Topic > Descriptive and Predictive Analytics - 1234

Descriptive analytics is about describing historical performance. By applying these techniques at the performance level, information can be very specific to product, customer, channel, supplier and other key operational areas of interest. This will help validate the data to organize and use in a repeatable process, in order to have confidence in the information and make it actionable. This will help companies evolve from the “standard cost to serve” approach to the “total cost to serve” approach, thereby identifying immediate cost and revenue opportunities and taking confident actions to utilize them. Prescriptive analytics is about identifying optimal business outcomes by combining historical data, mathematical models, variables, business rules, constraints, anticipated customer requirements, machine learning algorithms. It is also used when real-world experimentation would be very expensive or excessively risky or take too long. Many airline ticket pricing systems use this analysis to select complex combinations of travel factors, demand levels, supply constraints and purchase times to present potential passengers with prices designed to optimize profits while maintaining sales levels. Predictive analytics is about predicting future, unknown events, failure points based on statistical techniques. Predictive analytics enables Demand Driven Value Networks (DDVN) through segmentation, sensing and modeling of demand and profitable response. This will help transform the SCM model which previously relied on aggregate information, averages and generalized models into a personalized response based on the unique characteristics of customers, products or suppliers or any other supply partners...... middle of the paper ...services to the market. The Digital Supply Network is connected to the final consumer. As companies sell products, information can be shared throughout the supply chain, helping retailers and manufacturers keep an eye on inventory. And as customers search for information about the products or services they purchase, companies can more easily have information at their fingertips to reassure the socially responsible consumer about how something was produced and the raw materials it came from. Physical assets such as plants and equipment will remain central to manufacturing as of now, but these can be woven into the digital supply network, which is enhanced by mobility, cloud, social media, analytics and big data solutions. Below are some of the complex areas where digital supply chains can deliver amazing results and help the organization overcome persistent challenges.