Efficiency in operations and moving products from A to B at the most cost-effective rate is high on the list of priorities for those in logistics. With competition increasing and the supply chain made more vulnerable by political conflict, the climate crisis, and the pandemic, reaching this target can be a tough ask for those in the industry. However, those who are adopting the latest technology to streamline operations are seeing results. Business Intelligence (BI) software is one such area of technological innovation that’s advancing the logistics sector across the board.
What is Business Intelligence?
BI is a set of processes that allows you to manage and transform the large volume of data generated by your business into visual reports and dashboards containing maps, graphs, charts and more. These visualisations provide you with real-time data and allow you to drill down into granular details, thereby enabling you to derive valuable insights about your business’s performance.
What are the benefits of Business Intelligence in logistics?
BI is impacting every aspect of the supply chain, allowing service providers the chance to easily identify bottlenecks and areas for improved growth, reduce wastage and, most importantly, manage costs. Here’s a look at the benefits of BI in logistics.
1. Increased visibility and accuracy
Gone are the days of waiting for spreadsheets and costly business analysts trying to determine what’s working and what isn’t. With a BI tool, you have access to collated internal and external data from sources such as IoT-sensor devices, e-commerce systems, CRM software, and human resource management software. This massive volume of accurate data provides you with end-to-end visibility, which you can then use in real-time to improve services and address challenges.
2. Improved inventory management
If you’re in the business of storing and managing inventory, then you’re going to want to implement a BI solution into your operations. You understand better than anyone that every item of inventory being stored right now is costing the business money, and that moving it as fast and securely as possible is the best way to increase turnover. Any excess of inventory is costing you in holding fees, while failing to stock sufficient inventory can leave you with unhappy customers – possibly costing you down the line when they go elsewhere. BI provides you with the necessary supply chain management support that allows for better forecasting to prevent overstocking, bottlenecks, and shortages. You’ll have a much better storage flow with BI capabilities.
3. Cost reductions
When you implement a BI tool into your daily operations, you have the ability to drill down into your data, enabling you to identify areas of wastage and implement solutions that lead to cost saving and operational efficiency. In addition, using BI reporting frees up time for your employees as it eliminates the need for excessive amounts of time spent on manual data input and analysis. Your BI software can create auto-generated reports on a daily, weekly, monthly or quarterly basis – depending on your company’s requirements. Staff are then able to redirect their efforts to business-enhancing duties and focus on new areas of growth.
4. Improved responsiveness
Customers and manufacturers want their orders delivered quickly and, if they don’t receive their orders on time, there is a chance you will face lost revenue as they choose to go elsewhere for their logistical requirements. The massive disruption to the supply chain over the past few years has shown just how resilient a company needs to be to survive. While Covid-19 might be dissipating, the climate crisis and extreme weather patterns, political uncertainty, and strike actions aren’t going anywhere. That’s why BI is so beneficial. You have immediate access to data indicating where there might be problems in the supply chain, providing you with enough time to change course and avoid further obstacles. There is more oversight in terms of demand, inventory, and distribution, which means better resilience and improved responsiveness.
5. Increased collaboration
You can ensure that your teams across the supply chain have access to your BI reports so that everyone is on the same page. All users can participate in the preparation and analysis of reports and access the relevant data and valuable insights. It’s simply a matter of adjusting the permission settings so that area managers can access the data needed. With everyone working from the same documentation, there is more cohesion and collaboration along the supply chain.
6. Better decision-making
Finally, with service providers accessing accurate and real-time information, they’re able to make more informed decisions that will drive the business forward. Working off a centralised dashboard that has information sourced from all areas of the supply chain, means your business benefits from better decision-making.
How can Business Intelligence help your logistics operation?
The benefits of BI for logistics are abundantly clear, but here are a few practical examples of how you can implement this process into daily operations.
- Assist in selecting transport and warehousing
Your BI tool will allow you to identify the most efficient service providers in terms of transport and warehousing. Looking at the reports generated over the past few weeks or months, you will quickly pick up which suppliers are performing, and which are not. Considering the costs of supply chain disruption, this is a very useful tool.
- Better supplier sourcing
If you source a variety of components from different suppliers, your BI tool will provide you with an overview that compares the prices and performance of various suppliers. It will also allow you to better coordinate your deliveries so that you don’t risk losing customers.
- Schedules and KPI tracking
Use insights from your BI tool to create schedules for your employees to follow, maximising the efficiency of your production line. This way you’re able to prioritise the production of goods, as well as monitor employee performance through the timely execution of tasks. You can also monitor whether you’re achieving your KPIs by creating customised dashboards.
What needs to be considered when implementing Business Intelligence in logistics?
If you’re looking at BI implementation, then there are a few elements you’ll need to discuss and consider before you choose the right BI tool and provider.
- What is your strategic vision? This will determine what type of BI tool is needed for the success of your logistics operation.
- What is the user experience? You will want a BI tool that provides you with a simple and intuitive user experience – unless it’s being used solely by the IT team, which is unlikely.
- Can it be customised? As your company has its own needs and goals, your BI tool should be able to customise applications that support these needs.
- Can it be integrated? It’s best to get a BI tool that can be integrated into your existing systems so that you have a more seamless operation and access to better data.
- Is there training? Whichever system you choose to use, ensure that the BI vendor provides you with comprehensive training so you’re getting the maximum use out of your investment.
- Is there support? Finally, make sure that your BI provider offers you ongoing support if there are any queries or confusion around the system.
For the ultimate in Business Intelligence solutions for logistics, get in touch with our team at Canvas Intelligence. We have the right tool to deliver insights by connecting you with the right data sources to create clear, customised reports.
Read More: Top 5 Questions to Ask When Choosing a Business Intelligence Tool
