For the manufacturing industry, data is a powerful tool that can help improve productivity, efficiency, and quality. However, unlike other industries such as information technology and finance, where data has always been an integral part of the business process, for manufacturing, it is still a relatively new concept. This makes it all the more important for manufacturers to understand how business intelligence can be used to their advantage. Here are just some ways in which BI can benefit your company’s performance:
Business intelligence can help you to make better decisions. With the right information, you’ll be able to plan for future events and allocate resources more efficiently.
For example, Knowing all the relevant information about your suppliers means you can foresee whether a certain raw material will be available on time or if it will cause a production delay. You’ll also be able to see which suppliers are performing well and which ones need some help. In this way, BI can help you to stay one step ahead of the competition by ensuring that your plans are more accurate and comprehensive than ever before.
This planning benefit has a trickle-down effect on the rest of the organization as it helps warehouse workers keep things organized, accountants stay on top of financial records, and other support staff stay up to date with business operations.
One of the most important benefits of BI in manufacturing is that it helps relevant departments connect via easy-to-understand data. This means that all of your teams can work together more efficiently and effectively. For example, if a warehouse worker finds that they have too many parts in stock and not enough demand for them to be used, they can use BI to let production know so that they can adjust their plans accordingly.
It also significantly improves customer experience by letting customers know when key parts are going to be shipped out and when their orders will arrive. This helps them plan ahead so that they can avoid delays in production cycles.
Furthermore, BI also lets you effectively communicate with other stakeholders and other organizations in the supply chain, such as end users, vendors, and relevant independent contractors.
Better decision making
One of the biggest benefits of business intelligence is that it allows you to make better data-backed decisions. In the manufacturing industry, this is a huge asset – especially when you’re working with complex, high-volume processes. You can use BI to make decisions that affect the entire organization, such as which equipment to buy for a new plant or which supplier will give you the best price per unit.
This is all enabled because BI solutions present data in a way that is easy to understand and digest for everyone in the supply chain, from dedicated analysts to warehouse workers. You can look at everything from simple metrics like sales and costs to more complex data models that show how different variables interact.
Efficiency is another key attribute of a good manufacturing operation that BI can be utilized. It’s used to improve operations and reduce waste, which leads to increased productivity and profitability.
Track productivity: For example, if you’re looking at how long it takes a certain machine or process to produce an item and want to know why it’s taking so long, you can use simple BI tools like Excel on your mobile device (or desktop) to pull up historical data on production times for other products made with the same equipment.
Reduce downtime: You can use BI tools to identify equipment that needs repairs before it fails. This can help you prevent costly downtime and improve your overall operational integrity. Over time, this could help you improve your bottom line.
Streamline supply chain: BI can also be used to identify new opportunities for increased profitability, such as finding a new supplier or product line that will increase your sales volume or reduce the overall manufacturing cost.
Business intelligence can help manufacturers reduce costs. For example, a manufacturer who uses business intelligence will be able to:
- Accurately forecast demand and production requirements in real-time. This reduces the need for excess inventories that lead to unnecessary expenditures, which can be costly.
- Make better decisions about production processes, leading to higher-quality products at a lower cost.
- Use advanced analytics to identify and improve inefficiencies which can improve profitability by increasing revenue per unit.
- Lessen penalties or fines related to downtimes that cause lost productivity.
Better customer service
The customer experience is a critical component of manufacturing and can be the determining factor between success and failure. A successful manufacturer will have a good understanding of what their customers need, want and expect from them. They will also know how to deliver on these expectations efficiently and effectively. By doing so, they cultivate repeat customers, which can be one of the most important factors in revenue growth.
BI also helps you keep track of all your customer interactions so that you can understand what they like about your product, allowing you to make improvements where necessary in order to optimize it for your customers. BI enables manufacturers to monitor market trends, competitor strategies, and customer preferences. This information helps them identify new market opportunities, develop competitive pricing strategies, and adapt their products to meet customer demands effectively
Manufacturing businesses benefit from BI in more ways than one. For instance, it helps them to improve their product design, optimize the manufacturing process and increase productivity. It also allows them to better understand how customers interact with their products, which can help them make changes that will improve the user experience.
And if you want to experience these benefits for your manufacturing business, the best thing you can do is to get in touch with an expert. You can contact us today and discuss your needs, as well as our range of BI solutions.