Supply chain analytics mainly aims to provide a better understanding of risks in order to plan investments wisely and avoid havoc in return on the RoI scale.
Every minute of the day, enormous goods are transported within the supply chain across the globe. The development of technology has made it possible to improve operational efficiency with data-driven strategic decisions.
Nevertheless, supply chain analytics helps forecast menaces like rise in fuel price, commodity price effects on raw materials and complexities with labor resources etc. The current practices are old school and time-consuming, leaving less room to be well prepared for such scenarios.
Why leverage machine learning to supply chain analytics
Bygone are the days when businesses were forecasting profits. Today they focus on being well prepared for uncertainties.
Fortunately, the invention of AI and ML has made it possible to exploit real-time data with cloud power and predict such scenarios as well as be well equipped for the same. Additionally, leveraging machine learning to analyze historical data helps forecast potential errors as well as minimize fraud potential.
In this article let’s discuss the 3 ways machine learning is optimizing supply chain analytics:
How machine learning is optimizing supply chain analytics
Map Demand Patterns
The amount of data available today is huge, vast, and diverse. Analyzing this voluminous data in depth with an analytical tool also requires human intervention to get the job done right. Sophisticated algorithms of machine learning are adequate to run through historical data as well as compare it with real-time data to pin underlying patterns and forecast future demands and issue areas.
Real-time Insights To Improve Customer Experience
Assessing real-time data also enables you to obtain a contextual intelligence about your customer satisfaction, experience, churn factor and buying behavior across each specific product. Machine learning helps you compare these patterns from multiple data sets at visual pattern recognition in minimal time and cost. Thus, you can plan how to improve aspects of supply chain management like collaboration, logistics, and warehouse management in real-time.
End-To-End Visibility Across Diverse Supply Chains
ML can comb through multi-enterprise commerce networks and provide perspective insights on the product life cycle to improve planning, pricing, and performance largely. Also, it helps in on-time delivery of products, supplier relationship management, and inventory management.
Although AI is coming into the picture in recent days, machine learning proves to play versatile roles such as data analysis, optimization, price planning, forecasting and much more in the supply chain. Leveraging ML skillsets can help kick out traditional statistical models and refine supply chain analytics in real-time.