BMG880: Leveraging Business Intelligence for Enhanced Inventory Management
Efficient inventory management stands as a critical success factor for many businesses, shaping their future trajectory significantly. A substantial portion of a company’s expenditures can be attributed to inventory investments (Waller & Nachtmann, 2006). Companies are actively seeking strategies to reduce costs by optimizing the efficiency of their inventory management systems, with logistics information systems emerging as a prominent cost-saving solution.
Information plays a pivotal role in enhancing a company’s supply chain performance by facilitating holistic decision-making across various functions and organizations (Waller & Nachtmann, 2006). The adoption of Business Intelligence (BI) ensures timely access to pertinent information, empowering management with actionable insights to drive performance improvements. According to the Gartner Group, BI encompasses applications, infrastructure, tools, and best practices aimed at enhancing data access and analysis to inform decisions and boost performance (Nedelcu, 2013).
Audi, a leading global vehicle manufacturer with a 7.2 percent market share in the United Kingdom (Statista, 2020), is currently grappling with inventory management challenges at its warehouse and facing coordination issues within its dealer network for used cars in the UK. These operational hurdles are inflating costs and adversely impacting Audi`s profitability and market demand.
Audi aims to streamline manufacturing costs through efficient inventory management while enhancing flexibility and communication with its dealer network to drive profitability. Leveraging BI, the company intends to facilitate timely access to critical information, improving communication channels with dealers and enabling data-driven decision-making to enhance overall performance.
This report will delve into how Business Intelligence (BI) can optimize Audi`s inventory management process, supporting the company`s cost reduction objectives and enhancing overall operational efficiency. Furthermore, it will highlight how BI can foster improved coordination between Audi and its dealers regarding inventory information, facilitating robust analysis of product promotion and sales strategies. The report will outline BI`s role in analyzing Audi`s extensive used vehicle inventory data, utilizing key performance indicators (KPIs) to visualize data effectively on a performance-oriented dashboard, thereby enhancing data interpretation.
