The supply chain industry today is in a state of transition. It has undergone a paradigm shift towards being an extremely important aspect of the overall business strategies.
Logistics & Distribution run at a very high pace and need constant improvement to out beat the competition. There is no time to analyze data from cumbersome excel files. Leaders need visual data that depicts strengths or shortcomings of their business and in a way such that they can take immediate corrective actions.
Role of Business Intelligence
To provide value added services, remove bottlenecks and continuously improve business processes; Logistics Service Providers (LSPs) need to constantly collect and analyze operational data and translate it to actionable information. Key Process Indicators (KPIs) can deliver this fact based information in a unified view of the entire supply chain.
KPI metrics reflect the key drivers of supply chains and translate to information that can improve the top and bottom line. This metrics can be presented as visual charts and dashboards to the top management to support fact based decisions. A proactive approach would be to have alerts that trigger if any KPI reaches the threshold level.
Dashboards that provide real time information
A good dashboard has different sets of KPIs for each user or function, where each metric can be drilled down to get the data behind the information.
- A transparent supply chain with visibility at each stage
- Reduced costs through better control of inventory and distribution
- Improved sales performance through trend based forecasting
Logistics Service Providers are strategic partners who can play a pivotal role in optimizing the supply chain, reducing the cycle time and providing unprecedented customer service resulting in sustained competitive advantage to the customers.