BUSINESS INTELLIGENCE

AND
SUPPLY CHAIN
MANAGEMENT
PRESENTED BY,
ANOOPA NARAYANAN
S3 MBA(IB)
ROLL NO.4
 INTRODUCTION

•A supply chain is a system of organizations, people, technology,

activities, information and resources involved in moving a product
or service from supplier to customer.

•Supply chain activities transform natural resources, raw materials

and components into a finished product that is delivered to the end
customer.

• Legacy supply chains are clogged with unnecessary steps

•SCM enables
order processing
just-in-time inventory management,
timely order fulfillment.

•The main objective of SCM is to manage supply chain process

efficiently

•To achieve this firms - turning to Internet technologies to Web

enabled supply chain processes, decision making, and information
flows.
• The role of information technology in SCM -support with inter-
enterprise information systems -manage its supply chain
effectively.

The IT enabled SCM

•Reduce costs
•Increase efficiency
• Improve their supply chain cycle times
 BUSINESS INTELLIGENCE

•Mainly refers to computer-based techniques used in identifying,

extracting and analyzing business data, such as sales revenue by
products and/or departments, or by associated costs and incomes.

•BI technologies provide historical, current and predictive views of

business operations.

•In broader terms, business intelligence involves the integration of

core information with meaningful business information to detect
significant events and discover new business scenarios and predict
business situations.
•It includes the
• ability to monitor business trends
• to evolve and adapt quickly as situations change
• to make intelligent business decisions on uncertain
judgments and contradictory information.

•BI, is an umbrella term that refers to a variety of software

applications used to analyze an organization’s raw data.

•BI solutions at the enterprise level are charged with collecting

and reporting a company’s most important metrics, sometimes
called key performance indicators (KPIs).
 A BI software solution brings together key BI capabilities
to measure and monitor performance, such as
• Dashboards
• Scorecards.
• Analysis,
• Reports

Dashboards

 A collection of graphical elements that give you a quick snapshot

of how your organisation is performing and its future

 Include charts, graphs, gauges and tables

 Scorecards:

A collection of metrics such as revenue and cash flow that are used
to measure an organization’s performance against target

Shows how the business is doing and where you need to focus.

highlight what you had aimed to achieve, and what the difference is
between objectives and results.

Scorecards measure each key performance indicator (KPI) against

target, with the results compared with the previous time period.
  Analysis:

 “slice and dice” or OLAP (online analytical processing)

 Used for instant analysis of large amounts of data, regardless of

which business system it comes from.

 reveal trends that might not be discovered easily by viewing

standard reports – to identify trends, problems and opportunities.

 help to quickly investigate multiple dimensions, such as revenue

per product or service, per region, per year.
 Reports:

Allows employees at all levels to pull information from an

organization’s business systems for day-to-day operations and
decision-making.

The production of structured, formal reports such as board reports

and profit and loss (P&L) reports enables information to be
delivered in a standard format.

relational reporting -is focused on producing reports, and is

referred to as.
 SCOPE OF BUSINESS INTELLIGENCE

•Business Intelligence (BI) integrates and consolidates information

in an organization and supports supply chain management.

•The emphasis –
not on the data itself- on the business processes that generate
the data.

•Allow for business process optimization.

•The need for BI

• growing interest in real time data access

which required effective tools to mine and
analyze dramatically increased data
volumes.

• The customer demands raise, for high

quality product and services at the right
place and in time
• BI provides

• a set of technologies and products for supplying users with the

information they need to answer business questions, and make
tactical and strategic business decisions.
 BENEFITS OF BI ENABLED SCM

•Reduces inventory levels

•Analyses customer service levels to identify niche problem

areas.

•improve customer service performance

•The concept of demand forecasting and forecasting

accuracy is achieved to great extent.

•Analyze the transport performance for reducing the cost.

 BENEFITS OF BI ENABLED SCM cont….

• develop and share vendor scorecards (very effective

tool to both monitor and manage suppliers), and
customer service metrics

• provide customers, vendors and third party service

providers with visibility into the status of orders,
inventory, returns, delivery performance and other key
operational parameters.

