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1. Demand Forecasting
By leveraging ML algorithms for demand forecasting, businesses can gain a more accurate understanding of their customers' purchasing behavior and predict future demand with greater precision and make data-driven decisions to optimize their inventory and production planning.
2. Inventory Management
It also helps reduce excess inventory that ties up resources and increases holding costs. By analyzing lead times, managers make adjustments to account for items with longer lead times and minimize the risk of stockouts.
3. Managing Risks
By analyzing data and predicting potential supply chain disruptions, developing contingency plans, diversifying suppliers or optimizing inventory levels, companies can take steps to mitigate impacts and ensure continuity of operations, executing better risk management.
4. Enhanced Customer Service
Maintaining optimal inventory levels and streamlined operations results in reduced channel logistics costs that can be passed onto the customers, delighting them by providing higher value on their spending.
5. Better Supplier Management
Data analytics and BI are powerful tools that assist in analyzing historical data for supplier performance metrics and optimising supplier management processes. It enables supply chain managers to identify the most reliable and cost-effective suppliers.
6. Sustainability
Analyzing data on energy usage, emissions, and waste can help supply chain managers identify areas where sustainability improvements can be made. It is already an important consideration for businesses and can have a significant impact on the environment as well as the bottom line.
7. Agility
By continually monitoring and analyzing data, companies adjust their operations in real-time to meet changing customer needs and trends, staying ahead of the curve with quicker lead times and delivering improved customer satisfaction.
8. Higher Efficiency
With enhanced visibility across the supply chain, they can anticipate potential disruptions before they occur. It also helps businesses in identifying opportunities for process improvements, such as optimizing delivery routes and scheduling that minimizes lead times resulting in higher profitability.
Anurag Sanghai, Intellicus Technologies
"Companies that embrace prediction-driven supply chain management stand to gain by being better equipped to meet customer demands and adapt to market changes."