Deploying a Data Warehouse Platform for Manufacturing Businesses

Written by
Published on
February 13, 2023


The manufacturing sector deals with significant global competition. Flexibility, short lead times, and strict adherence to delivery schedules have emerged as crucial success elements in addition to product quality and pricing. However, the manufacturing industry's current warehousing and analytics systems have shortcomings that severely prevent holistic process improvement. It particularly needs a comprehensive database that combines operational and process data for a better workflow.  

   Here, the process of data warehousing comes in handy. It is a system that helps organizations, both small and large, make decisions by giving them real-time analytics. The right data warehousing solution will improve data analytics, help with reporting and analytics, and help create several use cases that will solve business problems.  

   What is Data warehousing?  

   To provide useful business insights, data warehousing is a method used to gather and organise data from various sources into a central repository. When all of your data is in one location, performing analysis and reporting at various aggregate levels is much easier.  

   It serves as the foundation of the BI system and aids in the improvement of business choices. Simply said, it is a place where all of your company's data combined from many marketing and other sources is stored electronically.  


   Components of a Data warehouse platform  

   A data warehouse may appear to be nothing more than a repository that is linked to your data sources (CRM, IoT devices, SaaS apps, etc.) on one side and to the BI and analytics software on the other. The entire data processing and storage environment, which comprises the following parts, is what constitutes a data warehousing system in reality:      


  • Data Source Layer  

   Information from the source system is ingested by an extract, transform, and load (ETL) or extract, load, and transform (ELT) solution, which then processes the data until it is suitable for long-term storage. It's essential because, in order to execute enterprise-grade analytics, businesses must rely on several data sources, each of which not only stores a variety of data kinds but also has its own data model and produces information at a range of speeds.      

  • Data Staging area    

   A staging area is a short-term repository for raw data that is located between data sources and its long-term storage. It hosts the data while it is being transformed. If the transformations are carried out in the data warehouse database, this aspect can be skipped. It is typical for solutions designed using the ETL approach.        

  • Data Storage  

   A relational data warehouse database that keeps subject-specific and integrated information such as raw data or metadata.  

  • Data Analytics    

   The OLAP (Online Analytical Processing) concept is the foundation for multi-dimensional data analysis systems, which utilise historical data rather than recent transactional data. The multi-dimensional structure known as Cube is an example of this. It is based on facts and dimensions, which include pre-calculating and storing complex aggregations, as well as building mining models to perform data analysis that aids in identifying information such as trends, patterns, relationships, and more.    

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   How Data warehousing is advantageous?  

   To get the management's perspective on the firm, Data Warehouse offers several essential criteria across several dimensions. These systems use software to generate interactive reports depending on the parameters of facts and dimensions, replacing conventional and static reports.    

   There are two sorts of data in the manufacturing industry: dynamic operating data and historical data. The primary foundation of DW is historical data with few modifications. These tasks can be carried out with such data:  

  • Monitor performance indicators
  • Data evaluation
  • Summarise and evaluate the information to create a timeline of all the tasks    

   Global firms produce 7.5 septillion terabytes of data every single day. The manufacturing sector produces enormous amounts of data about its production capacities, delivery schedules, supply chain management, and other topics. Only 45% of this data, according to experts, is utilised, which presents a chance to learn even more about business operations and procedures.  


   The benefits of Data warehousing for manufacturing businesses    

   Data warehousing makes superior short-term and long-term operational decisions by utilising all the data created by your manufacturing organisation.      

   In real-time data warehousing, data is continuously loaded into a warehouse and made immediately accessible to the various business functions that need it. This is in contrast to the conventional data warehousing technique, in which data is loaded from source systems in batches on an hourly or overnight schedule.      

   For businesses, having access to current information is a game-changer since it provides important advantages.  


   Here are 7 of the most significant reasons to use data warehousing in your manufacturing organisation.      

   1. More rapid judgement    

   Organizations may aggregate data from various sources, draw insights from them, and use them to make important business decisions thanks to real-time data warehousing quickly. Companies can set reports to run only when necessary and can instantly update data from all business systems in the data warehouse. By doing so, more agile organisations may generate reports and insights in less time.  


   2. Accurate Inventory management      

   The key to generating business insights that can assist you in making data-driven decisions for enhanced efficiency and profitability is currently held by today's inventory control systems.    

   To predict future demand, these systems use historical data and data analytics. More specifically, efficient inventory management software can analyse a sizable amount of your historical sales data and forecast future inventory demand by taking lead times and seasonality into account.  

   By lowering costs, enhancing operational effectiveness, boosting revenues, raising customer satisfaction, and decreasing inventory shrinkage, big data is revolutionising inventory management capabilities.    

   If your store is experiencing any of these problems, it may be time to look at a more data-driven inventory management solution to help you grow your company.  


   3. Offers Improved Demand Forecasting    

   Demand forecasting is challenging, yet it is required to schedule purchases, production capacity, and inventory requirements. This work can be greatly aided by data analytics which builds from a combination of historical data and useful real-time measurements.  


   4. Effective supply chain management solutions      

   Data warehousing is crucial to supply chain management because it gathers and retains crucial information on suppliers, shippers, vendors, and final items. To make the collection and retrieval of data for ETL purposes easier, it combines several querying tools and saves data records in a tabular manner. To properly carry out everyday tasks in a supply chain, effective data management is required.      

   Additionally, keeping historical records of different orders, shipments, and client information is crucial. The bulk of current enterprise software modules and systems are completely compatible with data warehousing solutions. As a result, businesses can quickly combine data warehouses with their current software systems to improve those systems' effectiveness and performance.  


   5. Data Consistency      

   The use of data storage or a data mart for your company is advantageous. Each source will produce results that are synced with other sources since data warehousing consistently maintains vast amounts of data from various sources, like a transactional system.      

   This ensures that the data will be of higher quality and consistency. Because of this, businesses can be confident that the data they're using to make decisions is accurate.  


   6. Return and delivery management solutions      

   Customer receiving incorrect items is one of the main causes of product returns. Eliminating delivery errors in the warehouse through the use of barcode scanning is one of the greatest ways to accomplish this.      

   More particularly, if a warehouse worker were to inadvertently pick the incorrect item, a barcode scanner would instantly alert them, allowing them to fix the error before shipping it to the customer.      

   You can enhance your organisation's procedures to reduce future problems and increase consumer happiness by comprehending the causes of product returns.      

   However, clients who have already had a problem may be more satisfied if the return process is quick. The use of a system that facilitates the effective processing of returns and exchanges is crucial for this reason.  


   7. Customer connect solutions      

   The cornerstone for sophisticated analytics and machine learning, which are necessary to deliver individualised consumer experiences across all channels a business employs, is real-time data warehousing. According to McKinsey's research, businesses that succeed at personalisation generate 40% more revenue than their typical competitors.  



   Recognizing the business requirements and the data warehouse's underlying theory go hand in hand. It's eye-opening to see how companies are using the benefits of data warehouses today. Customers desire individualised and distinctive experiences. Better insights are desired by management and decision-makers when predicting outcomes. Data warehouses simplify and speed up these processes.  


   B2C businesses can use the data to improve their marketing strategies and target the correct customers. Similarly, manufacturing companies can take advantage of the benefits of data warehouses to monitor the maintenance cycle, and the condition of tools and machines, and to optimize their use to avoid breakdowns.  

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