Business Intelligence is the set of processes and tools that allow you to process data from business processes to transform them into information that is significant for the strategic development of the company. The latest generation ERP software features integrated Business Intelligence functions that take data directly from the database of the company information system. We have already talked about the importance of building a data-driven culture also in SMEs and the advantages of the integration between Business Intelligence system and ERP software; in this article we want to focus on 5 benefits, often underestimated, that a good BI strategy can bring to footwear and clothing companies and, in general, to manufacturing companies.
Analyze the performance of suppliers
The analysis of the supply data helps us to understand the cost and efficiency of each component within the production cycle: this is a very important aspect of the value creation process, but is often underestimated. Without an analysis system it is difficult to realize how often defective supplies arrive or how much one supplier is actually better than another in global terms: in fact, often it is data that taken individually are apparently small, but that make the difference on large numbers.
Using ERP to conduct an in-depth analysis of incoming supplies and relationships with suppliers is useful in identifying these small flaws before the consequences are evident.
Create systems capable of self-correction
An error in any phase of the production process generates more or less important losses. Is it possible to eliminate errors entirely? No: people are wrong, machines break down. Both improve over time, but continue to make mistakes and break. Even in this case, however, Business Intelligence helps us, because through the analysis of business processes we can identify the most frequent errors and failures and try to prevent them or, at the very least, be ready to solve them in the shortest possible time damaging the damage. In practice, knowing the possible weaknesses of a system allows us to transform traditional reactive solutions into proactive solutions: faster, more efficient.
To learn more about this aspect you can read: ERP to identify waste and increase business productivity
Monitor the use and efficiency of the production plants
Lost time is one of the biggest enemies of productivity. A momentarily stopped production facility is the king of lost time. Usually this happens due to lack of coordination, in particular because the materials are lacking or because the previous production phase has not ended within the expected time. In any case, this is a problem that can be solved by using automated production planning systems.
The integration between production planning systems and Business Intelligence allows to monitor in real time the functioning of the production lines both at micro and macro level. Understanding how the downtime of a single machine can affect the entire production, or how a different organizational model can improve overall efficiency is essential to increase a company’s profit margins.
To deepen this aspect you can read: Production planning and Customized ERP Software’s in Dubai for manufacturing companies
Get better demand forecasts for products
Predicting the trend of demand is fundamental for improving business management: both at the human resources and machinery level and at the warehouse level. Most companies base these forecasts only on the historical values of previous years, without combining them with real-time data. The integration between these two types of data, on the other hand, allows you to build a more precise projection of what the purchasing trends will be and to plan production more efficiently.
To learn more about this aspect you can read ERP and marketing: technology at the service of strategy
Optimize warehouse management
Another sometimes overlooked aspect of the production process is storage. Lack of materials or, on the contrary, surplus raw materials, or goods ready to be shipped that occupy the warehouse for days represent a cost. The integration of three ERP and BI allows to analyze these phenomena and to predict the production trend in order to optimize the incoming and outgoing flows of the goods.
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