Advanced Analytics Drive Better Planning
Technology has steadily advanced the analytic techniques that enable businesses to undertake the challenge of supply chain optimization. These have evolved from basic inventory optimization routines to more complex algorithms that address multiple objectives and constraints simultaneously. Analytics facilitate even complex scenario analyses to provide a more complete picture of the future. They have moved beyond merely being descriptive, explaining what just happened, to being able to prescribe one or more options. Prescriptive analytics suggest decision options and calculate the consequences that follow from each. This allows executives and managers to accelerate decision-making cycles because they can rapidly explore alternative courses of action and identify the best options because they understand the impacts of each. Being able to speed up decision cycles by quickly getting answers to “what if” questions can give companies a competitive advantage in today’s dynamic markets.