Today’s manufacturers face many unique challenges. Globalization, product diversification, and increasingly complex supply chains make it difficult for them to achieve a complete, unhindered view of their entire operation.
Where does the problem lie? Few manufacturers have standardized on their back-end applications. Different business units may be using different help desk/customer support solutions, each shop floor may have its own automated production system in place, and sales teams in different countries may be using disparate sales force automation software packages. Without a business intelligence tool in place, these organizations will struggle to consolidate all this silo’ed data, and gain true insight into the factors that drive the success of their business.
Business intelligence can offer tremendous advantages to companies of all sizes in the manufacturing sector. While virtually any core process can be enhanced through the use of a BI tool, some of the greatest value can be achieved in the following areas:
Global operation management
Companies are expanding around the world, opening new
manufacturing plants and sales offices in various international locations. However, many are also relying on mergers
and acquisitions to facilitate this kind of global expansion. This makes system integration a
harrowing task – one that can take years to complete. Until then, manufacturers can utilize a business
intelligence solution to obtain a consolidated view of all the mission-critical
activities that take place daily at sites around the globe.
Supply chain management
Supply chains are becoming more and more sophisticated, as manufacturers work with more vendors, distributors, and logistics partners than ever before. In order to ensure the most effective and efficient supply chain operations possible, information must be seamlessly shared among all stakeholders. This will enable the rapid detection of cost-cutting opportunities, areas in need of improvement, and major problems that require immediate attention. BI systems can enable this kind of collaboration and real-time data sharing, providing all supply chain partners with a comprehensive, 360 degree view of all work in progress.
Inventory management
Many firms are implementing just-in-time inventory models to
keep expenses at a minimum.
However, in order for this approach to work, procurement professionals
must know immediately when parts and components need to be reordered. The dynamic alert capabilities within
most business intelligence solutions can ensure that buyers are instantly
notified when inventory dips below desired thresholds. So, all components needed for
production are always on hand.
Additionally, a BI tool can enable more accurate demand planning, helping companies avoid the kind of excess inventory of finished goods that can waste space and money. By allowing for the consolidation of sales forecast and pipeline information from the various disparate systems maintained by a globally-distributed sales force, a business intelligence application can provide more precise insight into anticipated sales orders, so production levels can be set accordingly.
Quality assurance
Nothing negatively impacts customer satisfaction and retention – not to mention reputation and “word of mouth” – than poor product quality. Yet achieving full visibility into the factors that affect how well products are made can be difficult. A business intelligence software package can make that kind of insight a reality, allowing for in-depth analysis of all production and QA processes, so vital patterns and trends can be uncovered, and issues can be corrected as quickly as possible.