Business Intelligence Serving Manufacturing Industry
To overcome this, it is needed to maintain an optimum level of inventory so as to avoid overstock/short-supply and bring innovative and profitable schemes in marketing. Business Intelligence(BI) can help in achieving this.
BI helps in keeping managers updated / equipped with state-of-the art and exact information that helps in taking critical business decisions than relying on assumptions.
Manufacturers use Business Intelligence software to improve visibility and communication across their increasingly complex supply chains, while satisfying customer demands for new products and product enhancements. The prime areas of concern are
- Having a bird’s eye-view of the customer information which helps the sales team to coordinate and collaborate customer interactions.
- Trace the metrics and indicators that improve customer satisfaction.
- Lead time to fulfill customer orders across sales and distribution channels.
- Improve “order promising” (Delivery or issue resolution for a customer) through analysis of historical statistics, expected lead time, and inventory levels.
- Analysis of current usage of products to determine the new range of products.
- Tracking service, to better predict and prepare inventory and production levels.
- Benchmark distributors, regions, and individual locations against each other in an attempt to foster increased attention to goals and metrics, as well as reward high performers and aid underachievers.
Some of the areas where BI Solutions can be applied in Manufacturing are:
Supply Chain and Order Management: Oracle Supply Chain and Order Management Analytics delivers deep customer insight into order and inventory data to make better decisions in each stage of the order lifecycle. It enables one to assess inventory levels, determine likely product fulfillment needs before the order has been booked, quickly identify potential order backlog issues, and stay on top of critical accounts receivable (A/R) and daily sales outstanding (DSO) issues. By leveraging actionable and fact-based insights, one can transform their current Supply Chain and Order Management processes to improve financial performance and customer satisfaction.
Financial Management: Oracle Financial Analytics helps front-line managers improve financial performance with complete, up-to-the-minute information on their department's expenses and revenue contributions. KPI’s and reports enable financial managers to improve cash flow, lower costs, and increase profitability while maintaining more accurate, timely, and transparent financial reporting that helps ensure Sarbanes-Oxley compliance.
Procurement and Spend: Oracle Procurement & Spend Analytics is useful to optimize supply side performance by integrating data from across the enterprise value chain enabling executives, managers, and frontline employees to make more informed decisions. It increases visibility into the complete procure-to-pay process, including comprehensive spend and procurement analysis, supplier performance analysis, supplier payables analysis, and employee expense analysis. Through complete end-to-end insight into the factors that impact company performance, one can significantly reduce costs, enhance profitability, increase customer satisfaction, and gain competitive advantage.
Using these analytics helps assess cash-management and monitor operational effectiveness of the payables department to ensure lowest transaction costs; Identify most profitable customers, products, and channels, and understand profitability drivers across regions, divisions, and profit centers; Improve inventory management for those products that consistently fall into backlog due to a lack of appropriate stock levels, Gain visibility into inventory activities to minimize unnecessary expenditures and optimize inventory to conserve working capital; Gain detailed visibility into direct and indirect spending, and identify opportunities for consolidation and reduction of costs; Monitor price, delivery, and product quality to determine the best and worst performing suppliers.
This blog has inputs from Neeraj Jha who is a Consultant with the Oracle Business Intelligence Practice at Infosys. His areas of interest include Packaged BI Applications and Process Consulting.
