Predictive Analytics and Machine Learning for Real-Time Supply Chain Risk Mitigation and Agility

Abeer Aljohani ()
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Abeer Aljohani: Department of Computer Science, Applied College, Taibah University, Medina 42353, Saudi Arabia

Sustainability, 2023, vol. 15, issue 20, 1-26

Abstract: Supply chain agility has become a key success factor for businesses trying to handle upheavals and uncertainty in today’s quickly changing business environment. Proactive risk reduction is essential for achieving this agility. To facilitate real-time risk prevention and improve agility, this research study proposes an innovative strategy that makes use of machine learning as well as predictive analytics approaches. Traditional supply chain risk management frequently uses post-event analysis as well as historical data, which restricts its ability to address real-time interruptions. This research, on the other hand, promotes a futuristic methodology that uses predictive analytics to foresee possible disruptions. Based on contextual and historical data, machine learning models can be trained to find patterns and correlations as well as anomalies that point to imminent dangers. Organizations can identify risks as they arise and take preventative measures by incorporating these models into a real-time monitoring system. This study examines numerous predictive analytics methods, showing how they can be used to spot supply chain risks. These methods include time series analysis and anomaly detection as well as natural language processing. Additionally, risk assessment models are continuously improved and optimized using machine learning algorithms, assuring their accuracy and adaptability in changing contexts. This research clarifies the symbiotic relationship among predictive analytics and machine learning as well as supply chain agility using a synthesis of theoretical discourse and practical evidence. Case studies from various sectors highlight the usefulness and advantages of the suggested strategy. The advantages of this novel technique include improved risk visibility and quicker response times as well as the capacity to quickly modify operations. The development of a holistic framework that incorporates predictive analytics and machine learning into risk management procedures, setting the path for real-time risk identification as well as mitigation, is one of the theoretical contributions. On the practical side, the case studies offered in this paper show the actual benefits as well as the adaptability of the proposed approach across a wide range of businesses.

Keywords: machine learning; predictive analytics; real-time monitoring; supply chain agility; supply chain risk management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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