Benefits of Business Intelligence in Supply Chain Management
In a nutshell, Business Intelligence includes the analysis of raw data, seeking to produce practical conclusions. This data can include sales figures, customer buying habits and operating costs.
Who has never heard the old phrase “knowledge is power”, right? And indeed, knowledge can open many doors, including (and perhaps mainly) within your company or organization.
This knowledge to which I refer is somewhat specific. In this article, we will talk about the benefits of Business Intelligence, which is a way of gaining a greater insight into certain sectors of a business. Let’s go?
Understanding the Concept
BI or Business Intelligence, is a set of theories, methodologies, processes, technologies and structures that transform large amounts of data into essential information for good management.
BI covers all sectors of the company, for instance, financial, operational, commercial and marketing and uses a set of techniques that support decision making and monitoring of the company.
Advantages of Business Intelligence within the Supply Chain
More and more companies see the need to reinvent themselves and use techniques and tools that set it apart from others.
In all of this, of course, the supply chain is included. For the supply chain to function in the best possible way, it is necessary to have modern resources and work techniques that bring optimization at each stage of the process.
Below you will find some of the benefits of using Business Intelligence in Supply Chain Management.
Facilitates decision making
Analyzing larger numbers of data, it is easier to take a step with greater security and responsibility, which is very important in strategic management.
By making a detailed reading of this data through BI, managers obtain a safer basis to implement new practices, new investments or any other action that needs certainty.
Offers detailed reporting
Reports are essential in any sector of a company, however complex or monotonous it may be to make one. It is even more evident when it comes to any decision to be taken.
Supply chain management is based on the analysis of collected data. The optimization of any process is only possible with accurate and correct information, in order to make a good analysis of all the efforts already made and thus know what must be maintained or, if not excluded, at least improved.
Using Business Intelligence within the supply chain can be a way to get ahead, to stand out with innovative ideas and proposals that can become a trend.
The studied data will help to discover specific needs and gaps for some bolder action, thus encouraging managers to have relevant and outstanding attitudes.
Collaborates for financial control
When supply chain management makes use of BI, it is possible to have broader access to the company’s finances, thus better understanding the costs and expenses of supply chain processes.
Given this information, it is possible to identify chances of reducing costs that do not affect the efficiency of any process, better directing some investment and even improving the profit margin.
Well, I hope you have understood what Business Intelligence is about and that this set of actions is useful to optimize the processes within your company. See you next time!