Greg Holder, CEO and Co-Founder, Compliance Networks talks to Innovative Retail Technologies about predictive analytics’ impact on the retail supply chain, as well as the seven most effective methods for developing and deploying a vendor compliance program.
IRT: Predictive analytics continue to shape retail, specifically the supply chain. How do predictive analytics impact forecasting, replenishment, and supply planning?
Holder: Predictive analytics has proven to be a very effective emerging technology for mining data to improve forecasting. In the retail domain, a great example of the value of predictive analytics is demand forecasting, which is an essential input to the merchandising plan.
The extended retail supply chain is tasked with executing the merchandising plan, which is therefore an essential input to supply chain planning. So, as retailers improve the accuracy of their demand forecasts, they facilitate the extended supply chain’s ability to optimize execution of the merchandising plan. In turn, continually-improved merchandising plan execution provides demand planners with demand data that is less corrupted by supply chain failures and more effective for demand planning.
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