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What is Big Data anyway? Gigabytes? Terabytes? Petabytes? The first personal computer
that Id had touted a storage space of 100 GB, a rare feature in 2004. But with the
advancements in technology and the advent of Internet of Things (IoT), 100 GB has been
rendered insufficient. Although 100 GB is not trivially small yet but to put the bigness of
big data into perspective, just imagine that Google handles 100 billion searches per month,
Wal-Mart requires 2.5 PB (petabytes) to store its transactional data while eBay requires an
almost unimaginable 90 PB.1 Handling and analysing this amount of data is no duck soup, it
requires an infrastructure aptly described by Adam Jacobs as massively parallel software
running on tens, hundreds, or even thousands of servers2. This kind of infrastructure has its
own costs. So why do companies maintain big data? Why do they need it? What benefits do
they see in it?
As supply chains for companies are becoming more complex with time, spanning multiple
continents, involving external suppliers and customer demands are becoming more complex,
BDA is becoming more important to reduce inventory, lower costs, enhance customer
responsiveness, and improve agility. As more and more companies are adopting BDA for
managing their supply chain.
Big data has different characteristics by which it is classified. These characteristics are
Volume, Variety, Velocity, Variability, Veracity and Complexity. Further to these, it can be
structured, semi-structured and unstructured.
BDA is also helping companies in real time delivery tracking. The data is composed of inputs
from bar-codes, radio frequency identification (RFID) tags, global positioning systems (GPS)
devices, among others. By using the data collected from these systems a logistics manager
can optimize delivery scheduling as she has the traffic data, road network data, and vehicle
data, in real-time. She can track packages and vehicles in real-time no matter where they are.
BDA is also helping firms in optimizing their supplier management (by forecasting margins if
different mix of suppliers is chosen); product pricing (forecasting profit margins at different
price points by anticipating consumer behaviour) among many other things.
After
its
patent
for
automated
product
sourcing
Amazon has
taken
the
BDA
one
notch up by
patenting its
Anticipatory Shipping in December, 2013.5 It will use predictive analysis to forecast future
sales at different locations and ship its products pre-packaged to the nearest fulfilment centre.
14%
28%
28%
32%
33%
36%
36%
41%
46%
Sources
1. Inside eBays 90PB data warehouse, http://www.itnews.com.au/News/342615,insideebay8217s-90pb-data-warehouse.aspx, Accessed on 26th July, 2015
2. The Pathologies of Big Data, Adam Jacobs, http://queue.acm.org/detail.cfm?
id=1563874, Accessed on 25th July, 2015
3. Big Data Analytics in Supply Chain Management: Trends and Related Research.
Presented at 6th International Conference on Operations and Supply Chain
Management, Bali, 2014
(http://www.researchgate.net/publication/270506965_Big_Data_Analytics_in_Supply
_Chain_Management_Trends_and_Related_Research)
4. Making Big Data Work: Supply Chain Management
(https://www.bcgperspectives.com/content/articles/technology_making_big_data_wor
k_supply_chain_management/)
5. Amazon Patents Anticipatory Shipping To Start Sending Stuff Before Youve
Bought It (http://techcrunch.com/2014/01/18/amazon-pre-ships/)
6. Big Data Analytics in Supply Chain: Hype or Here to Stay,
https://acnprod.accenture.com/_acnmedia/Accenture/ConversionAssets/DotCom/Documents/Global/PDF/Dualpub_2/Accenture-Global-OperationsMegatrends-Study-Big-Data-Analytics.pdf#zoom=50, Accessed on 26th July, 2015