The modern-day supply chain processes generate enormous amounts of data every day that is often overlooked by most enterprises. According to experts, this data holds immense value that maybe useful to train BI tools and provide advanced analytical insights. Owing to the veracity of business intelligence tools, the SCM data may prove significant to enhance business productivity.
Nevertheless, to drive intelligent decision-making, BI tools require agile access to business data as well as effective means for data storage and retrieval. Considering the sheer volume of data, traditional database systems might not suffice to address the growing requirements of an enterprise. To serve this purpose, enterprises require data warehousing solutions that are conducive to storing and analyzing large volumes of data.
In this blog post, we shed light on the importance of data warehousing solutions for supply chain management. First, let us get familiar with the basic concept of data warehousing in supply chain management.
A data warehouse is a storage architecture that is capable of handling large volumes of data extracted from multiple sources including operational databases and transaction management systems. Being an important part of the ETL methodology, data warehouses store mission-critical business data and provide data in the required format for analytics purposes. At the same time, it maintains a tamper-proof record of business data and keeps it well organized in chronological order. In the following section, we shall delve into the key features of data warehousing solutions for effective supply chain management.
Data warehousing is of foremost importance in supply chain management as it collects and stores essential data related to vendors, supplies, shipments, and finished goods. It stores data records in a tabular format and incorporates multiple querying tools to facilitate the collection and retrieval of data for ETL purposes. Given below are the main features and benefits of data warehousing solutions for effective supply chain management.
Implementing data warehousing solutions in supply chain management renders a secure and efficient means for storing data and feeding it to various BI tools. Data warehouses are designed to automatically fetch data from multiple sources and store it in chronological order for easy retrieval. As such, it forms an essential component of the extract-transform-load (ETL) process by providing data to various BI tools in the required format.
Inventory data is of foremost importance to a manufacturing or supply chain company for obvious reasons. Thus, it requires data-driven software tools and effective database management systems to capitalize on the inventory data. Data warehousing solutions play a critical role in maintaining tamper-proof records of inventory data and this data to BI tools for further processing and analysis.
Effective data management is essential to efficiently carry out routine operations in a supply chain. Besides, it is equally important to maintain historical records of various orders, shipments, and customer details. Data warehousing solutions are fully compatible with a majority of modern-day enterprise modules and software systems. Thus, enterprises can easily integrate data warehouses with their existing software systems to enhance their performance and efficacy.
Data warehousing solutions are designed to support various BI applications and advanced analytics tools to capitalize on a company’s data. The ultimate goal of these BI and analytics solutions is to enhance business productivity through intelligent decision-making. Needless to say, a data warehouse acts as the backbone of the BI software infrastructure and thus, it significantly improves the decision-making capabilities of various businesses.
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From the aforementioned features and benefits, it is quite evident that data warehousing plays a critical role in supply chain management. Not only does it enhance data storage capabilities but also streamlines data handling processes while driving BI tools and machine learning algorithms. According to Global Market Insights, the market value of data warehousing solutions had grown to $13 billion in 2018. Furthermore, it is likely to grow beyond $30 billion by 2025 at a compound annual growth rate (CAGR) of 12 percent. These numbers clearly indicate that data warehousing solutions are going to prove crucial for enterprises of all sizes in the coming years as well.
We are an ERP development company that specializes in building custom enterprise solutions for diverse industry-specific business needs. Our team uses agile methodologies to develop custom software solutions for mission-critical business functions like CRM, HRM, warehouse/inventory, eCommerce, logistics, and supply chain management. We use open-source platforms like Odoo, ERPNext and OFBiz to build scalable ERP applications with custom features. To learn more about our data warehousing solutions and SCM development services, reach out at [email protected].