Utilizing-Smart-Sensors-Creates-Agile-and-Efficient-Supply-Chains

With 43% of supply chains using smart sensors, the industry must continue to integrate IoT tools to ensure efficiency and agility.

Last week, Morai Logistics presented the benefits of implementing smart manufacturing into supply chains. The integration of technology into factory level operations, ‘helps to create opportunities that improve efficiencies, productivity and operations on the ground floor’. By smartening up manufacturing, supply chains can ensure a high level of visibility across the shipment lifecycle. In addition, there is less reliance on manual shipment processes and more focus on automation.

If we trace smart manufacturing back to its root technology, we will find the Internet of Things (IoT). Industry experts have been integrating IoT theories and technologies into a variety of ‘machine to machine (M2M) communication’. Smart sensors, or instance is a new technology that is ‘supporting supply chain innovation and the smart factory’.

The global market share of smart sensors will grow to USD $21.5 billion by this year and USD $39 billion by 2022. Their advanced ability to uncover insightful information from data position smart sensors as a valuable technology tool to supply chains. In fact, 83% of supply chain leaders believe sensors, robotics and inventory optimization tools, are beneficial for competitive differentiation.

This week Morai Logistics will discuss how IoT technologies such as smart sensors, help the supply chain and logistics industry become more efficient and agile.

Smart Thinking with Smart Sensing

It was forecasted that by this year, the global IoT market will generate over USD $1.7 trillion. Statistic also show that the number of connected devices will be 20.35 billion. The Internet and technology continue to create opportunities for greater connection and communication. In order for supply chains to keep up with demand, supply chains must adopt and implement these tools.

There are many factors to consider when developing a comprehensive smart supply chain. The advancement toward smart manufacturing helps the industry develop efficiencies in operations and productivity. Furthermore, the use of smart technologies and tools is a huge part of smartening up the journey of products throughout the shipment life cycle.

Smart sensors, for instance, has the ability to harness complex data sets and translate them into actionable and insightful information. Sensors have been used to execute traditional operations, which included tracking orders and maintaining inventory. However, there are notable differences in new smart sensors. According to Deloitte,

Smart sensors are advanced platforms with onboard technologies such as microprocessors, storage, diagnostics, and connectivity tools that transform traditional feedback signals into true digital insights.

It’s an innovative way of extracting data to enable supply chains to make smarter decisions. Statistics show that 43% of supply chain leaders stated their companies ‘use sensor technology’. Furthermore, experts say that smart sensors enable ‘always-on supply chains’. By integrating smart technologies such as sensors, supply chains can benefit in many ways.

Benefits of Smart Sensors

To keep up with an upward movement in consumer demand and expectation, supply chains must look at current barriers. Common focus has been on improving visibility, productivity and operational efficiencies. Research shows that the integration of IoT technologies help in the following areas:

  • Efficiency
  • Responsiveness
  • Business Interuption

Smart sensors aid in collecting data and using it to help organizations with improved decision making. Furthermore, this enables management to reduce certain interferences that may include ‘missed handoffs, cold chain exceptions or theft’. The benefit of integrating smart sensors also includes ‘informed scenario-based contingency planning’. In addition, supply chains can improve their agility, ensure customer satisfaction and dodge unnecessary costs.

The Shift Toward a Demand Chain Model

Experts say demand-chain models are an effective solution for supply chains to meet the increased need for immediacy and improve the customer experience.

Today, consumers crave instant gratification when searching for products and services online. They want access to information and results in an immediate time frame, and this transcends throughout the buying funnel. It especially includes delivery. To meet consumer demands, there are high expectations on companies to offer same-day shipping options to their customers.

While companies work hard to get packages and goods to consumers efficiently, Forbes states,

…there comes a point where supply chain simply can’t get a package to you any faster.

This puts pressure on supply chains to evolve their strategies and execute efficient and effective solutions to meet these expectations. Distribution centers (DC) have been an integral component to a supply chain, and provide many benefits with respect to meeting these expectations. In 2017, the United States warehousing market, accounted for $148.7 billion. The total number of warehouses accounted reported in the same year was 17,353. There is a growing need for companies to expand their distribution capacity to meet the output requirements for consumers.

However, while expanding DC’s provides improved delivery solutions, experts believe a shift toward a holistic demand-chain would take it one step further. This article by Morai Logistics discusses the fundamentals of the demand-chain and the beneficial outcomes it could have as a supply chain model.

