What is the role of Change Data Capture in Supply Chain?

The supply chain is no longer just about moving goods from point A to point B. It's about having the right information at the right time to make strategic decisions.

A recent study by Gartner revealed that 87% of supply chain organizations are actively implementing or considering implementing Change Data Capture (CDC) solutions. This statistic highlights the growing recognition of CDC as a critical tool for optimizing supply chain operations in the age of big data.

But What is this Change Data Capture (CDC)?

Change Data Capture (CDC) in the supply chain industry provides a real-time record of every modification made to your supply chain data. It provides a continuous feed of updates on new orders, inventory adjustments, shipment status changes and many more.

It eliminates the need for slow, outdated data dumps, ensuring your downstream applications like analytics dashboards and warehouse management systems are constantly updated with the latest information.

What are the challenges faced Supply Chain companies due to Traditional methods of Data Management?

a. Data Silos and Lack of Visibility

Traditional supply chain systems often operate in silos, with data fragmented across different departments and systems. This limited visibility hinders effective decision-making, collaboration, and problem-solving. For instance, sales, inventory, and transportation departments might have their own systems, making it difficult to track orders from inception to delivery and identify potential bottlenecks.

b. Manual Processes and Data Entry Errors

Reliance on manual data entry and paper-based systems introduces errors, delays, and inefficiencies. Human error, such as incorrect data input or transcription mistakes, can lead to inaccurate records, order processing delays, and customer dissatisfaction. Streamlining data entry processes and reducing manual intervention is crucial for improving data accuracy and efficiency.

c. Inefficient Data Integration

Integrating data from disparate systems is complex and time-consuming. Traditional methods often involve manual data extraction, cleaning, and transformation, which is prone to errors and delays. This hinders the ability to analyze data holistically and derive actionable insights. For instance, combining data from ERP, transportation management systems, and warehouse management systems to get a complete picture of inventory levels can be a daunting challenge.

d. Lack of Real-time data

Traditional supply chain systems often rely on batch processing, providing delayed insights into supply chain performance. This hinders proactive decision-making and responsiveness to changes in demand or supply. Real-time data is essential for optimizing inventory levels, improving order fulfillment, and managing transportation efficiently. For example, without real-time visibility into inventory levels, businesses may struggle to prevent stockouts or overstocks.

Role of Change Data Capture (CDC) in Supply Chain -

CDC helps companies identify bottlenecks and inefficiencies in the supply chain and make improvements to reduce costs and improve delivery times. By tracking these changes, logistics companies are able to manage their supply chain in a better way, improve customer service, and ensure that orders are delivered on time. - Macrometa

Here are four major reasons:

1. Live Inventory Visibility

Traditional batch data updates lag behind actual changes in inventory levels. CDC gives continuous updates of data on inventory additions, removals, and adjustments, enabling near real-time tracking of stock. This allows for better decision-making on production scheduling, order fulfilment, and warehouse management.

Thin of a company that relies on daily batch updates for inventory levels. A sudden surge in customer demand might not be reflected in the system until the next day's update. With CDC, the system would capture the increase in real-time, allowing the company to react immediately by expediting production or rerouting deliveries from other warehouses.

2. Improved Order Tracking

In a complex supply chain, orders undergo numerous changes – from routing modifications to quantity updates. CDC captures these changes in real-time, providing a detailed audit trail for each order. This allows for faster identification of discrepancies, delays, or potential stockouts, enabling proactive intervention and improved customer service.

In case there’s an order for a specific product that is to be rerouted to a different warehouse due to unexpected stock depletion at the original destination. CDC would capture this change and update the customer portal immediately, informing them of the revised delivery timeline. This transparency prevents confusion and builds trust with the customer.

3. Data Synchronization

Supply chains involve multiple data sources – from warehouse management systems (WMS) to transportation management systems (TMS). CDC facilitates continuous data synchronization between these systems, ensuring everyone has access to the most up-to-date information. This eliminates discrepancies caused by data silos and improves overall supply chain efficiency.

A WMS updates the status of an order as "shipped" once it leaves the warehouse. But the TMS may not receive this update until the end of the day due to batch processing. CDC ensures the TMS receives the "shipped" notification instantaneously, allowing them to track the shipment progress and update the customer portal accordingly.

4. Better Analytics and Forecasting

CDC provides a historical record of all changes made to supply chain data. This granular data is to be used for advanced analytics to identify trends, predict demand fluctuations, and optimize inventory management. By understanding how changes impact the supply chain, businesses make data-driven decisions for better planning and resource allocation.

By analyzing historical data captured through CDC, a company is able to identify a seasonal surge in demand for a particular product. This insight allows them to proactively adjust their inventory levels and production schedules to meet the anticipated demand, preventing stock outs and lost sales opportunities.

How does Himcos help?

At Himcos , we understand the critical role that Change Data Capture plays in modern supply chain management. We offer comprehensive CDC solutions that capture changes in your source systems and deliver them to your downstream custom applications in real-time. Our solutions are designed to be scalable and integrate seamlessly with your existing infrastructure.

Let Himcos be your partner in building a data-driven supply chain that is resilient, efficient, and customer-centric. Contact us today to learn more about our CDC solutions!

Success Story

Himcos partnered with a company to help them keep track of their data in real-time. They needed to know whenever something changed in their database so they could make smart decisions quickly.

By using a tool called Change Data Capture (CDC) with Azure SQL Database and Power BI, we made it easy for the company to see what was happening with their data as the changes happened. This meant they could make better decisions faster because they always had the latest information right in front of them.

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