Predictive analytics cut supply chain costs by 8 percent

Predictive analytics has captured the fascination of supply chain executives because it offers the promise of forecasting potential problems in procurement, manufacturing and distribution before they happen. If supply chain executives can see the “problem coming,” they can take actions to offset or fix the problem, saving the company money.

How much then can predictive analytics reduce costs for supply chain managers and their companies? Nucleus spoke with 15 top supply chain managers about this nascent technology. On average supply chain chiefs believe that the use of predictive analytics can cut supply chain costs by at least 8 percent. But that’s the average. One supply chain executive at an equipment maker currently deploying this technology expects to slash supply chain expenses by as much as 30 percent.