What’s a Demand-Chain?

According to Forbes, a demand-chain is ‘a state where production is localized and immediate’. It represents a shift from relying on centralized manufacturers, to autonomous machines. Supply Chain Market describes this migration as ‘the next generation in fulfillment’. It further responds to the extensive growth of ‘net economy’ or e-commerce, which has been fueling a high level of demand for immediacy.

To compete into this high-performance global market place, companies must follow a model that considers the following key metrics:

  • Product assortment
  • Fulfillment and execution
  • Visibility
  • Customer loyalty and retention

The overall added benefit of focusing on demand and pull, is that customers will get their products on demand. Simply put by Forbes, ‘there is a fast, on-demand creation of goods in the exact amount necessary’.

Top Reasons to Consider Demand

Demand-Chain models are a step toward meeting customer needs through the application of technology and demand-focused strategy. There are many reasons why this model is favourable for high-performance industries, such as supply chain and logistics.

Improves Customer Experience

Developing optimized solutions to improve on-time delivery and immediacy, has been primarily motivated by the objective of carrying out a positive customer experience. Thus, by improving visibility and leveraging technology to create more efficient modes of production and delivery, immediacy can be met.

Reduces Wasted Inventory

Businesses may run into various challenges when trying to produce and deliver large outputs, which can ultimately waste inventory. Possible reasons could be overproduction, delays or order defects. As a result, unnecessary inventory leads to a waste in product and money for the business. A demand-chain enables businesses to follow a just-in-time model where products are produced and delivered when needed.

Optimizes Order Fulfillment

Furthermore, a reduction in wasted inventory, a demand-chain model also aligns order fulfillment with delivery performance. When an organization can effectively understand the level of production required, they can better predict how to allocate resources to carry out the shipment life-cycle.

5 Ways RPA Optimizes Supply Chain Management

Robotic Process Automation (RPA) is an effective solution that helps improve efficiencies, reduce costs and optimize productivity.

Findings on the global RPA market, project a ‘Compound Annual Growth Rate (CAGR) of over 27%’ throughout 2013 to 2024. By 2024, this would amount to over 7, 000 Million (USD).

In a recent survey on RPA adoption, 17% of supply chain professionals believe RPA will be implemented in their organization’s by 2020. Furthermore, two thirds of respondents stated that their organization currently uses or are exploring this technology.

According to McKinsey & Company, RPA is defined as,

A type of software that mimics the activity of a human being in carrying out a task within a process.

Integrating this technology into any organization helps reduce human error and cost, while improving ROI and productivity. However, although skepticism exists in matters of replacing human jobs with automation, RPA actually provides many benefits to supply chains. Therefore, RPA is emerging as an effective technology for many industries, including supply chain and logistics.

This infographic by Morai Logistics outlines the top 5 ways RPA help improve supply chain management processes.

Robotic Process Automation: Supply Chain Optimization

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That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in what we do as a 3rd party logistics provider? Then don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

From Adoption to Digital Transformation
Experts say that supply chains must move from adoption to digital transformation if they want to improve efficiencies, operations and take their businesses to scale.

For the North American transportation supply chain and logistics industry, last year saw a widespread adoption of digital technologies. Predictive analytics proved beneficial to providing end-to-end visibility of supply chains, and ensuring efficiency with on-demand deliveries. When applied to operations, cloud-based technologies helped businesses scale, improved workflow productivity and created opportunities for competitive differentiation. Furthermore, robotic and automation armed warehouses with optimized levels of productivity and improved customer service.

Although the adoption of emerging technologies created solutions for transportation supply chains, the industry still faces many significant challenges. The increase in consumer demand for immediacy and personalization, in conjunction with pressures of the nationwide labour shortage, requires more than digital adoption. To further improve operational efficiencies, reduce costs and create opportunity for bottom line profits, supply chains must move from adoption to digital transformation.

According to Supply Chain Management Review,

Digital transformation is perhaps best explained as the implementation of new technologies to accelerate operations, sales and customer service, back office productivity and, ultimately, the growth of the business from end-to-end.

Whether the customer is a shipper, retail wholesaler or vendors, the goal of digital transformation is to ultimately improve the customer experience.

This week Morai Logistics provides an overview of what digital transformation looks like in transportation supply chains. The benefits moving from evolving from simply adopting digital technology to a comprehensive and whole-scale transformation will also be reinforced.

