Predictive Analytics: Facilitating the Process of Supply Chain Automation

Abstract

Supply chain management (SCM) is a critical management function in any organization. After the pandemic in 2019, the global supply chain faced drastic disruptions, compelling policymakers worldwide to seek ways to manage them. Integrating artificial intelligence (AI) technologies into supply chain processes has revolutionized it. Predictive analytics is a vital tool that helps supply chain managers anticipate future trends and make informed decisions. Based on statistical principles and machine learning algorithms, predictive analytics encompasses techniques such as linear regression, decision trees, cluster analysis, time series models, and logistic regression. Unlike traditional supply chains, which often lack visibility, supply chains integrated with predictive analytics offer enhanced transparency. Mastering these intelligent technologies becomes imperative for organizations seeking to thrive in today's dynamic market landscape. This chapter provides readers with a comprehensive grasp of predictive analytics and its indispensable role in SCM processes.