Prescriptive analytics to make well informed SC decisions

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

        Digitization has enabled businesses to gather humongous amount of data on real-time basis.Still, if businesses fails to process this data efficiently in order to gain valuable insights, it becomes a bane instead of boon. For the same reason, businesses nowadays are relying heavily on analytics to take well informed SC decisions.

        Though predictive analytics has opened the door to futuristic insights, what really matters is how we could act on this foreseen insight. Prescriptive analytics could play a key role in finding solutions to upcoming problems. Integration of prescriptive analytics to digital SC could considerably improve the decision making process.

        Prescriptive analytics makes use of machine learning to help businesses decide a course of action based on a computer program's predictions. It gives us insights on how the company should  operate in order to achieve desired outcomes. For example, it could help us to determine the optimal warehouse locations, minimize delivery time and costs across its supply chain etc. 

 

 

Advantages of Prescriptive SC Analytics in SCM:

• When businesses fail to connect various internal and external data points, they are forced to make inappropriate decisions based on their gut feelings. Prescriptive analytics enables the businesses to analyse a multitude of data on a much wider scale and evaluate multiple scenarios before making a decision.
• With access to necessary information, prescriptive analytics can help businesses to make strategic decisions at a minimum cost. It gives a variety of possible choices by considering factors like business risks, external weather factors etc. 
• Implementation of prescriptive analytics could result in major cost savings for the company and it enables the businesses to gain extra clarity into their operations.

       With increased digitization, the need for a well reliable and supportive analytics would become inevitable.