Supply chain management is a complex business by nature. Each and every business that wants to be successful needs to have a sturdy supply chain system so that it can meet with customer expectations each and every time by delivering a product on time. There is a host of data available on the supply chain front. For instance, information with regards to trading partners, operating vendors, cost of transportation, cost of repairs, maintenance patterns, carrier performance etc. are available.
In order to make the most of these available data to arrive at profitable business decisions that can increase the revenue and drive a healthy bottom line, one needs to employ the methods of Business intelligence.
General roadblocks faced by Supply Chain System
A business establishment dealing in Supply Chain Management is faced with a lot of burning questions on the logistics front like-
- How to decide on a carrier that can ferry and deliver a product at an optimal cost?
- How to improve utilization of equipment and assets?
- How to attain detailed level analysis of fuel cost, maintenance costs etc.?
- How to evaluate the performance of vendors, shippers etc?
All the above mentioned questions and more information can be garnered using Business Intelligence tools and software that can help in arriving at profitable decisions for a business.
Merits of Business Intelligence Methods
Let us now enunciate some of the key benefits that can be obtained by means of application of Business Intelligence methods to your supply chain system.
- Effective reporting
Business Intelligence tools can help you with an ample number of dashboards which can help you gain a quick insight into the performance of a carrier, identify trends, capture exceptions etc. So you can now check the performance of your entire logistics in a single view with the help of meticulously planned real-time dashboards.
- Fare well compared to your competitors
Gain an easy view and access to data of freight charges, percentages of on-time delivery etc. that can be compared to that of the other players in the same industry as yours. So now you can benchmark your performance and set a performance target for your team based on the information provided by the business intelligence tools.
- Evaluate partnerships with logistics vendors
Performance evaluation of vendors, carriers, shippers etc. become easy and streamlined with the help of Business intelligence tools. So now you can choose a carrier or a vendor that provides you with optimum service and keeps up with time for the scheduled deliveries.
- Incorporate effective cost management strategies
Business Intelligence can help you arrive at important data points like transportation costs, repair costs, fuel cost, maintenance costs etc. So you can therefore, zero down on the activities or assets that contribute to the maximum cost. Subsequently, you can adopt methods to cut down the cost or do away with activities that tend to be non-value adds or roadblocks on the way of seamless execution of the logistics model.
To sum it up, bring in massive efficiency in the daily operations and manage costs along with seamless execution of strategies with the help of effective Business Intelligence methods and tools.