How predictive analytics are disrupting manufacturing
Business intelligence tools let you slice and dice historical data to reveal what happened in the past. That’s a lot better than not knowing. But unfortunately, no management team can change history by analyzing it. To get a grip on what’s coming up next – and take corrective action before it’s too late – manufacturers are increasingly turning to predictive analytics that leverage recent transaction data to generate highly accurate forecasts.
Profit Velocity is a leader in predictive analytics in manufacturing, delivering remarkably precise, forward-looking projections that reveal the impact of realistic business scenarios.
Our predictive analytics platform gives you the answers to questions like:
- What will be the net profit impact of a jump in the cost of a certain material?
- What practical adjustments can we make if we lose volume of a given product?
- How much productivity gain would we need to offset a product’s price decline?
- If we execute our SKU rationalization plan, how much machine capacity will we free up for other products? How can we best redeploy that capacity?
- Can we still hit our revenue and profit goals without CapEx investments if we adjust our product mix?
Profit Velocity’s unique time-based profit analysis, planning and control platform provides management teams with a remarkably reliable view of what’s coming next – even when several key variables (such as prices, costs, volumes and production rates) are all in flux at the same time.
The key to Profit Velocity’s ability to see the future clearly hinges on a unique way of measuring the physical speed at which different SKUs generate money as they flow through production. It’s a method that requires just a handful of readily available data elements in order to measure profit per time.
To get the best look ahead, most manufacturers upload their latest monthly sales and production results. Up-to-date sales forecasts can also be loaded to provide a realistic picture of what the upcoming month or quarter will yield.
In a world where the pace of change is accelerating, the ‘rear view mirror’ provided by business intelligence tools is simply not good enough. Wringing powerful insights from the data you already possess to accurately predict your manufacturing profit margins – and what you can do now to protect them – is becoming essential to competitive survival.
Increasingly, predictive analytics in manufacturing is taking the guesswork out of forecasting. This allows your management team to take positive action before the market hammers your bottom line.