•Effective execution of the extended supply chain

 BENEFITS OF BI ENABLED SCM cont….

•determine optimal order quantities and set up in business

systems to minimize costs.

•intelligence techniques used for inventory control include

complicated cost-value equations and historical and demand
forecasting.

•determine whether the supply chain is equipped to maintain

uninterrupted supply of products and manage distribution of
finished goods at the lowest cost possible.
 BENEFITS OF BI ENABLED SCM cont….

•Better and effective data management better decisions.

•Increases the return on applications of SCM

• Prediction to make companies understand where and how to

make the right move

•Provides shared data availability that encourages business

performance.
 BENEFITS OF BI ENABLED SCM cont….

•Provides the capability to reveal opportunities to cut costs,

stimulate revenue, and increase customer.

•Provides a single view across supply chain and includes

prepackaged key performance indicators (KPI), analytics.

•Helps an organization on the primary drivers behind supply

chain processes-planning, procurement, manufacturing,
logistics, and returns.
 BENEFITS OF BI ENABLED SCM cont….

•Can analyze and act to increase the supply chain efficiency

•BI analysis will be in line to a business process

•Powerful engine that hooks into all sorts of processes and

work flows to monitor anomalies and changes in trends in
supply chain.

•Automate adjustments instead of alerting people.

The main reasons that organisations choose to use Business
Intelligence are to:

1. Improve data accuracy and minimise errors

2. Reduce time and cost spent creating reports
3. Enable fact-based decision-making
4. Detect issues and opportunities
5. Provide self-service information at any time
6. Improve performance
7. Monitor and control business objectives
 
1. Improve data accuracy and minimise errors:

•An online, centralized system for reporting can improve the accuracy
and speed of your reporting and analysis.

2. Reduce manual reports and processes with automation:

•BI lets you automate the reporting process in a central system that
can be accessed across the business.
3. Enable fact-based decision-making:

•With accurate organisation information at their fingertips,

employees at all levels can make more informed decisions to
maximise performance.

4. Proactively detect issues and opportunities at the earliest

possible stage:

•When objectives aren’t met, a tailored BI solution alerts and allows

you to analyse, understand and report on the underlying problems.
5. Provide self-service information:

•No need to make successive requests through others who may have
alternate priorities or limited resources at peak times.

6. Provide a shared understanding across the organisation:

• Employees need a clear, consistent view of the organisation to

make decisions that will improve performance.
7. Focus your business and ensure plans are executed:

•A central system means that plans can be reviewed hourly,

daily, weekly – not just once a month or once a quarter.
The main barriers to BI adoption are:

cost
complexity

• BI vendors were unable to demonstrate the benefits of BI to internal

stakeholders.
 EXAMPLES OF COMPANIES USING BI IN SCM

i. The Web-based BI enabled SCM system has enabled

Modern Plastics to see what its customers need on a real-
time basis..

ii. In retail, Wal-Mart uses vast amounts of data and

category analysis to dominate the industry.

iii. Amazon and Yahoo

iv. Restaurant chains such as

Hardee’s
Wendy’s,
Ruby Tuesday
T.G.I. Friday’s etc..
Some of the impacts of BI claimed by providers

•A manufacturing company cut the cost of new

customer acquisition by 20%

•Employee satisfaction increased 14% in a

healthcare company

•Employee satisfaction scores for a healthcare provider

increased from 88% to 93% and employee retention
increased 9% within one year
•A BI-developed coalition marketing program for the food
industry has acquired more than 142,000 members in the US,
Canada and the UK in the last five years

•A telecommunications company reduced churn by 22% and

decreased downgrades by 44%.
 CONCLUSION

•Business Intelligence (BI) integrates and consolidates

information in an organization and supports supply chain
management.

•With accurate organisation information at their fingertips,

employees at all levels can make more informed decisions to
maximise performance.

•Firms can build their effective SCM process with BI

THANK YOU