PREDICTIVE ANALYTICS IN SUPPLY CHAIN MANAGEMENT

Abstract

Predictive analytics (PA), which enables companies to make data-driven decisions that optimize performance, reduce costs, and increase productivity, has revolutionized supply chain management (SCM). This research looks at the effects of PA on several supply chain functions, including demand forecasting, inventory management, procurement, logistics, and warehousing. By adopting PA, businesses may improve operational efficiency, gain a competitive edge, and anticipate future challenges. The findings show that while PA offers numerous benefits, problems including low-quality data, high costs, and the need for qualified staff still keep it from being widely used. The ideas include using a phased implementation plan, improving data management, and investing in personnel development.