How Does Business Intelligence Transform The Manufacturing Industry?

By Author: Bappaditta Jana
Total Articles: 87
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In the digital age, new technologies are gradually but steadily reshaping the manufacturing industry across the globe. It is well known that the manufacturing industry is very complicated, and manufacturers strive hard to cope up with challenges like skilled labor shortage, unstable international economic conditions, etc. They had to consider myriad aspects. They had to make meaningful data connections with the help of new technologies to stay profitable.

Business intelligence or BI is one such technology, which is transforming the manufacturing industry in multiple ways. Despite the widespread adoption of technology, many manufacturers still rely on spreadsheets to make their business or operational decisions. However, BI successfully helps to bridge the gap between various manufacturing processes and decision-making by offering a data-driven approach. Let’s have a look to know how it helps in transforming the manufacturing industry.

Helps in forecasting product demand

Many manufacturers always struggle to meet the demand when suddenly it shoots up. This happens because they fail to anticipate ...
... the increase in demand. Either they have no extra manpower or lack the needful infrastructure and raw materials to eventually do the same. Business intelligence helps to eradicate this persistent problem by forecasting product demand. BI tools work in real-time with advanced reporting features that aid the manufacturers to quickly identify many things. Some of these are the changing customer behavior, change in sales pattern in a certain period or region, current market trends, seasonal changes in demand of certain products, etc. With such information in hand, manufacturers never fail to meet the rising demand. Consequently, there are no losses.

Ends the woes of the supply chain

Quality concerns, increase in fuel prices, natural disasters, and a pandemic can be the problems that manufacturers often experience in their supply chain system. In a supply chain system, there exist multiple departments that have voluminous data. So, manufacturers often experience some woes, such as a lack of visibility and too much data. Business intelligence not only brings together all such data from all sources but also analyzes the same. Tools driven by business intelligence present the data in a manner that makes it easy for manufacturers to quickly spot the supply chain bottlenecks. Thus, it helps to end the supply chain woes that the manufacturing industry needs desperately to work efficiently.

Facilitates management of inventory

Business Intelligence enables manufacturers to know the number of items in their inventory and how they are faring in sales in a specific region or area. Such valuable information via useful insights in inventory reports helps the manufacturers to build optimal plans. Such plans prevent a costly build-up of the inventory.

There are now several tools driven by business intelligence used by manufacturers across the world. Some of these BI tools are user-friendly, affordable, and arrive with an option of a free trial.

Bappaditta Jana is a blogger who loves to spend his free time engaging in sports or gardening. Based in Kolkata, he is currently working with EasyReports an IT firm that has developed a BI reporting tool that can easily integrate with Tally ERP and many other applications.