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Business Intelligence in Supply Chain Management


Business Intelligence in Supply Chain Management

Business Intelligence.
Business intelligence comprises the strategies and technologies used by enterprises for the data analysis of business information. BI technologies provide historical, current and predictive views of business operations.

Supply chain management.
Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

Supply chain intelligence.
Supply Chain Intelligence helps organizations tackle the increased global complexity that touches supply chains. It collects and presents crucial data from all trading partners in easy-to-use, customization dashboards on a computer or tablet.

How Can Business Intelligence for Supply Chain Management Help in Business?
Gathering and analyzing Business Intelligence should not be difficult and it should not be generic. Dashboards should not be restrictive and business users should be able to get what they need, when they need it to make good business decisions and accurately plan. When it comes to the Supply Chain function and industry, business intelligence is more important than ever today.
If a business can cut through the months and years of customization and planning to achieve a robust business intelligence foundation that provides rapid return on investment (ROI) with low Total Cost of Ownership (TCO), it can get the best from its business intelligence and be competitive and successful. The ideal solution provides tools and features that support Business Intelligence for Supply Chain Management and are flexible enough to allow the business to meet its own unique business requirements.

Is Supply Chains Need BI.

Yes, Business Intelligence within the supply chain improves internal efficiencies and accountability while saving time and eliminating costs with metrics-driven decision-making and change management. It allows companies to enable more predictable business performance by putting actionable information into the hands of key decision makers. Business intelligence (BI) has come a long way from its management reporting roots. Analytical decision support is embedded within today's supply chain planning, manufacturing and logistics solutions. Users gain insights based on real-time data rather than yesterday's batch roll.


The Role of Business Intelligence in Supply Chain Management in organization.
Business Intelligence (BI) comprises of a set of methods, processes and technologies that have the ability to transform data into useful information. Integrating it with the framework of supply chain management (SCM) can easily boost its analytics and effectiveness. But, what is the point behind integrating BI and SCM and how it can create a difference?
The information acquired in SCM gains its value only when analyzed, especially if the analysis providers boarder picture of enterprise. This form of integration was not easy or common, until trusted business intelligence companies made their way. Such companies were empowered with qualified professional and advance modules that brought a BI platform of SCM.

Business intelligence can be incorporated to the supply chain in not just one but many ways, some of these include:
  • Price performance and data management:
Having an eye over the annual profit, spending and loss is extremely easy when you have big data analytics Hong Kong with you. This helps you to figure out the cash flow and where it is present in the supply chain.

  • Maximize saving by integrating sourcing with data management: 
Large organizations, such as hospitals or industries, can make use of the provided product data which will speed up their analysis. Moreover, the analyst can even use their own terms based on the products that they are dealing with. This improves your saving to a greater extent.

  • Product data for accelerating analysis: 
The various price movements that will occur in your supply chain will remain invisible without detailed analysis. So, for cost-effective manufacturing and procurement business it is essential to make use of product data for accelerating analysis.

  • Mapping the path of value to execution: 
In order to identify the opportunities for reducing cost, you should leverage scalable solutions that offer desired results. For this, you must know from where to begin the negotiations and where to end it.

  • Key variables for execution and evaluation: 
Once you know the non-financial and financial impact of the purchases involved in SCM the same can be executed in various fields easily.
The supply chain management consists of four major segments which are procurement, data management, sourcing & contracting and analysis. Each of this can be conveniently handled with the help of BI.



Tools for Supply Chain Management in Business Intelligence:-
The dashboards should provide a comprehensive, out-of-the-box domain and industry focus that includes KPI for supply chain management, and a reporting tool for supply chain management. With these tools, business users can adopt and use business intelligence right away with minimal training and be empowered to find solutions to problems and see patterns and trends and test hypotheses to meet future market and business needs.

