Category Archives: SaaS

The Benefits of Business Intelligence … With or Without SaaS

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A recent article in Industry Week on “making the move to SaaS” listed 7 ways that SaaS BI can help manufacturers. I found the article amusing because these key insights hold true whether or not you deploy your BI on SaaS.

So, here are seven ways BI can help you:

  • identification of demand trends
  • analysis of supplier costs and delivery histories
  • identification of customer buying patterns
  • channel team empowerment via full visibility into sales history
  • increased profitability through better cost controls and inventory levels
  • improved customer satisfaction through better service levels
  • continuous operational improvement

And, even better, you can do all this with a good “spend analysis” tool that was designed for more general “data analysis”. So go do it.

Strategy in a Structural Break

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Last December, the McKinsey Quarterly published an article on “Strategy in a ‘structural break'” that is even more appropriate now than it was then as the structural break, at least according to some, shows no sign of ending this year. The article, which started off noting that a structural break in the economy is an opportunity in disguise, made a good point … you need a strategy … a real strategy … a cohesive response to the challenge … to survive. This is especially true when the old ways no longer work and you have to change … and chances are, for the majority of companies out there, this is the case.

So what can you do? You definitely have to avoid the phenomenon by which process engenders further process, eventually becoming a self-sustaining buzz and reduce the complexity of corporate structures and transform your business models. You have to simplify and simplify again. Then provide lean central and support services that don’t require business units to spend time and energy coordinating their activities.

So what does this mean for your supply chain? What is your strategy for the structural break?

While it’s hard to say, as each company will need it’s own, unique, targeted strategy to survive, I can tell you this. You need to:

  • adopt a center-led strategy
    that allows you to use the best of center-led and distributed models and uses collaboration software to share best practices and knowledge throughout the organization in an easily searchable and retrievable anywhere, anytime model
  • adopt a dynamic real-time push-pull demand chain model
    it’s a volatile market, and old methods of forecasting, pull-only, and push-only don’t cut it anymore … you have to adapt in real time, pull when you sense a sharp uptake, and have your manufacturer push when they can predict uptakes ahead of you and create optimal production runs
  • organize around the “networked person”, not the organization man
    if you’re not on the move, you’re standing still and … in this economy … if you’re standing still, you’re being pushed off the cliff with the rest of the lemmings
  • implement SaaS or cloud e-sourcing and e-procurement technology
    make sure your entire team can use the applications anytime, anywhere to do their jobs and get what they need, when they need it, at the best value point
  • if you don’t have it, get optimization software …
    and if you have it, use it
    figure out where you’re spending the bulk of your money (by way of a good spend analysis if need be), and get the right optimization software for your needs: if it’s goods or services, get strategic sourcing decision optimization software; if it’s transportation get transportation and network optimization software; if it’s manufacturing and production, get production optimization software … applied against the right problem, you can expect a 10X return … or more … for your investment … if not more!
  • use more consultants
    but target them on near-term and mid-term ROI initiatives until you get your cash flow optimized, then go back to the long term planning

Now is the time for SMBs to invest in Supply Chain Technology

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I have to agree with a recent article in the Supply Chain Digest on why “SMBs should invest in Supply Chain Technology” now because it echos what I’ve been trying to say for over a year now … it could save your company a lot of cash. As Dr. Norek notes, on-demand supply chain solutions change the financial dynamics and may help improve cash flow right away. e-Sourcing helps you negotiate more savings. e-Procurement cuts your transaction costs and, integrated with e-Contract Management, helps you realize your negotiated savings by preventing maverick buying and flagging invoices not at contracted rates. e-Supply Chain Finance Solutions streamline invoice processing and help you get paid on time, especially if they support dynamic discounting. And so on.

You need to spend a little to save a lot and make a move while others stand pat and, right now, I can think of no better investment than supply chain technology which can deliver ROIs of 3:1, 5:1, 7:1, 10:1, and more (especially if you invest in the right spend analysis and decision optimization solutions). And if you can find a True SaaS solution that meets your needs, the up-front costs are minimal, and the continuing costs extremely affordable, especially compared to the continuing ROI that accompanies some of these modern supply chain technology solutions.

During these difficult times, well-planned and executed supply chain technology investments can allow SMBs to grow and save costs while many of their bigger counterparts are shrinking. So make a move … the market is yours for the taking!