Towards Data-Driven Logistics Value Chains in Namibia

Abstract

Logistics and supply chain management (SCM) is recognized as a key priority area in many developing economies and its sustainability as one of the principle pillars for socio-economic development is an area of concern that persists. We envisage that, increasingly the building, monitoring and evaluation of logistics value chains shall rely on Big Data & Analytics (BD & A) tools, methods and approaches from an interdisciplinary perspective. We see the building of Big Data infrastructure as a foundation for enabling knowledge discovery useful for various stakeholders along alogistics value chain. The process of knowledge-discovery in data(sets) in and of itself is not meaningful unless there is some value to a stakeholder group. The process of generating value or the data monetization process is increasingly becoming a key value-add that firms should focus on. Information transferred in the form of “orders” tends to be distorted and can misguide upstream members in their inventory and production and service decisions. Distorted information along logistics value chains can lead to tremendous inefficiency such as excessive inventory investments, poor customer service, lost revenues, misguided capacity plans, ineffective transportation and missed production and service schedules. We see a direct link of Big Data & Analytics playing a key role in addressing the “bullwhip effect”, where logistics value chains transform to Big Data-Driven Logistics Value Chains. Consequently, the emergence of the virtual organization is now much more viable and a relevant lens for assessing the impact of the value chain concept of business planning, with key antecedents related to data mining and information sharing. The argument is that big data infrastructure does not provide just a platform for the mere collection, storage and analysis only, but the end goal should be creating actual business value through data monetization. We apply this concepts in the context of Namibia, a South – West African country that seeks to position herself as a logistics hub in this part of Africa. Namibia’s policy goal to become a “Logistics Nation” can be better served by applying big data analytics to understand both the present and to predict the future. Using big data analytics to link supply chains end to end creates tremendous opportunities for competitive advantage. In today’s fiercely competitive global markets, the performance of national logistics and supply chains is a good marker of national competitiveness. This explains the growing interest in logistics and supply chain performance measurement over the past several years. We argue that such measurement should be undergirded by big data and analytics.