A Quantitative Analysis of Big Data Analytics Capabilities and Supply Chain Management

Abstract

With the emergence of Big Data Technologies (BDT) and the growing application of Big Data Analytics (BDA), Supply Chain Management (SCM) researchers increasingly utilize BDA due to the opportunities from BDT and BDA present. Supply Chain (SC) data is inherently complex and results in an environment with high uncertainty, which presents a real challenge for SC decision-makers. This research study aimed to investigate and illustrate the application of BDA within the existing decision-making process. BDT allowed for the extraction and processing of SC data. BDA aided further understanding of SC inefficiencies and delivered valuable, actionable insights by validating the existence of the SC bullwhip phenomenon and its contributing factors. Furthermore, BDA enabled the pragmatic evaluation of linear and nonlinear regression SC relationships by applying machine learning techniques such as Principal Component Analysis (PCA) and multivariable regression analysis. Moreover, applying more sophisticated BDA time series and forecasting techniques such as Sarimax, Tbats, and neural networks improved forecasting accuracy. Ultimately, the improved demand planning and forecast accuracy will reduce SC uncertainty and the effects of the observed SC bullwhip phenomenon, thus creating a competitive advantage for all the members within the SC value chain.