Operational Excellence

BI and Supply Chain Management

Feb 14, 2019 | 167 views

The use of Business Intelligence tools goes far beyond the role of gathering and reporting transaction data for strategic decision making. These solutions already have intelligence capabilities capable of optimizing several areas of the business, making the operation more agile and assertive.

Areas such as supply chain management, in which process automation and data accuracy make a difference, leveraging the benefits of BI can deliver significant results.

SCM systems can be quite complex, with several elements running simultaneously. This can generate silos of information, which makes it difficult to capture and analyze the generated data.

Business Intelligence tools can greatly assist in gathering and crossing information, enabling a holistic view of operations, delivering benefits at virtually every stage of the production chain, and cost efficiency for the business.

We have listed three segments where BI integrated with SCM solutions can boost business gains:

1. Planning
BI can play an essential role in planning and managing demands, helping to determine the volume of production that the business needs to achieve its business objectives.

By analyzing market data and company history, BI tools can predict customer consumption patterns and thus help determine the resources needed to meet demand.

2. Distribution
Ensuring that the product reaches the customer with the right level of satisfaction is another constant challenge for companies.

According to the CMO, with Business Intelligence solutions, it is possible to track distribution fleets and ensure that they are meeting the expected SLAs. If there are problems, BI can also identify external constraints (bad roads, bad weather) by affecting automated delivery quality and suggesting improvements for decision makers.

3. Inventory
By including inventory data in the BI strategy, companies can streamline their sales strategies to increase profitability.

Business intelligence systems can help companies move their inventory more efficiently by identifying opportunities to proactively sell these items. This also applies to the management of raw materials for production, making agile the identification and location of items, as well as the replenishment process.

These are just a few of the scenarios in which Business Intelligence can transform a company's supply chain strategy. With the right strategy, consisting of a well-implemented solution and educated professionals working on the insights presented by BI, previously isolated factors in the production chain can be transformed into valuable assets for decision making and process optimization.