What is Prescriptive Analytics?
What is Prescriptive Analytics?
Prescriptive analytics goes beyond diagnosing a problem or predicting the likelihood of an event based on historical data. Instead, prescriptive analytics leverages different forms of mathematics and logic to prescribe an optimal, executable action. It empowers decision makers with the ability to answer the question “what should I do in order to maximize all of my objectives, given the many complexities in my organization and the market?”
Prescriptive analytics has the most significant impact on large-scale business objectives like profit, cost of goods, service levels, risk mitigation, and decision-making agility. River Logic’s technology delivers prescriptive analytics through optimization. Optimization offers several advantages over spreadsheet- or database-reliant approaches that rely on one or more hypotheses. Optimization is able to:
The current market penetration for prescriptive analytics is roughly 10%. By 2021, it is expected to rise above 35%. Thus, it’s crucial for business leaders and technology decision-makers to educate themselves on this category of advanced analytics.
For this reason, River Logic has created an interactive guide to help people like you understand the following aspects of prescriptive analytics:
“We as a company make decisions dramatically different than we did five years ago because of River Logic. We exited an entire business because we realized it was unprofitable.”
Matt Yaun, Chief Administration Officer, Cox Industries
“We were attracted to the flexibility of River Logic. We can determine things such as where and how to blend coal, adjust plans based on customized multi-criteria optimization, and simulate financial flows. We will continue to use River Logic to streamline our efforts for determining functionally-aligned plans that optimize our performance objectives.”
Head of Planning at a large Mining company
“The implementation of River Logic makes it possible to plan the delivery time and cost of each postal item, choosing the most optimal routes. This allows us to not only meet delivery deadlines but also to deliver mail faster than the norm and identify bottlenecks in the production and logistics network to promptly eliminate them. Moreover, the system has reduced logistic costs by 10-15%.”
Alexey Skatin, Deputy General Director for Logistics, Russian Postal Service
Many companies fear that their business is too immature to embrace prescriptive analytics. This video will help you decide if you’re ready to take the next step.
The Benefits off Prescriptive Analytics to Your Business
Companies like PepsiCo are all working on moving from the traditional descriptive and diagnostic analytic capabilities to prescriptive analytics. Adopting prescriptive is critical for supply chains to gain a competitive advantage now and in the future.
Leslie Keating, EVP Supply Chain Strategy and
Transformation, Advance Auto Parts, Former SVP PepsiCo
Not Sure if River Logic is Right for You?
River Logic offers free assessments to companies like yours in order to determine the potential value you could gain from adopting our technology to address your toughest planning and decision-making challenges.