Digital Transformation of Supply Chains

There are many industries across the world recognizing the need to digitally transform. North America ranks at the top of the global market. By 2022, global statistics forecasts that spending on ‘the technologies and service that enable digital transformation’ will reach USD 1.97 trillion. However, in a study on the adoption of digital transformation within five major sectors, supply chains reported the ‘lowest level of digitization’.

Although digital transformation is considered to be a main focus for many, the truth is, this process fails more than it succeeds. According to the found of Supply Chain Insights, there are four common mistakes businesses make:

  • Disconnect with vision and strategy on implementing digital transformation
  • Transformation process does not include ownership from the business
  • Focus is not on meeting the needs of the customer market
  • Lack of partnership with innovative technology companies

Let’s address mistake number one: disconnect with vision and strategy. Before a supply chain executes digital transformation, they must understand the trends shaping the need to transform.

Universal Need for Digital Transformation

There are many reasons why digital transformation can improve the end to end profits of an organization. They may change depending on the industry. For supply chain and logistics, the following three reasons why adoption should move to transformation.

Customer Experience

Today, customer experience is at the top of the board when it comes to strategic priority. From social media to online buying, to smartphones, consumers have the power to connect anywhere at any time. This has changed the buyer’s journey significantly. Consumers expect a heightened level of transparency and personalized and engaging experiences.

Employee Support

The current capacity crunch and nationwide driver shortage, also requires organizations to look at employee fulfillment. Integrating digital tools throughout the supply chain, will promote efficient methods of productivity and communication. This can have an incredible impact on performance and empowerment, while also giving more time to focus on ‘streamlined decision-making’.

Strategic Insights

The implementation of technologies throughout all facets of a supply chain can help generate large data sets, known as Big Data. Online interactions between shipper and supplier can generate unceasing amounts of data. However, without appropriate tools to translate these numbers into valuable insight, meeting the needs of either party becomes challenging. Therefore, digital transformation ensures that innovative technology solutions are in place to provide strategic data that will ultimately achieve success.

4 Supply Chain and Logistics Trends for 2019

The integration of technologies and the digitization of supply chain and logistics will continue to transform the industry in 2019.

Last year, changes in global markets and the boom in e-commerce increased consumer spending and expectations significantly. According to Statista, 21.1 % of supply chain executives found visibility to be the top challenge facing supply chains in 2018. In second place, 19.7% of respondents believe fluctuations in consumer demand was the most significant obstacle. The industry responded with the integration of innovative emerging platforms such as artificial intelligence (AI), predictive analytics, cloud technology and machine learning. This also led to the development of data-driven and predictive solutions that enabled companies to focus on providing personalized, customer-centric experiences.

At the beginning of last year, Morai Logistics discussed the Fourth Industrial Revolution known as Industry 4.0. The need for digital integration and adoption has indeed shifted from being an attractive add-on to a necessity to survive in changing markets. Despite hesitation to risk, change and integration, digital transformation is being progressively adopted by many industries, especially in supply chain and logistics. According to expert forecasts on future trends in supply chain management,

…over the next five years about 80% believe ‘digital supply chain’ will be the leading industry model

Indeed the last year has seen incredible resilience from transportation supply chains against the disruption caused by digitization. However, what trends will be at the top of the list this year?

This article reviews 4 supply chain and logistics trends of 2019.

1. Capacity Crunch

In March of 2018, Morai Logistics discussed the nationwide truck shortage and its effects on deliveries and rates. This year, the diver shortage will continue to require third party logistics (3PL) providers to improve their services. They provide shippers with solutions through ‘network connections, competitive volume rates and ongoing integration of information technology’.

2. Transportation Regulations

Another industry trend hat will carry over from 2018 and cause turbulence, is electronic logging devices (ELDs). Despite being introduced into the industry back in 2012, ELDs were officially mandated in 2017. Although this is a positive move to monitor the health of drivers, it has remained a top stressor for the industry.

3. Digitization

As mentioned above, digitization will continue to impact the transportation supply chain industry this year. The adoption of technologies, apps and emerging platforms in response to consumer demand will become necessary to compete with changing markets. Data analytics will be a major player this year as companies will have to assess ‘supplier risk, tariff risk, logistics costs or manufacturing costs’. In addition, AI and machine learning will be two significant technologies of 2019.

