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Supply Chain Big Data Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 120 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4591918
UP TO OFF until Dec 31st 2023

Quick Summary:

As today's globalized economy becomes more tightly interlinked, the importance of a nimble, efficient supply chain becomes increasingly paramount. In this context and era of rampant digitization, the Supply Chain Big Data Analytics Market brings a compelling value proposition to the table. By harnessing the power of advanced information technology, firms can leverage Big Data Analytics to extract actionable insights from the wealth of information coursing through their supply chains, enhancing operational effectiveness across multiple industries ranging from food and beverage to high tech.

Manufacturing processes can be refined, logistics operations streamlined, and sales strategies honed to perfection with the help of Big Data Analytics. These analytics play a pivotal role in enhancing the performance and profitability of various sectors. Whether it's an energy-intensive factory adjusting its operations based on fluctuating electricity rates, trucking businesses using fuel analytics for better economy, or retailers employing IoT solutions for improved customer interaction, the transformative impact of data analytics on supply chain management is clear. Embracing the vast opportunities presented by the Supply Chain Big Data Analytics Market is thus becoming a business imperative for forward-looking executives.

Supply Chain Big Data Analytics Market is expected to register a CAGR of approximately 17.31% over the forecast period. With advancements in information technology, firms are now able to access, store, and process a massive amount of data. Organizations are analyzing data sets and identifying key insights to apply to their operations, making it evident that Big Data has an important role to play in any industry. From food and beverage distribution to high tech, companies are incorporating analytics.

Key Highlights

  • The widespread use of digital technologies has led to the emergence of Big Data Analytics (BDA) as a critical business capability to provide companies with better opportunities to obtain value from an increasingly huge amount of data and gain a commanding competitive advantage.
  • Big data analytics aid in the improvement of the supply chain in the manufacturing business. For example, energy-intensive manufacturing runs can be scheduled to take advantage of changing electricity rates. Data on production characteristics, such as assembly forces or size variances between components, can be saved and examined to aid in the root-cause investigation of errors, even if they arise years later. Agricultural seed processors and producers monitor the quality of their products in real-time using various types of cameras to obtain quality assessments for every individual seed.
  • Analytics are already being used by trucking businesses to optimize their operations. For example, they employ fuel usage analytics to increase vehicle economy and GPS technology to cut waiting times by distributing storage spaces in real time. Courier companies have begun real-time scheduling of deliveries to consumers based on geo-location and congestion data from their trucks. UPS, for example, has invested ten years in creating its On-Road Integrated Optimization and Navigation system (Orion) to improve the network's 55,000 paths. According to the company's CEO, David Abney, the new method would save $300 million to $400 million yearly. Big data analytics will also assist logistics operators in delivering goods with fewer delivery efforts by mining their data to estimate when a parcel will be delivered.
  • Big data analytics can help businesses investigate the sales benefits of grouping related goods together. Google has bought Skybox, a source of high-resolution satellite images that can be used to watch automobiles in a parking lot to predict in-store demand. Others have investigated the use of camera-equipped drones to track on-shelf stock levels.
  • The pandemic of COVID-19 has caused disruptions and hazards in global supply systems. Big data analytics (BDA) has recently arisen as a viable solution for providing firms with predicted and pre-emptive information to assist them in planning and reducing the effects of such hazards. The outbreak highlighted the need for solutions for supply chains to ensure long-term economic sustainability. During these difficult times, supply chain analytics helped firms to detect processes that needed immediate adjustment or products/items that were expected to run out soon, helping them to manage the demand-supply gap better. Furthermore, the suppliers are actively developing and delivering solutions to mitigate the detrimental effects of the outbreak on global supply chains.

Supply Chain Big Data Analytics Market Trends

Retail is Expected to Register a Significant Growth

  • The retail industry currently accounts for a significant portion of the supply chain big data analytics market, and it is expected to present numerous growth opportunities as a result of the increasing number of data sources generated by the adoption of IoT solutions, beacons, and RFID technologies throughout the supply chain. Additionally, growing retail sales are expected to drive market growth. For instance, last year, total retail sales in the United States were roughly USD 4.86 trillion, up USD 53 billion from the previous year.
  • Retailers may enhance their planning procedures and demand-sensing capacities by utilizing new data sources. Blue Yonder, for instance, has created data-intensive forecasting algorithms already being used in retail, wherein 130,000 SKUs and 200 impacting variables yield 150,000,000 probability distributions each day. This has significantly improved forecast accuracy, provided a better understanding of the firm's logistical capacity requirements, and decreased obsolescence, stock levels, and excess inventory. The recent expansion of third-party cloud-based platforms such as Blue Yonder makes similar activities more available to other retailers.
  • Governments worldwide have advised individuals to stay at home and are enacting social distancing regulations, increasing internet purchasing even more. During the pandemic, the demand for analytics solutions in retail has increased dramatically. Walmart, for example, developed Walmart Luminate in 2021, a platform that collects information from Walmart's consumer center and provides insights on perception, audience behavior, and channel success for the numerous brands at Walmart. In October last year, the company announced the forthcoming introduction of a Basic package at no cost to suppliers, making it even more straightforward for suppliers of any scale to engage with merchants to expand their companies. Walmart Luminate Basic is scheduled to go on the market in the current year.
  • Furthermore, merchants use IoT solutions and devices to analyze consumer data, manage stock levels, and improve customer interactions. These technological advancements allow for improved monitoring of items across the supply chain and aid in acquiring a clear insight into client behavior.
  • For instance, merchants have also installed a system of RFID readers into the ceiling space of the sales floors, enabling them to scan all of the items on show and offering more precise inventory visibility. American Apparel uses RFID tags and data analytics technologies to enhance inventory control, while Walmart uses Big Data analytics to improve in-store and supply-chain management.

