There is a lot of talk within the supply chain industry regarding the value supply chain predictive analytics. This is because data collection and analysis prepare freight managers for the highs and lows the industry will likely face in the new year. And that amounts to opportunities to reduce transportation costs. But they are often overlooked, underused and outdated.
According to a survey of business owners conducted by Deloitte: "21% of respondents—the highest of eight answer options—said their companies rely most heavily on existing supply chain resources to execute digital and analytics initiatives. However, 82% identified internal expertise as the No. 1 talent challenge, indicating that these existing supply chain resources are not equipped with the required technical and analytical skillsets to deliver digital and analytics initiatives successfully."
Unfortunately, supply chain predictive analytics remains subject to interpretation. Why? It's easy to get lost in the technical terms and data. However, there is a solution that's easier to attain than most realize. To cover the need for better supply chain predictive analytics, many companies turn to third-party consultants and vendors to assist in filling in the gap. But first, let's take a closer view of supply chain predictive analytics and how they are an invaluable tool in the logistics' managers toolkit.
The discipline and basic structure of supply chain analytics have been around for many decades. However, it has only been within the last ten or so years that a more in-depth analysis level has been taking place. The shift in focus has given rise to several different but equally important types of analytics:
By addressing general trends and looking at what may happen down the line, managers can be better prepared by taking steps sooner rather than later. Supply chain predictive analytics makes such a thing possible. If trends over the last few years show seasonal spikes for the holidays, managers can use the predictive data to begin preparing ahead of time and ease into things with less stress. And as the value of analytics has grown, it's now possible to look beyond yearly data. In other words, companies can compare week-over-week and day-over-day trends to create a practical plan of action. That is the power of embracing supply chain predictive analytics. Predictive analytics provide insight into what's happening as well as why and what else can be achieved through more transportation optimization in the network.
To make the most of predictive analytics within the supply chain, shipping managers should follow these simple tips:
Predictive analytics is the secret sauce in successful freight management. To learn more about utilizing predictive analytics and other real-time data within the supply chain network, contact Intelligent Audit. Call or visit them online to get started today with supply chain predictive analytics.
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From inventory shortages to transportation delays and disruptions galore, there is plenty to learn from the 2021 holiday peak season. Read more now.