The rapidly evolving field of reality mining analyzes the flood of data on human behavior patterns emanating from sources as diverse as mobile phone networks, credit card records, and security TV installations. This research is shedding new light on the living habits of populations at the local, regional, national, and global levels.
In the supply chain arena, this technology has significant potential, particularly for demand management applications. Accurately forecasting demand and matching these projections with product supply remains a major challenge for most companies. However, the analytical methods used by reality mining could provide the demand management break that companies are seeking.
Reality mining provides a much deeper and more nuanced understanding of buying decisions – and hence patterns of demand – than traditional forecasting methods. Also, because this fledgling research field brings a new set of data providers to the table, it is not restricted by the organizational silos and demarcations that hamper the use of traditional sources such as point-of-sale (POS).
Still, the technology must overcome some hurdles before it can become more widely used. The most notable challenge revolves around privacy issues, since personal information such as mobile phone records is an integral part of reality-mining analysis. However, there is cause for optimism as efforts are under way to develop credible solutions that could emerge in the near future.
This white paper is part of a series of papers published by the MIT Center for Transportation & Logistics (MIT CTL) on disruptive technologies that could reshape supply chains over the next decade.
For more information on supply chain and logistics training opportunities through CTL, visit our education page