BI On Demand Case Study - Packaged Goods Manufacturer
According toa Gartner Research February 2008 report on BI self-service
options "mid-market companies are often in volatile business
cycles where revenues could grow quickly or come crashing down."
By comparision, larger companies are focusing on targeted online
BI applications. For instance Welch -, the $654 million consumer-packaged
goods manufacturer - installed an on-demand BI application from
Welch ships its products five days a week out of its distribution
center, but found themselves "just totally overwhelmed on Fridays,"
complaining, 'How come there are so many orders on Friday?'"
To provide analytical insights not currently available in their
Oracle BI software [installed in 2007]
Welch started with rolling out a transportation logistics BI application
that provided analytic insights from both Welch's systems and those
of its distribution partners'.
By capturing every element - from the customer orders to bills
of lading, as well as every data element on every freight bill the
Director of Purchasing and Logistics can "mix-and-match
and slice-and-dice any way we want."
It turns out that Coyne's team was causing the problem themselves.
The data analytics revealed their errors, which they have now fixed.
"Just trying to steer away from Fridays provides us a huge
benefit," Coyne says. "We can look at the number of orders
per day, the number of orders by day per customer and overall customer
Welch's spends more than $50 million each year on transportation
expenses, and the Oco BI application and reporting features have
become critical in a very short period of time, he says. "We
literally can't go any amount of time without knowing this stuff,"
In addition, training users on the new application is "the
equivalent of training someone to use Google," he notes. As
to the payback, it's been "almost instantaneous."
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