Supply Chain Business Intelligence: Data Rich vs. Information Poor

Data is everywhere. But it’s how you use and streamline data for your business that makes a difference.

In our podcast episode with Michael Falls, Director for Global Strategic Solutions at enVista, we discussed how shippers can avoid becoming data rich but information-poor.

 

 

Getting started on business intelligence

According to Falls, shippers have access today to more data than at any point in history. With so much data coming from disparate sources, it is challenging to find a common truth and a unified solution. Some of the challenges also include lack of landed cost visibility, product level visibility, profitability, and cost validation.

“Now what is that solution? It’s business intelligence. It’s having a comprehensive platform that provides you with visibility into your all modes global shipping costs and helps you optimize,” Falls shared.

When asked what shippers should consider when starting a business intelligence project, Falls emphasized that the solution depends on your shipping profile which includes your size and shipping costs. He also advised that shippers should understand the data sources they have access to because those sources will be their starting point.

 

Three reasons to prioritize business intelligence for your supply chain

Falls shared three reasons why setting up business intelligence for your supply chain will give you the outcome you need.

 

• Role optimization. This allows you to use business intelligence to automate reporting to eliminate non value-added activity in your associates’ work days. With this in place, your people won’t have to manipulate data. “You’ve got a product or a platform, where you can just use data as intelligence. So there’s no manipulation involved. So that’s business efficiency role optimization,” Falls added.
• Cost optimization. This includes figuring out more efficient ways you can ship which can ultimately cut down your costs while still shipping to your customers in the same amount of time. It also includes reducing non value-added expenses, like post-manifest charges, accessorials, and changing your box sizes among others.
• Service performance optimization. This happens when you use data to change your shipment execution software logic or implement a new transportation management system.

 

When it comes to implementing any business intelligence journey, it’s important to be prepared for any corporate pressures and operational needs. The key, according to Falls, is to find a solution that meets both of those.

“The best approach that a decision-maker can make for their transportation operation is one that probably includes multiple BI solutions,” Falls said. “If your company doesn’t have one today, that’s coming. But that should coexist and complement a transportation BI product that your operational stakeholders can use within your transportation operation and your transportation finance users and stakeholders can use.”

Tune in to Down to Freight podcast, where we sit down with transportation, logistics, supply chain, and warehousing subject matter experts to discuss the Digital Transformation Project.