Predictive analysis: How it improves supply chain visibility
Predictive analysis, today is part of all major business operations and processes to help forecast trends, events and to find solutions for complexities. With forecasting the future supply chain and logistics events, the companies can be in a competitive position and prevent any monetary loss. Besides that, they can also control accurate stocking and mismanagement of goods and its delivery.
According to Forbes, predictive analysis is mandatory in logistics as it relies heavily on accuracy and timeliness to achieve success. “Inventory management, picking, packing, and shipping are all time and resource-intensive processes which can have a dramatic impact on a business’s bottom line.”
Reasons why one should not skip using the predictive analysis
The supply chain market is set to grow from 4.56 billion USD to 12.4 billion by 2022 and hence the use of predictive analysis is at the forefront offering a myriad of opportunities in decision making such as stock errors, damaged inventory, among others. Besides that, it also allows organizations to uplift the customer service by providing traffic patterns, weather events that affect the shipping and port behaviour.
Let’s look at some of the benefits of predictive analysis:
Identifying real-time patterns and data accurately
Predictive analysis is capable to track and detect the real-time patterns of their customers. With the technology updation, the advanced algorithms, the huge data sets can be easily interpreted and analyzed and help make quick decisions with better accuracy and speed.
Enhancement of overall operations
With forecasting using predictive analysis, one can make arrangements for specific inventory by managing resources in the best way. As the logistics person can take faster actions, every area of operations can move efficiently.
With predictive analysis, route optimization becomes easy. Irrespective of the mode of transport used, predictive analysis helps minimize the risks by calculating the exact conditions that enable real-time adjustments, deliver cost efficiencies and satisfy customers.
Supply chain transparency
With all stakeholders under one umbrella and interconnected, it becomes easy to immediately notify about a delay or any rejection or approval. Any milestone or occurrence is notified accordingly to all stakeholders as soon as the event happens. Besides that, even market insights, the trends about customer preferences and buying patterns are also obtained.
Final mile delivery
Simplifying the last-mile delivery in a supply chain can save upto 25% of the overall delivery cost for the customer. Using route optimization tools like GPS, RFID on the vehicles and use of smart gadgets allows maximum optimization on your delivery strategy.
Predictive analysis has come a long way, and with the availability of centralised data (accurate and free from errors), it has become easy to make sound business decisions. This pro-active approach also helps define strategies in the long run by understanding the business logic. This is definitely the next big thing in supply chain management. 3PL companies like 20Cube Logistics’s “MyHubPlus” is making use of predictive analytics, helping customers business thrive.