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2006.03.17
Supply Chain Business Intelligence Applications - Return on Investment
The recognized value of many implemented supply chain business intelligence, (BI) applications is often poorly tracked, as there is little knowledge about how these solutions actually support different decisions and processes. When evaluating supply chain BI applications, analytics, metrics and alerts should be part of the standard supply chain BI solutions in order to increase the benefits of BI and thus prove the Return on Investment. (ROI).

Hopefully, most software implementations have a well-founded business case behind them that explains why the given solution is being put into place. When preparing such a business case, it is important to choose financial and/or operational metrics that measure the effectiveness of the chosen solution. If no such metric is used, it will be difficult to ensure a positive payback on the investment. For instance, if a supply chain visibility software solution is required, it is important to know what aspects of the supply chain need to be monitored and measured. Is the organization having issues with product throughput, perfect order fulfillment measurements, labor efficiencies, inventory turns or some other area of the supply chain?

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