From digital transformation to the Internet of Things (IoT), the world of industry has undergone major upheaval since 2010. The arrival of supply chain 4.0 is one of the notable changes. The result of integrating the latest technical innovations into the heart of the supply process, it allows companies to reduce costs, improve productivity and optimize performance. Working in conjunction with predictive analysis, it also helps to anticipate and forecast future developments.
What is predictive analytics?
Also known as predictive logic, predictive analysis is a technique that combines analysis and statistics. By studying historical and present data, it offers companies the possibility to imagine the future. Predictive analysis allows us to anticipate risks and new trends and to adapt accordingly.
The predictive models resulting from predictive logic are developed from algorithms based on data mining. While they are by no means infallible devices, predictive systems are valuable tools that fit perfectly into supply chain 4.0.
Facilitate decision making and anticipate the future with predictive analytics
Originally, the supply chain worked with sequential and linear organizations. The irruption of new technologies and Industry 4.0 has changed the game. From suppliers to customers, all players in the supply chain now operate in an increasingly interconnected world where dynamism and agility are the order of the day.
Just like industrial maintenance, the supply chain is now facing a paradigm shift. The growing importance of new technologies and Big Data systems have contributed to the emergence of the notion of “forecasting” within the supply chain.
In this way, needs are anticipated efficiently and decision-making is simplified. The operations are also determined in real time and no longer according to a pre-established schedule.
The fields of application of big data and predictive analysis in supply chain 4.0
Better product traceability, cost reduction, and increased performance are all challenges faced by players in all industrial sectors.
Based on technological innovations, supply chain 4.0 in the supply chain helps to make the right decisions at the right time. Applied to the supply chain, big data and predictive analytics allow in particular:
- better control inventory and transportation networks;
- improve customer service;
- perform preventive maintenance;
- adjust distribution flows.