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BMG880: Inventory management is a key success element for many businesses, and how well a firm manages its inventory determines: Data Analytics for International Business Report, UU, UK
| University | Ulster University (UU) |
| Subject | BMG880: Data Analytics for International Business |
Inventory management is a key success element for many businesses, and how well a firm manages its inventory determines its future. Much of a company’s costs can be attributed to the amount it invests in inventory (Waller & Nachtmann, 2006). Companies are looking for ways to cut costs by improving the efficiency of their inventory management systems. Logistics information systems are one method that businesses try to cut expenses.
According, Information is vital to a company’s supply chain performance because it allows management to make broad decisions involving several functions and organizations (Waller & Nachtmann, 2006). The use of Business Intelligence (BI) provides the right information to the right people at the right time. Business intelligence, according to the Gartner Group, BI is an umbrella phrase that includes applications, infrastructure, tools, and best practices that enable access to and analysis of data to enhance and improve decisions and performance (Nedelcu, 2013).
Audi, a world-renowned vehicle manufacturer with a 7.2 percent market share in the United Kingdom (Statista, 2020), is currently experiencing inventory management problems at its warehouse as well as poor supply chain coordination with its dealer for used cars in the United Kingdom, both of which are pushing up the company’s costs. As a result, it impacts company profit and reduces the demand for the Audi car.
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Audi wants to reduce manufacturing costs by managing inventory while also wanting to increase flexibility and communication for instance- good coordination with their dealer, which will be led to increased profit. Audi wants to implement BI in order to get the right information to the right person at the right time to improve communication with dealers and analysis of data to enhance and improve decisions and the performance of the company.
This report will discuss how business intelligence (BI) can improve the inventory information management process, which will assist in Audi management’s cost-cutting efforts and inventory management. This report also will discuss how BI can improve Audi company coordination with their dealer regarding inventory information which will help company management to analyze product promotion and sell. BI analyses Audi’s over 10000 used vehicle inventory data in an excel sheet at the start of the data analytics/BI process, then finds the KPI BI to visualize those data on a performance-based dashboard which will help to understand company data easily.
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