Supply Chain Business Intelligence: Technologies, Issues and Trends Nenad Stefanovic1 and Dusan Stefanovic2
Zastava Automobiles, Information Systems Department, Kragujevac, Serbia email@example.com, www.zastava-automobili.com 2 Faculty of Science, University of Kragujevac, Serbia firstname.lastname@example.org, www.pmf.kg.ac.yu 1
Abstract. Supply chains are complex systems with silos of information that are very difficult to integrate and analyze. The best way to effectively analyze these disparate systems is the use of Business Intelligence (BI). The ability to make and then to process the right decision at the right time in collaboration with the right partners is the definition of the successful use of BI. This chapter discusses the need for Supply Chain Business Intelligence, introduces driving forces for its adoption and describes the supply chain BI architecture. The global supply chain performance measurement system based on the process reference model is described. The main cutting-edge technologies such as service-oriented architecture (SOA), business activity monitoring (BAM), web portals, data mining, and their role in BI systems are also discussed. Finally, key BI trends and technologies that will influence future systems are described.
Introduction – Supply Chain
Competing in today’s business environment precipitates the need for successful integration and collaboration strategies among supply chain partners. The global environment is influenced by increased globalization and outsourcing, mergers, new technologies, and e-business. Shorter time-to-market, reduced product lifecycle, built-to-order strategies, pull systems and uncertainty force organizations to adopt new ways of doing business. There was a lot of pressure on companies to increase profit, decrease cycle times, reduce inventories, improve service and adapt to forthcoming changes. Supply chain management (SCM) as a new management philosophy followed. Supply Chain Management was seen as a tool for gaining competitive advantage through real-time collaboration with trading partners, and offered a new way to rapidly plan, organize, manage, measure and deliver new products or services. Many companies are beginning their search for a solution to implementing an electronically oriented supply chain management system that provides connection to customers and to suppliers. This integrated supply chain may be based on new M. Bramer (Ed.): Artificial Intelligence, LNAI 5640, pp. 217 – 245, 2009. © IFIP International Federation for Information Processing 2009
N. Stefanovic and D. Stefanovic
software solutions or based on enhanced communication capabilities. The ultimate objective is to create a “seamless system interface” that provides the capability to review and analyze varying elements of information. The objectives for analysis of this information are to create a more efficient supply chain characterized by : Increased customer service levels; Decreased transaction costs; More efficient inventory investments; Reduced expenses for manufacturing; Increased responsiveness to customer demands; The ability to fulfill customer requirements more profitably; The ability to deliver high quality products in the shortest time; The ability to deliver products at the lowest cost; The ability to penetrate smaller, fragmented markets cost effectively; Greater linkages with key suppliers; Demand driven logistics; Capacity planning across the supply chain; Sharing of information with key suppliers thus reducing supplier costs. In today’s fast-changing global market organizations need to compete as supply chains, not as single business entities . Additionally, an organization can participate in many supply chains, thus creating a complex supply network of interconnected processes (see Figure 1).
Fig. 1. The Supply Chain
Supply Chain Business Intelligence: Technologies, Issues and Trends
Pushed by globalization and competitive...
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