To determine the effect(s) of Big Data Analytics on warehousing costs in the FMCGs

Abstract

Warehousing forms an integral part of the total supply chain (SC) value network and accounts for approximately 25% of the total SC cost for manufacturers of FMCG. The silo approach throughout the SC nodes is impeding integration. The emergence of IR. 4.0 provides opportunities to adopt and utilise Big Data and Analytics (BDA) to act as a catalyst in improving the flow of information and exchange across the SC value network. This study endeavours to determine the effects of utilising BDA to mitigate warehousing (including 3PLs) costs. That includes the identification of data to be mined, its effect on warehousing cost and factors to consider in the adoption of BDA. The study was conducted utilising experts in either SC and/or in the manufacturing of FMCG and/or the data specialists. A questionnaire with Likert scales and questions requiring more thought in answering them was circulated to the experts for their insight. The findings provide several benefits, including data-driven decision making, improved process efficiency, reduction in warehouse sizes, etc.