According to Forbes, machine learning will impact the following areas:

  • Warehouse management systems
  • Robotic vision systems
  • Supply chain planning
  • Supply chain visibility

4. Warehousing

According to Deloitte, by the end of 2018, ‘online sales of consumer products were project to increase 350%’. The dollar value of would equate to ‘USD$36 billion’. With over 2.14 billion people expected to shop online by 2021, the ecommerce market is significantly impacting consumer demand. This increase in expectations on service and delivery will require warehouses to focus on direct-to-consumer fulfillment.

What does this look like? Experts see a widespread adoption of automation and adaptable and scalable solutions such as robotics and drones. This will be highly important for the retail industry. Furthermore, improved strategies on ‘design and location’ of warehousing will ensure products are within range of consumers to guarantee fast delivery. The added pressure to expand, innovate and adopt new technologies will also have a significant impact on the labour force. Wages are expected to increase across supply chains, which should motivate companies to create ‘employee engagement programs’.

The above supply chain and logistics trends are four of many that will shape the industry this year. In order to develop solutions geared toward improving the customer experience and combating consumer demand, technology will continue to play a significant role in 2019.

How Supply Chain Orchestration Improves the Customer Experience

Experts recommend supply chain orchestration as an effective solution to help organizations deliver positive customer experiences.

When it relates to personalization, 76% of customers expect companies to understand their needs and expectations. Findings also indicate that 67% of customers have switched vendors to seek ‘a more customer-like experience’. Customer expectation is a significant driver to the way organizations operate. Providing both convenience and speed is crucial to building a customer-centric business and building long term relationships with those customers.

Logistics are learning to adapt to the demands of customers, and organizations are seeking the most effective solutions to remain competitive. Supply chain orchestration (SCO) has been connected to providing a positive customer experience. According to supply chain experts,

SCO enables you to make informed, conscious choices about how to serve your customers better.

Orchestration benefits ecommerce markets in particular because it increases a customer’s accessibility to a larger variety of products and services. Therefore, customers are provided with a wider variety of delivery options due to an expansive ‘network of operators and carriers’. In addition, SCO also provides a variety of benefits that help close the gaps when it comes to visibility and efficiency.

This article uncovers the foundation of supply chain orchestration and how supply chains can leverage it to better the customer experience.

Supply Chain Orchestration Foundations

To understand how supply chain orchestration improves the customer experience, it’s important to first understand the need for SCO. As mentioned above, consumer demand is changing dramatically in response to a variety of factors including a significant increase in accessibility. For instance, customers who shop online are becoming increasingly expectant of fast delivery, personalized customer experience and order fulfillment.

A poor experience can influence a customer’s intent to re-purchase. Research found that 67% of customers would stop buying from a company if a competitor offered a better experience. Omni-channel touch points and visibility must be a core focus to organizations who cater to different generations and demographics. To ensure all consumer demands are being met, a seamless supply chain operation must be implemented.
According to Supply Chain 247,

Successful SCO is based on the right blend of elements for end-to-end oversight and control, but at the root, it is driven by a desire to put the customer first.

The goal is to create a supply chain network that takes into consideration both the bottom line and customer experience.

The Benefits of SCO

By implementing SCO, you will provide a variety of benefits to improving customer satisfaction in a cost-effective way. Inbound Logistics identifies a number of trends supply chain orchestration can provide.

1. Increase Visibility

Personalization is only successful when an organization can understand the needs of their customers and deliver. SCO enables organizations to take a holistic look at their entire supply chain. Thus, they’re able to optimize their processes to delivers ‘the maximum volume of on-time, in-full orders’.

2. Optimize Inventory

An increase in orders requires organizations to ensure warehouses and inventories are abundantly stocked and ready for delivery. Therefore, experts suggest streamlining their networks which includes ‘warehouses, 3PLs, suppliers, and in-transit stock’.

3. Maintain Efficiency

As supply chains strive to meet increased demands, they become complex. This complexity may sometimes hinder the customer experience. According to their findings, Inbound Logistics found 95% of global companies agreed that discrepancies had increased. Implanting SCO would help create better processes that stimulate progression through the coordination of the right ‘internal and external systems.’

