How Business Intelligence Can Transform Your Supply Chain?

By Author: Bappaditta Jana
Total Articles: 69
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In a business, the supply chain is an entire system that involves a series of processes, from sourcing the raw materials to the delivery of the product to the target customers. So, at each stage of the supply chain, there involves a lot of activities. Most successful businesses pay a lot of attention to ensure proper management of their supply chain. Some are even using the latest technology for supply chain management, and business intelligence (BI) is one such technology that is gradually becoming quite popular across various industries. However, many are still unsure how it can transform their supply chain as the challenges ahead are plenty. So, let’s have a look to understand the same.

Offers the much-needed visibility

One of the primary challenges encountered by supply chain managers is the lack of visibility. Often they lack a clear picture of product availability and inventory carrying cost. However, when they use a BI-driven tool that features an interactive dashboard, they get the much-needed visibility via charts, graphs, and gauges. As a result, they came to know about multiple details ...
... of their supply chain, earlier a remote possibility to ensure proper management. Today many BI tools available in the market are efficient in analyzing a vast set of data and attractive representation of the findings. Remember, the future is that of a predictive supply chain which is impossible to achieve without having business intelligence.

Prevent incidents of overstocking

Most of the time, it is the fear of running out of stock that businesses end up overstocking products leading to increased logistics costs. This also happens when the business owner is misinformed about the market demand for its products and peak sales seasons. A business intelligence tool prevents such incidents of overstocking by keeping the concerned person well-informed about the market trends, customer demand, and buying pattern, which helps him or her avoid surplus stock of goods and ensures an effective supply chain. Overstocking of goods in a retail store can also translate into a lack of profitability and losing productivity.

Identify and mitigate the risks

With business intelligence, one can identify the risks at an early stage. As a result, it becomes possible to mitigate them in time. Some of these risks involve interruption in the supply of raw materials due to financial instability of the supplier, associated environmental risks in the manufacturing process, or a technical fault in some manufacturing equipment or machinery. BI helps the supply chain manager keep a close eye on all the statistics to identify and mitigate such risks. There also lies the risk of encountering an unforeseen event or chain of external events that can adversely impact the supply chain in the long run.

Business intelligence (BI) can have a positive impact on the supply chain. After all, it creates a better flow of products. Today, information is power, and Business intelligence (BI) helps to harness this tremendous power to transform your supply chain. The key to benefiting the most is to choose a BI tool wisely.

Bappaditta Jana is a blogger who loves to spend his free time engaging in sports or gardening. Based in Kolkata, he is currently working with EasyReports an IT firm that has developed a BI reporting tool that can easily integrate with Tally ERP and many other applications.