This type of software provides the supply chain manager and other teams and individuals engaged in aspects of the supply chain the ability to create reports and personalized dashboards and alerts to establish objective goals and KPI for Supply Chain Management and monitor shipment systems and other enterprise applications using an integrated, single view of data.
BI in Transportation & Logistics
Using BI tools with in a transportation operation can provides are as follows:
  • Detailed monitoring across the entire supply chain, including metrics such as on-time delivery, to identify delivery issues at any point in the process.
  • Better understanding of fuel, dray, and accessorial costs at a detail or summary level.
  • Detailed evaluation of vendor performance of on-time deliveries and work order performance.
  • Review volume of work orders by motor carrier and time between assigned and accepted to identify key partners, consolidate workload to better performing receivers, and improve equipment utilization.
  • The ability to drill down into shipment history for decision-making and continuous improvement.
  • Visibility into events that impact on-time delivery and asset utilization for better decision-making and risk mitigation.
  • Insight into what drives costs and profit within the supply chain so managers allocate resources properly and know where to make improvements.
  • The ability to update strategy quickly to stay ahead of the competition.
Business Intelligence within your transportation and logistics operation can improve profitability with in-depth analysis of the service and network portfolio across customers, suppliers and every step in the logistics chain. You can track supplier performance against service level agreements to identify opportunities, negotiate intelligently, and create rate contracts based on results.
One of the most important aspects of a business intelligence solution is the detailed reporting. Drill down to analyze loads, routes, carriers, bookings, slotting, wait times, freight audit and payment to understand cost variables. Streamline compliance reporting with drill-down detail to documentation. You can create visual models using dynamic charts and graphs. Reports can be static or interactive and viewed online to allow management to track operational progress.
6 possible ways to use business intelligence in the supply chain management.
Below are six ways supply chain managers can integrate business intelligence across these functions to reduce expense costs and boost value,
  1. Combine data management and price performance: The supply chain leaders can use BI to benchmark a larger percentage of their annual spend, and discover more opportunities for savings. And further we can find out where cash flow is hiding within your supply data.
  2. Let deep product data accelerate value analysis: Hospitals can use enriched, attributed product data to speed up their value analysis results. Through the use of a formulary, supply chain directors can make it known to their value analysis teams which products are preferred.
  3. Maximize savings by combining data management and sourcing: Price movements in the market are invisible without data.
  4. Pricing insights amplify your value analysis results: The hospitals should help their value analysis teams understand the financial impact of different product decisions by using BI from their procurement process.
  5. Put insight into action by mapping a path to value and executing: After opportunities for cost reduction have been identified, hospitals should leverage a scalable solution to deliver results.
  6. Know your target product mix, key variables for evaluation and execute: After hospitals have considered the financial and non-financial impact of product purchases, they can execute on their local sourcing initiatives.
As data analytics becomes critical in supply chain operations and management, supply chain analytics software solutions and tools have become must-have technologies. Many supply chain analytics tools feature improved forecasting and sales and operations planning to give supply chain managers the business intelligence they need to streamline operations, lower costs, and improve customer service.
The top supply chain analytics tools to help busy supply chain managers find those that will be of the most value to them. The tools that we chose to include are from some of the leading software and analytics companies, and they all include features to deliver value and improve operational efficiency. Many of the following tools include inventory analysis, transportation analytics, demand forecasting capabilities, and predictive analytics to serve as comprehensive solutions for supply chain analytics. Some of our tools also are supply chain management (SCM) solutions with built-in analytics to give companies a more cost-effective solution software's are as follows:






PeopleSoft Supply Chain Analytics gives organizations the real-time information needed to manage minute-to-minute operational performance. Track profitable products, investigate production problems, identify product quality issues, and track operational performance to keep costs low and improve customer satisfaction with PeopleSoft Supply Chain Analytics.




Halo BI offers analytics for supply chain planning and data discovery that is enterprise scaled, rapidly implemented, and data secured. With Halo, supply chain managers and executives can analyze, decide, and plan faster than ever before.

Deloitte is known for helping clients identify unrealized opportunities and illuminating new ways to adapt to change. Their suite of supply chain analytics solutions deliver smarter insight with analytics perspectives and solutions to help supply chain leaders put their data to work to solve challenges in commodity volatility, demand forecasting, and supplier-specific issues.


4. Tableau
Tableau helps organizations see and understand data. Their solution delivers supply chain analytics in a visual environment that is accessible to everyone while supporting advanced modelling and forecasting.

SAP Ariba simplifies procurement and makes B2B commerce a breeze by helping companies thrive in the digital economy. SAP Ariba gives users clear insight into spend and suppliers to help increase savings, mitigate risks, and improve compliance. This supply chain analytics tool leads to better and faster buying decisions because of the insight it delivers.



Conclusion:

The Business intelligence in Supply chain management can improve the workflow, designing of the work and other strategic planning activities in the organization. The main aim of adapting the supply chain intelligence system in organization is to track the tactical processes and to identify the breakdowns before they impact. By enhancing supply chain management with business intelligence will help the management in better collaborate with partners and communicate with all key stakeholders in the organization. For manufacturers and distributors, maintaining a healthy, nimble supply chain is not always an easy task. However, there are tools today that were not available even a couple of years ago. And these tools provide new opportunities for far greater control over your own destiny.

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