How Power BI Can be Used in Supply Chain Management

It is not news that the modern business market has come to rely quite a bit on supply chains, i.e., the invisible pipelines that deliver various items to our doorsteps. From sourcing raw components to careful manufacturing, effective warehousing, and so much more. supply chain management has come to underpin success in all these endeavors. This is even though the modern supply chain is nothing less than a mind-boggling dance of various moving parts, where even a minor hitch can set off a cascading type of impact. It is also not surprising to realize that, generally, this complex network generates an immense amount of information even though they are dispersed across different sources and systems. Unfortunately, sifting through all this data to gain clear insights and identify areas for further development is a steady fight. But what if I told you that there exists a tool that could transform all this raw information into an easy-to-understand format and enable informed decision-making? Well, there exists such a tool like Power BI. This Microsoft offering brings immense potential to the domain of supply chain management.

In this blog, then, I will discuss some of the most compelling ways in which Power BI is being used in supply chain management.

Supply Chain Analytics: A Stats-Led Overview

• The global supply chain analytics market is expected to generate revenue of over USD 13.5 billion by the end of 2027
• Experts believe that by 2027, the supply chain market will have gadgets and devices worth over USD 41 billion to collect, analyze, and exchange said data
• 79% of companies with high-performing supply chains realize better revenue growth as compared to the average for the industry

Top Ways in Which Power BI is Used for SCM

• Access to real-time data: Generally, supply chain information resides in siloed systems, thus making it challenging for companies to get a real-time picture of their operations in this context. Power BI overcomes this issue by connecting with different information sources, including ERP frameworks, warehouse management software, and external logistics data. This gives a continually updated perspective on inventory levels, order fulfillment status, and delivery schedule, and that's just the beginning. Suffice it to say that Power BI gives you access to crucial bits of knowledge about potential stockouts or delays, facilitating proactive changes.
• Customized reporting and dashboards: Power BI helps you to make custom reports and dashboards that are customized to your company and business' unique requirements. So, bid farewell to static reports! Instead, picture key metrics such as inventory turnover, on-time delivery stats, and supplier performance in interactive dashboards. These dashboards can be customized for various departments: for example, procurement managers can focus on supplier lead times, while logistics teams can monitor transportation costs.
• Monitor KPIs: You know it is important to define and monitor basic KPIs applicable to your supply chain. Power BI helps you do just that, setting targets and screening performance against those objectives. For example, keeping a close eye on on-time delivery rates or inventory transport costs. You can also take a closer look into specific aspects of the business to identify bottlenecks and new development opportunities.
• Risk identification and management: Supply chains are intrinsically prone to disturbances and disruptions. Power BI helps in this regard by helping you to distinguish and deal with these risks proactively. It allows you to analyze historical information to recognize trends and anticipate potential issues such as material shortages or transportation delays.

Folks, clearly, supply chain management stands to benefit immensely from Power BI. Go ahead and start looking for an expert Power BI consulting services provider immediately.