Langlois, A., & Chauvel, B. (2017). The impact of supply chain management on business intelligence. Journal of Intelligence Studies in Business , 7 (2), 51-61.
Statement of Author’s Purpose
Langlois and Chauvel (2017) in the Impact of Supply Chain Management on Business Intelligence examine the effect of supply chain management (SCM) on business intelligence (BI). They look at mutual benefits of concepts of supply chain and business intelligence to a business, especially in private companies. Because the supply chain involves numerous samples of data gathered from the supplier to consumer, they conclude that business intelligence is undoubtedly an extension of SCM. The cultural, managerial, and technical competence of business intelligence impact supply chain performance positively.
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Background of the Issue
For the most part, there is a continuous increase in the demand of customers for high-quality commodities. As such, in order to gain a competitive advantage, a company should consider itself as part of a supply chain. This will enable them to cater to the needs of consumers and, at the same time, minimize the cost and time of the process of production. According to Langlois and Chauvel (2017), for companies to gain access to large business-related information, they should utilize business intelligence. Because business intelligence supplies a company with vital data, it can also be applied in SCM. However, because it is hard to comprehend the concepts of business intelligence, and it is further expensive to implement it, many companies shun away from using it.
Through the extensive literature review, Langlois and Chauvel (2017) found that presently, numerous companies utilize BI to gather data quickly as well as efficiently. Data from BI is also available promptly. Thus, the data obtained can be used in decision-making. BI has several benefits in each supply chain function. First, BI tools detect as well as solve issues. Second, they help to minimize waste by showing the non-efficient parts of the SC. Third, with BI, the performance and efficiency of the supply chain are enhanced. Therefore, as an organization grows, it requires a sophisticated supply chain with crucial BI tools to gather the information that will help suppliers, partners, as well as employees do their jobs effectively.
Applications of Supply Chain Management Theory Relevant to the Article
Presently, many businesses employ business intelligence to gain a competitive advantage. According to Frankenfield (2019), business intelligence implies the technical as well as procedural infrastructure that gathers, stores, along with critically examining the data obtained by the activities of a corporation. BI, generally, involves the mining of data, performance benchmarking, process analysis, and descriptive analytics. BI generates data reports, trends, and performance measures that are useful in informing the decisions of the management of an entity (Frankenfield, 2019).
In the article, Business Intelligence in Supply chain Management, Ghosh (2016) argues that business intelligence is crucial in SCM as it enables organizations to convert data into meaningful information. Because companies are presented with vast information, mainly due to the adoption of supply chain execution systems, warehouse management solutions, and many others, BI enables them to only focus on the most paramount information. Generally, data access is vital; however, at the same time, being able to locate, comprehend, as well as utilize that data to make strategic decisions that enhance the effectiveness of SC is essential (Ghosh, 2016). In this light, using BI tools is imperative as they provide data that can be easily understood, and additionally, it is presented more visually. Additionally, BI enables actionable visibility to information concerning cost together with performance. As a result, there is results optimization. Ghosh (2016) further states that incorporating BI in SCM enables companies to reshape the process of decision making as well as improve performance.
Managerial Implications
Given that BI implementation is paramount for the whole process of supply chain management, it is essential for managers to use BI in their SCM. For supply chain management, it is advisable for managers to use BI tools that fall under these categories: real-time dashboards, reporting, and benchmarking. Typically, delivering BI information through reports and real-time dashboards makes it easier for data analysis. Thus, managers should employ these BI tools as the frequency and depth of data available grants the fundamental basis for strategy evaluation as well as process decisions (Ghosh, 2016). There will be an enhancement in the quality of information which will, in turn, translate to better decision making in the part of managers. Also, in order to effectively use BI tools in SCM, managers need to provide extensive training to employees, especially the new ones (Gu, 2014). It is paramount for workers to be trained on how to use the business intelligence techniques because of vast knowledge is needed in this area. More specifically, if companies use a variety of BI tools, managers should provide training so that employees obtain the necessary knowledge of places to collect data and where the data is stored. With training, the employees will be able to know which type of data they have access to and where to find other relevant business data.
Summary
Langlois and Chauvel (2017) in the article, The Impact of Supply Chain Management in Business Intelligence note that data is essential in making company decisions. Because the main objective of SCM is to effectively meet the needs of the customers by ensuring that customers get the right product timely, it is imperative for SCM to use BI tools. BI will enable companies to gather information to enhance the potency of the business and provide easy access to the vital information that suppliers, partners, as well as employees, require to do their job. They conclude that applying BI concepts to SCM supplies strategic information to those who make decisions in corporations. Therefore, it is hard to separate BI from SCM.
References
Frankenfield, J. (2019). Business Intelligence (BI) . Retrieved from https://www.investopedia.com/terms/b/business-intelligence-bi.asp
Ghosh, A. (2016). Business Intelligence in Supply Chain Management. Asian Journal Of Science And Technology , 7 (11). Retrieved from https://www.academia.edu/30830691/BUSINESS_INTELLIGENCE_BI_IN_SUPPLY_CHAIN_MANAGEMENT
Gu, J. (2014). The Use of Business Intelligence Techniques in Supply Chain Performance. Purdue E-Pubs , 1-108. Retrieved from https://docs.lib.purdue.edu/cgi/viewcontent.cgi?article=1469&context=open_access_theses
Langlois, A., & Chauvel, B. (2017). The impact of supply chain management on business intelligence. Journal Of Intelligence Studies In Business , 7 (2), 51-61.
