With the amount of accessible data growing exponentially each day, there is a rising need to leverage the right data management solution. Doing so helps companies translate data into information and plan their future business strategies. Today in this ever-growing market of Analytics and Machine Learning, a BI solution can be of immense help and can act as a foundation to all your data organizational needs. It helps to summarize the data into meaningful, real-time, and fact-based information that both expedites and improves the decision-making process
There have always been conflicts between suppliers and their customers. The strategic sourcing team has the tough job of determining how well each vendor is meeting their requirements. These requirements include not only goods and services, but the information necessary to address evolving business concerns. This need for information is mutual. Whenever there is any change in the customer business structure, suppliers also want to understand what implications it can have on their business. This exchange is made simpler with Business Intelligence
Here are 5 more of the benefits Business Intelligence brings to procurement:
1. Get Relevant Information
One of the most important aspects of making decisions is to have relevant, accurate information. Because reports contain relevant data from different Business operations, business are able to act better based on the information available in these reports. Most of these visualization tools are easily understandable and easy to use as well. As they evolve, they provide for increasingly proactive and strategic decisions.
2. Visualize important InformationWe always trust our eyes when it comes to making critical decisions because anything that is visually evident gives better clarity as compared to something that requires cognitive thinking. The same goes for business. The operational reports can be difficult to interpret and can hamper the ability to identify key metrics. BI enables us to view important information through charts, graphs, videos, animation, etc.
3. Data MiningBI analytical tools are well suited for data mining. Data mining can be categorized into five main steps: collection, warehousing and storage, organization, analysis, and presentation. Some BI platforms can perform all these steps while others require help from other business analytics tool or data warehousing platforms. In general, BI enables us to analyze huge amount of both structured and unstructured data.
4. Identify Important CriteriaCompanies traditionally have used price, quality and on-time delivery as major metrics to evaluate suppliers. But these metrics were mostly based out of subjective judgment rather than on facts because of the data necessary for evaluation were often unavailable or out of date.
With BI you can provide verifiable, real-time metrics. Additionally, a company can also define its own criteria for the evaluation of suppliers. With BI, a business can understand the relative importance of one or more factors over the other depending on the supplier.