Organizations should continue to focus on creating innovative and creative ways to improve the customer experience. This is primarily important today because of the incredible level of accessibility online shoppers have. Based on the above information, supply chain orchestration proves to be an effective way to ensure a positive customer journey. Therefore, organizations should continue to look at ways such as SCO to optimize their supply chains.

morai-blog-ebook-supply-chain-sustainability

From meeting consumer demands to building credible and corporately responsible brands, Supply Chain Sustainability (SCS) is integral to an organizations success.

In addition to achieving transparency, flexibility and speed, supply chains must also consider sustainability as a top priority. SCS encompasses the economic, social, legal and most importantly, environmental features of a supply chain. It helps reduce an organization’s carbon footprint, and also ‘builds brand awareness, mitigates risk and develops long-term profit opportunities’.

As Omni-channel transportation relies on a variety of transportation methods that release emissions, skeptics may argue that it’s very challenging for a holistic supply chain model. However, statistically “almost 90% of CEOs believe that sustainability is important to their companies success.”

This eBook by Morai Logistics, takes a comprehensive look at supply chains sustainability and identifies the benefits it provides organizations.

Integrating Sustainability Into Logistics and Supply Chain

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That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in what we do as a 3rd party logistics provider? Then don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Morai-Logistics-Blog-How-Supply-Chains-Stay-Competitive-in-a-Digital-Marketplace

To compete in today’s digital marketplace, supply chains must build a framework that prioritizes visibility, supplier diversity, technology and the customer experience.

Survey results from ‘623 supply chain professionals across 17 countries’, concluded that one of the top industry challenges was ‘facing global competition’. Over the last two decades, the competitive landscape of supply chain and logistics has changed considerably. The process of transporting product from A to B has transformed over the years.

The definition of ‘supply chain’ has also shifted over time. This correlates to the advancement of technology. According to Supply Chain Dive,

Because of its novelty and rapid changes in the world market, supply chain remains a controversial term – shifting per the user’s needs.

Morai Logistics recognizes the current shift facing supply chains today. A rise in ecommerce has enabled consumers to purchase products anywhere at any time, which has created a need for immediacy. Consumer demand has also increased expectations relating to lower shipping rates, faster on-time delivery and complete transparency. Supply chains must be predictive, preventative and proactive to ensure that transactions run efficiently and effectively.

However, technology also helps develop advanced tools that enable third party logistic providers (3PL) to gain a competitive edge. This blog post discusses how technology can be the driver of change to your supply chain, and how companies can gain competitive advantage.

Visibility

Statistics reveal that in 2017, ‘full supply chain visibility’ became the 3rd ‘most important strategic priority’. When it comes to supply chains, consumers place great importance on transparency. For instance, online shoppers like companies that offer updates on their transactions and shipments. They want to be involved in every step of the shipment lifecycle, and receive open communication and real-time responsive. Technology provides an unceasing transmission of insight in the form of big data. Numbers can translate valuable information that can guide companies to better predict inefficiencies. Advanced analytics help supply chains achieve visibility.

Customer-Centric Approach

On August 9th, 2018, Morai Logistics released an eBook entitled Customer Service: A Long Term Strategy for Future Supply Chains. Prioritizing the customer is extremely important because supply chains directly impact when and how products are transported. Statistics also reveal that 75% of businesses considered ‘services as more important than price’. According to Forbes,

Customer-centricity is the most desired business outcome of supply chain digitization.

As mentioned above, visibility plays a significant role in creating a supply chain that focuses on the needs and demands of shippers and suppliers. In addition, technology solutions can help deploy a customer-centric strategy by offering personalized customer experiences.

Technology – Centric Approach

As mentioned above, technology has been directly linked to improving the customer experience, in addition to overall efficiency. Adopting emerging platforms will enable supply chains to leverage advanced analytics, and also improve productivity through forecasting and inventory management.

Global research icon, Gartner, states that 65% of supply chain professionals believe that ‘adopting and investing in emerging technologies’ is a competitive advantage. Furthermore, ‘90% of companies’ that are ‘operating at stages four or five maturity levels outperform their peers’. These statistics confirm that to be an industry leader in this global market, supply chains must adopt technology.

Supplier Diversity

If you want to obtain competitive advantage, incorporate a supplier diversity program into your supply chain operations. According to Supplier Diversity Canada, including ‘under-represented businesses in a company’s supply chain’, you lead as an organization that values corporate social responsibility. Companies establish credibility and promote a customer-centric model by reflecting ‘their existing/targeted customer base’.

