Augmenting the Tactics of Business Intelligence in Manufacturing Industry

Stridely Solutions
5 min readApr 1, 2020


BI for Manufacturing

The manufacturing industry, though one of the most promising, is also the most complicated sector. Whether you consider the vitality of the operations or the sensitivity of the machines, the manufacturing sector keenly scours for tools and technologies that can improve and enhance productivity while reducing costs.

This is where we introduce the terminology of Business Intelligence in the domain of manufacturing. We have seen big data to transform several industries bridging the gap between technology and business. Data now leads the majority of business decisions and it is important for all to reimagine their sector with data analysis being a major part.

What is BI in the Manufacturing Industry?

Leaders of manufacturing organizations need to have an all-round view of operations within the industry. Right from the production to the performance, delivery, and service, everything should be pixel perfect. And this is where experts put to data to use. Though data generation isn’t a new concept, instead organizations have been generating it for years. However, this data has been present in a siloed form with little or no use.

What’s needed is to combine this data to render meaningful insights. Business Intelligence is one such technology that does exactly the same. It owns the ability to comb through the organization’s data, store and organize to turn them into valuable information.

Business Intelligence in the manufacturing sector aims as driving significant insights to aid the manufacturing process. Though some consider it to be a daunting task, in reality, BI accelerates the pace at which operations are executed and also enhances the quality of decisions made.

There are multiple ways in which BI can be embedded in the manufacturing sector. Where some use it to determine the uptime of a machine, few monitor the production rates to schedule delivery and others are more concerned about the performance analysis in real-time. It would not be wrong to state that every manufacturer has their own way of implementing Bi in manufacturing operations.

Does Manufacturing Industry Really Need BI?

One question that surfaces the discussion every now and then is whether the manufacturing industry really needs business Intelligence?

Time traveling to a decade back and now, the manufacturing industry has undergone significant changes. Earlier, processes were done manually with minimal intervention of technology. Today, globalization has hit the industry hard. Industries tend to automate their workforce and digitize operations to reduce the workload, increase productivity while cutting down unwanted costs.

Further, the manufacturing industry is one that is linked with the customers and it is important to adhere to the expectations in order to drive maximum profits. Every day billions are data are generated in the industry, right from the stage of production to delivery, data is created. Till today, this data has been sitting idle in the organization. Business Intelligence aims to use this data to deliver insightful information that can then be used by leaders to make business decisions.

How Business Intelligence Affects Manufacturing Industry?

The perks of investing in BI for the manufacturing sector are many. When used in a fruitful manner, BI can transform the face of the industry in a way that benefits all. Some of the advantages include:

  • Better Decision Making

The first and most important one is informed decision making. It is no doubt that tons of data are generated from across all departments in the manufacturing sector. Business Intelligence tools can help in organizing and managing data from across all sources. Further, this data can then be accessed, studied and interpreted in a way that renders meaningful information. Marketers or business leaders use this information to make decisions strategically reducing the risk associated with the same.

  • Financial Management

Business intelligence tools aren’t limited to drafting data and visualizing information. As a matter of fact, such tools have the ability to study the data and come up with a range of other information. Starting with the P/L to raw material and sales analysis, BI tools excel in all. Using this, leaders can run their data and identify newer avenues that could etch profit and help the industry grow. An in-depth analysis of the cost further helps managers have a better view of the ratio of income vs expenditure. Knowing which areas cost more, they can optimize the same, reducing the overall expenses incurred and enhancing profits.

  • Expand Efficiency

For one, embedding technological tools to carry out significant business operations help managers get rid of their siloed infrastructure. Additionally putting data to use aids in determining the efficiency and the productivity of the team. Resources are allocated properly and alternatives traced for the missing ones. The method of product modeling further ensures that the product development phase does not encompass any kind of errors. Business intelligence tools also help in assessing and evaluating the capacity of a machine and map the requirements, effectively.

  • Enhanced Supply Chain Functionality

Supply chain and the logistics department is one of the most important parts of the manufacturing industry. On-time deliverables and service, quality ensure customer satisfaction and retention. Business intelligence tools are used to assess and analyze the performance of the industry on a day to day basis and come up with insights to ensure on-time delivery. Freight costs are evaluated by tracing changes in the supply-demand ratio. Customer feedback is used to optimize operations ensuring the best in class services.

The Final Word

Business Intelligence is not just a term but a whole gamut of tools and technologies proven to enhance the end to end functionality of operations in the manufacturing industry. It is seen that using BI tools not just improves the industry but also opens up new doors for industrial growth.

Using data to drive business operations followed by the decisions give leaders the ease to automate the task, right from production to sales. For organizations that are still wondering whether to adopt business intelligence tools, it is the time to sway off the doubts and head out on the journey of digital transformation.



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