In our previous blog post BI to achieve Supply Chain Control we referenced the Capgemini Global Supply Chain Control Towers article. In this, analysts describe supply chain visibility as “the key enabler for managing a business both within organisational boundaries as well as across the boundaries”. It is therefore no surprise that enhanced supply chain visibility is seen as a critical component for improving business performance, reducing costs, and creating competitive advantage in a situation of significant economic pressure. In this article, we will aim to demonstrate how a BI tool can support this process and improve supply chain visibility.
Firstly, newer BI solutions such as InetSoft are intuitive. Through a process of exploration, it is possible to define and set appropriate supply chain metrics to effectively monitor, assess, and control business performance. In creating a benchmark against which to reference expectations, the organisation can closely track any deviation and take reparatory action to bring the variance back into alignment. By developing these KPIs to measure performance, a BI tool therefore helps to understand the business in a more meaningful way, aiding supply chain visibility. This may include introducing measures such as machine efficiency, labour productivity, defect levels, customer service, waste or downgrade, and supplier delivery performance. Once these metrics are established, minimum target levels and the resultant performance against them can be communicated both internally and externally, improving understanding of requirements and any gaps, whilst driving greater accountability and transparency throughout. This in turn aids a more informed decision making process, directing attention to those areas requiring greatest focus.
Secondly, BI solutions such as InetSoft permit access to a diverse range of information sources real time and on the fly, something that has become increasingly important given the sheer quantity of data now available to organisations. In their recent study “Levelling the playing field. How companies use data for competitive advantage” the Economist Intelligence Unit found that of those businesses surveyed, only 17% of companies use 75% or more of the data they gather. Topping the key facets, 81% said that accuracy was “very important”, closely followed by timeliness at 71%. InetSoft BI tool supports both accuracy and timeliness to feed improved supply chain visibility in the following ways:
1) InetSoft BI permit access to data at the source and real time, is not constrained by complex predefined data structures or lengthy ETL processes, and can be used to present data from several sources into a single intelligible view than can be acted upon. This real time link with a proliferation of previously inaccessible information sources both internal and external to the organisation, enhances supply chain visibility, supports a swifter time to response, and facilitates a more informed decision making process. Right time.
2) In terms of accuracy, as data is accessed directly at the source, rather than being manipulated or massaged manually outside, there is less opportunity for error. Taking the example of spreadsheets, many enterprises are still heavily reliant upon their use for data capture, analysis, and reporting purposes. They are relatively straightforward to use, and require minimal IT involvement so remain popular. They do however come with inherent problems; they are heavily labour intensive, subject to poor version control if passed between departments, are prone to manual error, can lead to several ‘versions of the truth’, and often suffer from update issues when linking several workbooks together. The result? The lack of a single reliable view upon which to make critical business decisions, limited trust in available data within the organisation, and the creation of informational silos as individuals use their own personal spreadsheets. This supports the Economist Intelligence Unit findings, in that eight in ten respondents commented that they were without effective processes to share data. BI tools overcome this issue in that they are cross functional, aligning data from several different sources into a single stream, whilst standardizing the means in which data is extracted and reported upon (using automated analysis/ collection). This provides more reliable detail to the end user, and has the effect of actively encouraging individuals to utilise and share the plethora of available detail. Right information. Increased supply chain visibility.
Finally, today’s BI solutions are focused on putting the right detail in the hands of the right individuals ie those best equipped to analyse, interpret, and act upon any findings. Through visual dashboards, push notifications or alerts, and by presenting the end user with only that detail which is relevant to them and in a format that is easily understood, supply chain visibility is improved. As is time to response. The fact that these tools are easy to use, and are no longer solely the domain of senior managers using information at a strategic level, allows those individuals at an operational level to more actively engage with the software, encouraging acceptance, and increased use.
In summary, putting the right detail in the hands of the right people at the right time, equals enhanced supply chain visibility and indeed enhanced visibility across the wider organisation.
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