For supply chain and logistics companies to stay competitive in today’s global market place, they must learn to adapt. By prioritizing customer-centric models, visibility, supplier diversity and technology, they increase their advantage, which ultimately benefits their bottom-line.

morai-infographic-4-factors-to-consider-when-optimizing-your-supply-chain-cover

Supply Chain must implement strategic, innovative and customer-centric models to compete in today’s global market.

As the fundamental network that helps distribute product from point A to B, supply chains play an important role in an organization’s ability to deliver efficiently and effectively. Today, supply chains are facing a variety of challenges as a result of increasing consumer demands, complexity and unpredictability. Industry experts believe that an optimized end-to-end supply chain that is executed using a customer-centric model, can help address these challenges.

This infographic outlines the challenges facing supply chains in 2018. It further outlines how these distribution networks can optimize their processes to deliver efficiently and effectively.

How to Create an Optimized Supply Chain

morai-infographic-4-factors-to-consider-when-optimizing-your-supply-chain

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Morai-Logistics-Blog-prescriptive-supply-chain

Prescriptive analytics is a decision making model that can help supply chains meet the increasing demands that have resulted from the revolution of technology.

Now more than ever, the supply chain and logistics industry is under pressure to meet the unprecedented growing demands of consumers. In addition, they also must meet demands with efficiency and immediacy, while offering competitive rates and network opportunities. The impact of emerging technologies on transportation supply chains is a point of interest to a variety of industry leaders. It requires actionable initiatives that specifically analyze innovative ways for supply chains to improve their bottom line and transform to effective digital supply networks (DSNs).

Prescriptive Analytics is a critical approach toward helping supply chains achieve this transformation. Gartner Inc.defines this technology as:

A form of advanced analytics which examines data or content to answer the question “What should be done?” or “What can we do to make _______ happen?

This form of algorithmic decision making, enables companies to visualize actions that improve operations and capitalize profits. This blog post dives deeper into understanding the function and benefits of prescriptive analytics in supply chain management.

Prescriptive Versus Predictive Analytics

Advanced analytics can be described as being either descriptive, predictive or prescriptive. Their meaning can be broken down into fundamental questions that help businesses achieve an objective.

Descriptive        —————    “What has happened?”

Predictive         —————    “What could happen?”

Prescriptive       —————    “What should we do?”

In April, Morai Logistics discussed the imperative need for supply chains to improve transparency. We describe predictive analytics as a recommended technology that provides organizations with the technology to forecast and achieve real-time visibility. Joined by Artificial Intelligence and Machine Learning, this suite of tools help many industries such as retail, healthcare and transportation. What’s does prescriptive analytics bring to the table?

According to Digital Journal, the global prescriptive analytics market serves numerous markets including healthcare, information technology & communications, manufacturing, government and defences, and of course transportation and logistics. They share the following insight into the growth of this market:

Prescriptive analytics market accounted for USD 1.20 billion growing at a CAGR of 30.95% during the forecast period of 2017 to 2024.

In comparison to forecasting with predictive analytics, prescriptive analytics identifies how ‘business processes should evolve or be modified’. It’s an algorithmic decision making model that analyses data in order to take action. Applying this level of analysis can help any business understand how to effectively use their ‘resources, costs and capabilities’.

Benefits for Supply Chains

Transportation and logistics is a market segment that should utilize prescriptive analytics. However, their integration is comparatively slower to other industries despite feeling the pressure of consumer demand the most. Although there is a growing need for new and improved processes, many industry leaders fear the unknown of integrating a new technology tool. Supply Chain Management Review states that implementing prescriptive analytics is ‘a crucial analytics approach’. They further reinforce the following outcomes below as beneficial to improving supply chain management.

  • Create ‘visibility between the supply chain and finance’.
  • Provides managers with advanced platforms that help base decisions on fact-based scenarios.
  • Integration of predictive benefits such as cost reductions, forecasting and end-to-end visibility.
  • Create a prepared, informed and confident workforce.

Advanced analytics is a critical tool that should be integrated into any organization looking to achieve profit growth. Supply chains must continue to embrace technologies in order to meet customer demands, while creating a competitive advantage in changing markets. Predictive analytics is important because it helps supply chains understand future risks, challenges and outcomes. However, prescriptive analytics leverages data to devise action that will improve efficiency, immediacy and their bottom line.