Whether it is large business or a SMB – (Small and Medium Business), Supply Chain Management (SCM) has become a critical function. In the increasingly flattening world, the management of inputs (like raw material and services), and delivery of outputs (from point of origin to consumption), is becoming more complex. The success of businesses depends on evolving an efficient supply chain management system.
This needs a lot of data and analysis, all working in real time. In this scenario, enterprise should take advantage of every available methods, tools and systems. So, Business Intelligence tools usage is growing with SCM discipline.
The significance of advanced business intelligence technologies in enterprises is given emphasis in almost all C level executive meetings. As referred in the Aberdeen report, which leverages 209 companies’ practices, Best In Class Performance companies use BI tools effectively. The performance as exhibited by them is:
- 97% of orders delivered to customers complete and on time,
- 95% of orders received from suppliers complete and on time
- Total Landed Costs decreased by 5.5%
- The frequency of out of stocks decreased by 7.3%
The competitive maturity assessment of Best In Class companies are:
- 56% more likely than all other companies to perform root cause analysis of supply chain problems
- 97% more likely than all other companies to be using supplier/carrier performance scorecards
- 13% more likely than Industry average and 2.68 times as likely as Laggards to have automated capabilities to conduct complex analysis
- Almost twice as likely as all other companies to leverage role based visibility within the organization and to external partners.
Pervasive and Role-Based BI
Let us have practical look at some of the above terms:
Business Intelligence vs Pervasive Business Intelligence
The traditional BI, practiced a few years back, empowered only a certain section of the enterprise professionals; now it has evolved in to a stage where it is empowering the whole of organization employees and its stake holders. This is called as Pervasive Business Intelligence and it is offering enormous benefits, like:
- Power to all to contribute and enhance the KPI ( Key Performance Metrics )
- Empower all with data required to take right decisions
- Create a climate where in every one can go for best practice.
Role-Based Model- The right data for the right person
As we have seen in Pervasive BI, all the stake holders are empowered with the great tool, called BI. But there are layers in the organization. There are people with strategic power, operational power and tactical power. For example, if we take strategically powered people, they are in the rank of President, MD, CEO etc., who needs to look BI at consolidated board level view. At the business functional level, there are Marketing, Operations, Sales, HR, Finance departments. So, the Role Based model powers the right person with the right kind of data and intelligence.
Supply Chain Intelligence:
Supply chain being the critical link in any business, applying the BI technology right paves way for its full usage. The only way that BI can be applied effectively is that it needs to be spread across the organization (pervasive), giving the right control to the right person (role-based) with visibility. Companies that provide executives and top level managers with insights in to business level and operational metrics are better positioned to improve supply chain performance. At the knowledge level, timing, granularity of data, and exchange of accurate information is essential. At technology level, a perfect integration with all systems and process is required. Use of internal dashboards and external scorecards is must. These steps will lead to Supply Chain Management to next level, for sure.