Disruption to the supply chain is expected, but this doesn’t have to mean your business suffers from constant interruptions. By implementing Business Intelligence in your operations, you’ll be able to create more resilience in your supply chain to better adapt to unexpected changes.
What is Business Intelligence?
This is a form of software that is used to gather your business data and present it in a much more user-friendly manner. The data types extracted include historical and current data from both in-house and external sources. Once this has been collated, it can then be displayed in the form of easy-to-use reports, charts, graphs, and dashboards. This information provides invaluable insights into how the business and supply chain is performing, what areas are working well, and which areas will need to be addressed for enhanced productivity.
What are the threats to the supply chain?
The reason that Business Intelligence is so important for those working along the supply chain is that threats are constant and ever-evolving. Here’s a quick overview of some of the biggest challenges facing the supply chain in 2023.
- Shortage of labour: Social, political, and economic instability have resulted in labour shortages across the globe which impacts the transportation of goods between parties and results in delays.
- Freight bottlenecks: The six-day Suez Canal blockage by Ever Green in 2021 showed the problem of traffic backups. While this was somewhat of an outlier, these freight bottlenecks and congestion do remain a challenge.
- Port congestion: We’re continuing to see supply chain disruptions through port congestion, particularly at major US ports.
- Legalities: Stringent regulations regarding environmental, social and governance issues will impact the supply chain, particularly with regard to China and Russia.
- Covid-19: The latest XBB.1.5 Covid-19 variant shows that the virus is very much still around and has the potential to threaten the supply chain.
How can Business Intelligence assist the supply chain?
With these threats in mind, it’s time to look at Business Intelligence and how it can help your business and supply chain withstand the risks involved.
1. Improved communication
One of the best ways to streamline the supply chain is to ensure oversight in the distribution process. When you implement Business Intelligence software, you’re able to track and monitor the status of all your orders, from packaging and warehousing through to distribution. This is because your communication is drastically improved and you’re able to benefit from real-time updates.
2. Monitor expenses
With the oversight afforded to your company through Business Intelligence, you’re able to track where bottlenecks are emerging; as well as monitor expenses related to fuel and suppliers. This means more chances for identifying opportunities to put your business on a better path in 2023.
3. Inventory management
Business Intelligence also allows you to check which inventory is moving fast, and which isn’t, providing valuable insight into customer behaviour and market demand. You can then better implement demand forecasting, no matter what is happening in the supply chain, thereby optimising trade and improving your profit margins.
4. Track your KPIs
Using your Business Intelligence software, you’re able to better monitor your KPIs (Key Performance Indicators) by customising your dashboards. Some of the KPIs used by businesses to manage the supply chain include:
- Turnover: How efficiently you’re turning invested capital into profit.
- Orders: Getting deliveries to customers on-time and undamaged.
- Timing: Increasing the time between order and delivery.
- Inventory: Tracking which inventory is moving and which isn’t.
- Payments: How quickly you’re receiving payments from customers and paying your suppliers.
5. Optimised visualisation
When you integrate Business Intelligence into your supply chain operations, you’re increasing transparency by optimising the visualisation of each stage in the chain. You have a better idea of how one step impacts the next, what needs to be done to optimise the supply chain, and discover where errors are occurring for immediate adjustments.
6. Data-driven culture
Data is one of the most valuable commodities in modern business, and by integrating Business Intelligence into your organisation, you’re shifting to a much more valuable, data-driven culture. This provides you with all the answers you need on consumer demands, shifting markets, and supply chain challenges so you can adapt your business model accordingly.
Improve your supply chain this year with the latest in Business Intelligence software from Canvas Intelligence.
Read More: The Role of Business Intelligence in the Logistics Sector
