Predictive Analytics and its dynamic capability to improve supply chain capabilities Written By: Ashishdeep Singh & Jaswinder Kaur (Students at Victoria University in the field Master of Business Analyst)
Before writing any point, firstly we would like to thanks our lecturer, Dr. Shah Miah who provided us a pathway to write blog which is quite interested for us.
We would like to start the topic by giving a small example of everyone’s daily life that predictions minimize the effects of incidents or accidents in the future and also aware people to become predictive in a general way. For example, if we know the bad weather forecast beforehand then protective actions can be taken on that situation to make ourselves safe.
Supply chain is a wider term which connects many customers, manufactures, retailers and distribution centres to flow goods and services from one single point to last destination spot. During the supply chain process, organizations deal with lots of challenges which may affect the prestige of business and create dissatisfaction among manufacturers, distributers, retailers and organizations which all together make customers unhappy due to delay of products and services.
Predictive analytics is an evolving term which gives competitive advantages to business by improving their supply chain or helping executives to make better decisions for their growth (Miah, 2016). According to IBM (2015), Predictive analytics in supply chain can assist organizations to improve inventory management by giving the clear view about requirements of consumers and present situation of inventory which helps them to make better decision about inventory. Inventory can be in various ways which is shown below.
(Source – IBM, 2015)
Through predictive analytics supply chain process can be maintained in well-organized way along with included inventor which depicts clearly in the flow chart below.
(Source – IBM, 2015)
Along with demand & forecasting management, there are many other issues those may happened on road during supply chain process such poor congestions, bad infrastructures and traffic accidents which all are responsible to slow down the supply process of goods. With the help of descriptive, predictive and prescriptive analytics tools and techniques, managers are able to get the accurate and timely information about supply chain.
In nutshell, we can say that Predictive analytics improve the capabilities of supply chain which help organizations to make better decision and get competitive advantages. Moreover, it maintains the healthy relationship among people and organizations those who are involved in supply process.
Many Thanks to:-
- Dr. Shah Miah
- Miah S, 2016, ‘Predictive Analytics for SCM Application’
- IBM, 2015, ‘Predictive Inventory Management: Keeping your Supply Chain in Balance’, viewed 09 September 2016, <http://rav.no/wp-content/uploads/2015/03/Predictive-inventory-IBM.pdf>