Primary Data

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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Raw data, also called primary data, are statistical data recorded at the time of collection. In the context of supply chain management, the raw data may be defined as the entire range of sales activity for a given product. This data is then processed, aggregated and presented to form a complete supply chain profile.

Primary data gathering includes gathering information on customers, manufacturers, vendors, direct suppliers, among other parties involved in the supply chain. It is important that this information gathered is reliable and consistent because it forms the basis of future decisions and assessments. The use of primary data also gives the decision maker a picture of the current status of the organization's assets and inventory. More importantly, this information allows quick assessment of what actions need to be taken to address problems of slow production or poor selling rates. This is because primary data is available when needed, rather than when the next survey date comes along.

The collected data from the primary source are combined with secondary data to form a picture of the entire organization. By combining the two, an objective snapshot of organization performance can be derived. This snapshot provides vital insights into how business units within an organization are performing relative to one another. This allows quick identification of areas where improvement is needed in order to improve organizational performance. Current studies have found that ninety percent of managers agree that the primary source of their decisions is based on surveys conducted within their organizations. Secondary data also supports these statements by showing how surveys have been used to make important decisions regarding strategic decisions within an organization.

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