Business Intelligence For Supply Chain – If your car has engine, battery, brake problems, can you drive? It’s easy, and even if you do, there will be problems along the way. Moreover, ignoring the signs of a problem can not only cost you a lot of money, but also put you at risk of an accident. Supply Chain Management is, in some ways, similar to this process, only instead of machine parts, you are dealing with procurement, logistics, operations management, software, and you must maintain them properly. But an uneven set of data and the inability to process it is one of the reasons why your machine does not work as it should.
Since the supply chain is one of the main areas you need to focus on digital transformation (DT), its intelligence can put your business on the fast track to success. Applying business intelligence to supply chain management (SCM) is a way to process an incredible amount of data and turn it into meaningful information. With this technology at your fingertips, you can automatically track key KPIs such as cash-to-cycle, fill rate, spare days, inventory rate, turnover, customer order cycle, etc. and drill down into that data to reveal some insights. details are not so clear.
Business Intelligence For Supply Chain
In this article, we’ll dive deeper into the layers of supply chain management, explore how BI solutions can improve your business results, and provide you with a supply chain intelligence PDF checklist so you can assess your company’s level of intelligence yourself.
Ways To Use Ai For Supply Chain Management
Giving you access to all your data and turning it into valuable information that you can check at any time is the main advantage of a Business Intelligence solution for SCM.
Imagine that you have to connect a large number of freight indicators, rail transport and leading rail operators. Creating graphical images in Excel does not seem too difficult until you make changes to the data and, as a result, to the tables. In this case, business analysts must manually correct the data in the tables. It becomes even more surprising if the organization does not have a common data warehouse, and they can only access the data that each employee works with. – Maxim Hayan, financial business partner.
With Business Intelligence in the supply chain, this situation does not happen. Graphic displays of freight performance, train traffic and leading train operators are automatically linked and available in easy-to-understand real-time dashboards with one click.
Business Intelligence And Analytics For The Logistics, Transportation, And Supply Chain Industries
Technology implementation can affect your organization’s effectiveness and profitability at all levels of SCM—from strategic to tactical to operational.
The strategic level is about tracking market trends and overall planning of how your supply chain will work in line with your organization’s goals, customer needs, supplier requirements, and more. Lower-level change will be ineffective without a common understanding of the company’s long-term strategy. It’s like trying to repair a house after rain damage without realizing that the leaky roof needs to be repaired first. Here are some strategic activities where implementing a BI solution would be beneficial:
At a strategic level, the use of Business Intelligence in supply chain management helps you decide on your company’s global approach: if you focus only on the production of high-volume goods with low margins, or if it is more profitable for you. combine high and low margins. . goods? If you choose the latter option, what is the ideal ratio of production capacity to produce? BI helps you determine the optimal balance based on all input data.
Leveraging Market Intelligence To Manage Supply Chain Risk
Selling a low-margin but high-volume item that overloads your production line is like offering vanilla ice cream—it’s a standard product, but in high demand. And here is a question to ask yourself: if your company can handle large order products, how profitable is it for you to continue doing vanilla things? – Maxim Hayan, financial business partner
Whether you are planning to develop a new product or upgrade an existing product, BI technology can help you efficiently distribute the production workload. For example, take a manufacturer who wants to change the company’s production based on the trends of the new season. BI helps identify low-cost items that need to be phased out and the capacity needed to produce new items. In theory, everything can be done in Excel, but with BI it is faster and easier.
Where is it more profitable to locate factories? Countries like Malaysia, Taiwan, China and India seem like the best option at first glance. But if you consider other parameters such as the type of work, risk, infrastructure, etc., your choice will not be so easy.
What Is Competitive Intelligence? Competitive Intelligence In A Nutshell
If you divide the goods for different markets, another question arises. Which option is more profitable for you: production in one of the countries and shipping to other countries or have a factory in each country to save logistics and speed it up? There is no one-size-fits-all solution, and Business Intelligence for supply chain management can either confirm what your business sense is telling you or prove it wrong with up-to-date and accurate data.
Once you’ve established the organization’s overall priorities, it’s time to dive deeper into your medium- and short-term SCM activities. What specific production processes do you need to identify to achieve your major goals? How do you minimize risk and control costs in practice? In this step, you determine the means to achieve the main results – production efficiency and a balanced price with high customer satisfaction. If your manufacturing facilities are located in different countries, the tactical activities may be different because you need to consider local resources, taxes, etc.
Determining whether logistics should be managed in-house or by a third party is one of the top priorities at the SCM tactical level that BI can help with.
Supply Chain Financing Solutions Procurement Research
What about storage? Lack of SCM leads to lack of materials and products and, in turn, to non-fulfillment of work on time. On the other hand, each piece of inventory you hold costs you money. If the warehouse space is located in a country with a high cost of industrial rent, such as the UK, Norway or Ireland, the cost will be very high.
For example, you buy many components for a product from different suppliers at the best price. This may seem like the most profitable way, since the price of the final product is very low. On the other hand, you need to coordinate your shipping so that production does not stop when one of the components is shipped. Is the speed of production more important than the price? Can you sacrifice higher productivity and faster results to save costs or risk losing customers? This is where the role of business intelligence in supply chain management comes into play – the software allows quick visualization and comparison of offers from different suppliers.
How many urgent and non-urgent orders do you have? This information is usually stored in people’s memory, on paper or preferably in Outlook. But if you produce different types of the same product, you need to follow the production flow for each type, because you must first produce one type of product, stop the line, reconfigure it to make another type of goods, and start the line. Again, managing such a complex process without seeing the data in real time is not effective. This is one of the points where you can get the most from the supply chain management and business intelligence duo. Scheduling all employees who can track their current situation is key to completing assignments on time.
How To Use Data And Machine Learning In Supply Chain Networks
Without proper analysis of your supply chain performance, it is impossible to know if you are moving towards your goals and at what speed. And BI helps you in this task. Take advantage of creating a custom dashboard that includes both common KPIs such as supply days, fill rate, inventory rate, turnover, etc. and your own specific KPIs based on your organization’s focus area.
For example, what if you are concerned about data on the number of negative reviews and product returns? In this case, you can add information about the number of defect cases to this data and create a unique KPI to track product quality. In addition, BI solutions allow you to collect data from various sources, both external (external research, customer feedback, social media, etc.) and internal (ERP, IoT devices, logistics and transport management systems, etc.). the results.
This level of SCM includes your daily routine tasks such as logistics monitoring, production scheduling, ensuring sufficient availability for production, and more. In the supply chain, you need to connect sales and purchase plans with production capacity and maintenance services. You can plan anything…in theory. But what if the company stops? What is your Plan B? How do you position the ability to deliver on time to the customer?
Benefits Of Procurement Market Intelligence, Supply Chain| Spendedge
No company has a 100% on-time delivery rate. At the same time, this indicator is very important for buyers – 73% of them are ready to reduce
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