Why Supply Chains Need Business Intelligence

Companies that want to effectively manage their supply chain must invest in business intelligence (BI) software, according to a recent Aberdeen Group survey of supply chain professionals. Survey respondents reported the main issues that drive BI initiatives include increased global operations complexity; lack of visibility into the supply chain; a need to improve top-line revenue; and increased exposure to risk in the supply chain. Fluctuating fuel costs, import/export restrictions and challenges, and thin profit margins are driving the need for businesses to clearly understand all the factors that affect their bottom line.

Business Intelligence essentially means converting the sea of data into knowledge for effective business use. Organizations have huge operational data that can be used for trend analysis and business strategies. To operate more efficiently, increase revenues, and foster collaboration among trading partners companies should implement BI software that illuminates the meaning behind the data.

There is a vast amount of data to collect and track within a supply chain, such as transportation costs, repair costs, key performance indicators on suppliers and carriers, and maintenance trends. Being able to drill down into this information to perform analysis and observe historical trends gives companies the game-changing information they need to transform their business.

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How to Better Manage Supply Chain Climate Risks

Supply chains are responsible for up to four times the greenhouse gas emissions of a company’s direct operations and yet half of major companies’ key suppliers don’t provide requested climate data to their corporate customers, according to a study produced by CDP and written in partnership with BSR.

The report also gives examples of ways companies can encourage supplier performance. It says L’Oréal works with CDP to create supplier climate scorecards that can be easily understood in the purchasing department.

Additionally, Coca-Cola and Lego Group are both experimenting with incentives and training for suppliers that aim to improve climate performance. Coca-Cola, for example, encourages suppliers to implement sustainable agricultural practices, reduce material used in packaging, and reduce the carbon footprint of vending machines. Lego Group LEGO Group is hosting “innovation camps” that the report says not only identify projects to reduce CO2 emissions, they also strengthen partnerships with suppliers.

Read more at How to Better Manage Supply Chain Climate Risks

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