What is downstream integration approach in data analytics?
Answers
Explanation:
Downstream data have been electronically available on a weekly basis since the late 1980s. ... Downstream data is data that originates downstream on the demand side of the value chain
Downstream data is not a prescription for all value networks.
Companies with a constant portfolio of products with low demand
error will find little use for downstream data. However, the use of
downstream data grows in importance when the value network has
a rapid rate of new product introductions, the presence of strong regional channel preferences, long lead times, high demand variability, and a high risk of product obsolescence. We find that these characteristics encompass more supply chains largely because
of the execution of growth strategies, such as entering new markets and channels and
new product introductions.
Consider that downstream data is more available today than ever before: 65% of companies surveyed actively use downstream data in their sales function, 60% in marketing,
and 56% in supply chain. Through the redesign of channel relationships, the data can
be better harvested through the use of a DSR. However, designing and implementing a
DSR is a complex process that requires time, expertise, and the right level of resources.