gshc2020.com

You're a beer store owner trying to keep shelves stocked. Customers buy at a steady pace, you reorder accordingly, and for a while, it works. Then demand shifts because the Tartan Army is in town for the World Cup. Once you adjust your order, and then your wholesaler follows suit, it can send ripple effects throughout the supply chain that no one is prepared for. ​

In theory, every node in the chain should be able to forecast accurately and execute its task. You would think the game consistently shows how each node interprets signals differently, applies its own assumptions about what should happen and creates cascading inefficiencies. The problem is never a lack of effort or intention. It usually comes down to incomplete, misaligned data.

The solution is simply better visibility. Simple. So why have supply chains struggled to achieve this? Because the data that should enable real-time visibility is fragmented across a kaleidoscope of data, inside different systems and owned by different stakeholders throughout the entire network.

The Data Problem Is Real, And It’s Getting Bigger

One item supply chains are not lacking is data. The amount of data being produced daily remains staggering. More than 400 million terabytes of data is generated globally daily. The challenge is whether any of the data is useful, timely or clean enough to act on.

Many technologists and visionaries over the years have claimed that “data is the new oil.” While the analogy may be slightly overused, the challenge is that oil still needs to be refined into a useful end product. Exactly like data.

Raw data, like crude oil, must be processed before it can generate reliable insights for an organization. That becomes even harder as you move beyond your own four walls and start ingesting data from dozens of suppliers, carriers and partners across the world, each with their own systems and standards. You quickly realize, like in the beer game, this is an everyday challenge.

The Case For A Platform Approach

So how do we start tackling this issue? Think back to the concept of a technology or data platform. A layer that can aggregate data and signals from multiple nodes and add intelligence and practical actions to them. One could even start to focus on signals or events within that supply chain that need to be ingested.

Platforms are nothing new in the supply chain world. But the irrational exuberance around artificial intelligence (AI) has raised the stakes considerably. The importance of having a clean and actionable data layer—sitting in an accessible platform—is paramount because, as they say: AI is only as good as the data it runs on. Feeding a large language model (LLM) or machine learning (ML) model fragmented or inconsistent data won’t produce anything but noise and distraction.

Before any organization and supply chain can realize the promise of AI, they need to solve for the foundation.

Start With The Basics

Data audits and hygiene checks aren’t the most glamorous tasks. It’s boring housekeeping, but try building a house on a weak and flimsy foundation. Your digital transformation journey is built on your data, your digital exhaust. If it’s not solid, your journey is probably already off the rails.

Start with auditing what you have. You can find where your gaps are. And then you can start fixing some of the integrity issues or blind spots you may have before layering in more complex capabilities from new emerging technologies and data platforms.

Then identify the specific use cases and key challenges you’re trying to solve. What data is necessary to address those problems? Ensure you have access and prioritize that data. The challenge only increases as you look across your supply chain network. How can you ensure your expanded network adheres to your best practices?

The harder question, and the one most organizations may avoid, is how to extend data discipline beyond your own systems and into your broader network. How do you ensure your suppliers, 3PLs and distribution partners are feeding you reliable signals? This is where supply chain visibility goes from a reporting exercise to a potential competitive advantage.

Bottom line: supply chains need to create digital platforms to address specific needs and gain real-time visibility. From applying AI to specific use cases to adopting new practices, the digital platform is foundational. Without one, you are building on quicksand that is about to be swept away by a tidal wave.

Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?