Can Analytics Change the Cost of Your Christmas Cookies?
December 15, 2016
Analytics is changing our lives. Thanks to Uber and its use of data and analytics, your annual holiday party is no longer followed by standing in the snow waiting for a cab. Thanks to Amazon’s data analytics, you know just the right books to buy for difficult relatives. Even your local supermarket is in on the act, using data analytics to create personalized offers.
But can analytics actually impact the price of your Christmas cookies? Emphatically, yes. In the next three Eka blogs we will explore the many ways analytics can impact the price of your holiday favorites.
Sourcing ingredients the right way
Whether your preferred indulgence is pecan pie, ginger bread cookies, or cupcakes, chances are it includes an international mix of ingredients. Sugar, flour, fruit, nuts, and dairy products are procured from all over the world.
At one end of the value chain, growers are using precision farming to keep their own costs down – without compromising quality. Evaluating the right information about soil health and moisture levels helps improve the output from each acre of land, and keeps the use of expensive fertilizers and excess water to a minimum. Dairy farmers can use data analytics to monitor the diet of their cows to get a better yield, or simply to keep their herds healthy and veterinary bills down.
At the other end of the value chain, bulk buyers are using advanced analytics like Eka’s Commodity Procurement App to make sure they buy their ingredients from the right supplier at the right time – and at the right price. Everyone knows that cranberry consumption peaks during the holiday season, but big data analytics helps buyers spot and respond to less obvious demand trends so they can make better planning and purchasing decisions.
Farmers and producers are also starting to connect machines and equipment with each other using Internet of Things (ioT) technology. IoT technology produces data about equipment performance that can be analyzed to create more efficient maintenance schedules to keep machinery and equipment running at peak performance for longer, lowering overall production costs.
Purchasing the right ingredients at the right time and price does indeed lower the cost of your Christmas treats.