Optimize your Supply Chain with Prescriptive Analytics

1. Optimize your Supply Chain with Prescriptive Analytics Advanced analytics is becoming a necessity in business planning processes, with manufacturing companies becoming complex and leveraging more data. It analyzes real-time data, predicts future scenarios, and prescribes profitable decisions on the spot. To build a smooth and efficient supply chain, businesses need to bolster their decisions with advanced analytics, and the advanced analytics should be in the hands of decision-makers and not in the hands of the IT sector. Now the time has come when supply chain managers need to plan ahead and keep the flow of goods moving which allows the supply chain system to work smoothly. Prescriptive analytics is also a type of advanced analytics that optimizes business decision-making and plays a significant role in transforming the supply chain systems working on components like products, vehicles, facilities, and routes. Prescriptive analytics optimizes decision-making by providing a recommended action and is used across industries to answer complex planning questions. It is a type of data analysis on raw data that help in making better business decisions. It determines the best solution using advanced analysis techniques to find the best solution among different choices. It makes use of historical data and determines results based on different variables. Prescriptive analytics make use of artificial intelligence, sets of algorithms, as well as machine learning to provide suggestions based on outcomes. It makes use of artificial intelligence and machine learning power to understand the data and advice on future action. Prescriptive analytics work along the predictive analytics and make use of advanced statistical techniques to analyze historical data. Prescriptive analytics work on algorithms called Heuristic that finds a solution to the problem using a shortcut method by sacrificing precision, accuracy, and optimality. The other algorithm on which it works is Exact which finds the best answer to a problem with great accuracy, though the time taken to solve the problem increases compared to the size of the problem. Prescriptive analytics is undoubtedly a better option compared to earlier ERP system that does not predict the future course of action. Most analytics solutions provide insight into what happened in the past but do not provide insight into what will happen in the future. However, prescriptive analytics

2. determine future supply chain challenges using statistical modeling techniques to create an ideal supply chain model. Prescriptive analytics makes use of different forms of structured and unstructured data to evaluate conditions that may affect the supply chain cycles. Prescriptive analytics make use of advanced analytics and artificial intelligence to decide upon future action to handle supply chain challenges and achieve all business goals. Businesses can make use of past shipment and order data to find where additional inventory should be stored to meet the demand of nearby customers and avoid stockouts. Businesses can also determine product's seasonal and geographic trends and accordingly adjust inventory levels. Businesses can also make use of pricing and profitability data to determine reasonable prices with their manufacturers, suppliers, and partners and ensure accurate billing. Summary - Prescriptive analytics make use of embedded decision logic rules to determine the action plan in a certain situation. It is the most advanced analytics that provides the best solution depending on specific business variables, inputs, and objectives.