{"id":248648,"date":"2022-11-01T08:10:57","date_gmt":"2022-11-01T08:10:57","guid":{"rendered":"https:\/\/imarticus.org\/?p=248648"},"modified":"2024-04-08T04:47:21","modified_gmt":"2024-04-08T04:47:21","slug":"how-to-make-the-most-of-your-supply-chain-and-analytics-certification","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/how-to-make-the-most-of-your-supply-chain-and-analytics-certification\/","title":{"rendered":"How to make the most of your supply chain and analytics certification"},"content":{"rendered":"

How to make the most of your supply chain and analytics certification<\/strong><\/h2>\n

There are mainly three types of analytic approaches to Supply Chain Management, namely, Descriptive Analytics, Predictive Analytics and Prescriptive Analytics. Descriptive Analytics gives us an insight into what has happened earlier in the same or similar business houses for Supply Chain Management. The process is basically acquiring, summarising and rationalising large datasets to project new business insights.<\/span><\/p>\n

\"Supply<\/p>\n

The process of predicting the future with the usage of historical data gathered and then using different statistical tools or computer-based complex algorithms is known as Predictive Analysis. Nowadays <\/span>Supply Chain Management Certification Course<\/a><\/strong> teaches Analytic Tools to prospective candidates. This is to forecast what will happen in the future. And the third mode of Analysis is Prescriptive Analysis. <\/span><\/p>\n

This Analytics deals with real-time operation research tools to find out the correct decisions that shall lead to the best results in Supply Chain Management. This can be performed by several optimisation techniques. Predictive Analysis is the future trend of Descriptive Analysis, if there is no course correction. When the corrective measures are taken based on operation-based research and model simulation through computer-aided algorithms, the percentage of error in the Supply Chain Management process is reduced and thus the process is called Prescriptive Analysis, which ultimately leads to a 6-Sigma process i.e. a process with minimum error tolerance.<\/span><\/p>\n

Predictive Modelling in forecasting Supply Chain Elements<\/strong><\/h2>\n

Predictive Analytics examines all possible scenarios encompassing demand planning, cost, profit, inventory optimisation, logistics and much more. Predictive Modelling allows companies to gauge anomalies in their Supply Chain network and responds accurately given past conditions.<\/span><\/p>\n

Predictive Modelling generally leads to two types of forecasting errors \u2013 overstocking and understocking. While overstocking creates havoc in the inventory and cash flow for all the stakeholders in the supply chain, understocking tends to make customers unhappy, making them turn towards competition.<\/span><\/p>\n

Since any business would like to avoid the understocking situation, keeping more stock is better. However, overstocking leads to the Bullwhip effect. Excess inventory increases from retailers to wholesalers to manufacturers to vendors.<\/span><\/p>\n

Thus in order to make Predictive Modelling more reliable, additional data other than the historical ones are required. Though used in the recent past, Predictive Analysis has proved to be of immense support to the planning team in a manufacturing set-up.<\/span><\/p>\n

Why do Organisations use Predictive Analytics nowadays?<\/strong><\/h2>\n

\u00a0Most of the business houses operating in Supply Chain Management are using Predictive Analytics in the recent past to increase their profitability percentage and volume. The key reasons are the following \u2013<\/span><\/p>\n