How would companies adapt to changing customer preferences especially after COVID-19? After all, customers form the base for any organization and serving them right is every company’s core mission.
The world is already moving towards digital transformation and artificial intelligence particularly in the field of Supply Chain. This is where the concept of Predictive Analytics comes into picture.
In an industry where time and resources can make or break a company’s bottom line, predictive analytics is no longer an additional feature, but a necessity. It is anticipated that markets will grow from 4.56 billion USD to 12.4 billion USD by 2022, hence increasing opportunities in this sector.
It has now become essential for manufacturers to evolve their supply chain models to meet customer demands. Predictive analytics makes a process more reliable, accurate and at reduced cost. While adapting this technique, 90% of the problem is about forecasting, starting with the demand forecast and gradually moving towards procurement and logistics planning.
The supply chain model can benefit from using predictive analytics in many ways. You can identify real-time patterns and track the purchasing behaviour and further provide insights into the customer patterns. This advanced analytics can also be used to forecast the demand for specific inventory, in turn resulting in better management of resources.
Resource efficiency will also lead to price optimization. Thus, manufacturers can adjust prices according to their product demand. One of the other helpful ways of adopting predictive analytics is it helps the manufacturer to identify defects. Hence, this can help companies to reduce downtime on machine loss and save in costs.
Many companies have already realized the benefits of integrating analytics in supply chain. Netflix has already made this shift by making their business model more data driven. According to a study done by Accenture, companies who have embed data analytics in their supply chain models have seen improved customer service and demand fulfilment. Their supply chain efficiencies have increased by 10% or greater.
Without this shift, companies might fall back into the red ocean. Analytics has become the need of the hour for most of the industries now. Ultimately, it will prove to be a game-changer for all.
Source: https://www.chainofdemand.co/how-predictive-analytics-will-change-the-supply-chain/;www.iko-system.com
Article by Simran Sharma