North America is Expected to Hold Major Share

  • Companies and governments in the United States are constantly working to boost their manufacturing business by increasing productivity and focusing on strengthening operations across the supply chain in the country's manufacturing industry. As the e-commerce business in the United States expands, so does the demand for effective supply chain management. According to the US Commerce Department, the country's e-commerce business grew by 10.8% in the third quarter of the last year. Online orders accounted for over 20.6% of all retail dollars spent.
  • The United States is one of the world's largest retail marketplaces, and COVID-19 influenced it considerably. However, getting back on track with rising numbers and augmenting growth to keep the momentum going requires advanced tech to evaluate data at that scale. According to the National Retail Federation (NRF), retail is the country's biggest private industry, accounting for USD 3.9 trillion yearly GDP and employing one in every four Americans (52 million).
  • According to the US Census Bureau, retail sales in March last year were up 0.5% seasonally adjusted from February and 6.9% Y-O-Y. In February, there were rises of 0.8% month over month and 18.2% Y-O-Y.
  • Additionally, E-retailers in the North American retail sector are trying to improve the consumer experience by including same-day delivery, which may be accomplished efficiently with excellent supply chain management.
  • Further, regional startups are gathering funds to improve operational efficiency using Big Data analytics and other new technologies. For example, Kharon, an analytics and data company providing companies with intelligence at the intersection of world security and business, announced a partnership with Transparency-One, an international business connectivity and cloud-based platform for distribution network mapping and sub-tier tracking, in September last year. Clients may use Transparency-One to perform product-level distribution network mapping and document monitoring while also automating refused and high-risk party screenings against Kharon's sector Forced Labor database.

Supply Chain Big Data Analytics Market Competitor Analysis

The supply chain big data analytics market is highly competitive and consists of several major players. In terms of market share, a few major players currently dominate the market, including SAP SE, IBM Corporation, Oracle Corporation, MicroStrategy Incorporated, and Genpact Limited, among others. These companies leverage strategic collaborative initiatives to increase their market shares and profitability.

In October 2022, Oracle unveiled a slew of new product developments across its complete data and analytics solutions portfolio. With the additional features in Oracle Fusion Analytics for ERP, CX, SCM, and HCM analytics, decision-makers have a prebuilt collection of over 2,000 best-practice dashboards, KPIs, and reports to evaluate performance against strategic objectives. In November 2022, AWS introduced AWS Supply Chain. This new platform enables organizations to supply chain visibility better to make quicker, more informed choices that reduce risks, save money, and enhance customer experiences. AWS Supply Chain seamlessly aggregates and analyzes data from numerous supply chain systems. This allows businesses to monitor their operations in real-time, identify patterns faster, and provide more accurate demand projections to guarantee enough inventory to fulfill consumer expectations.

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  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Need of Business Data to Improve Efficiency
4.3 Market Restraints
4.3.1 Operational Complexity Coupled with High Maintenance Costs
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter Five Forces
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of the Impact of COVID-19 on the Market
5.1 By Type
5.1.1 Solution Supply Chain Procurement and Planning Tool Sales and Operations Planning Manufacturing Analytics Transportation and Logistics Analytics Other Solutions (Inventory Planning and Optimization Analytics and Scheduling and Reporting Tools)
5.1.2 Service Professional Service Support and Maintenance Service
5.2 End User
5.2.1 Retail
5.2.2 Transportation and Logistics
5.2.3 Manufacturing
5.2.4 Healthcare
5.2.5 Other End Users
5.3 Geography
5.3.1 North America United States Canada
5.3.2 Europe United Kingdom Germany France Italy Rest of Europe
5.3.3 Asia-Pacific China Japan South Korea India Rest of Asia-Pacific
5.3.4 Latin America Mexico Brazil Argentina Rest of Latin America
5.3.5 Middle-East & Africa United Arab Emirates Saudi Arabia South Africa Rest of Middle-East & Africa
6.1 Company Profiles
6.1.1 SAP SE (SAP)
6.1.2 IBM Corporation
6.1.3 Oracle Corporation
6.1.4 MicroStrategy Incorporated
6.1.5 Genpact Limited
6.1.6 SAS Institute Inc.
6.1.7 Sage Clarity Systems
6.1.8 Salesforce.com Inc (Tableau Software Inc.)
6.1.9 Birst Inc.
6.1.10 Capgemini Group
6.1.11 Kinaxis Inc.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • SAP SE (SAP)
  • IBM Corporation
  • Oracle Corporation
  • MicroStrategy Incorporated
  • Genpact Limited
  • SAS Institute Inc.
  • Sage Clarity Systems
  • Salesforce.com Inc (Tableau Software Inc.)
  • Birst Inc.
  • Capgemini Group
  • Kinaxis Inc.