FOCUS ON – TRASPORTATION Photo: Krone
HOW PREDICTIVE ANALYTICS IS RESHAPING TRANSPORTATION MANAGEMENT Business success tends to require a good understanding of numbers, and this has only become more important in the age of big data. New technologies have made it possible for us to collect vast amounts of information, but the real benefit derives from what it’s used for. The author, Dennis van Bodegom is Director of Northern Europe at Shippeo.
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redictive analytics is described as “the use of data, statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data”, where the end goal is not only to understand what has happened but to provide the best assessment of what is going to happen in the future. This is done by leveraging science and analytical trends to create algorithms and formulas, which are fed market insights, economic data and other relevant data and 12 Industry Europe
trends to produce accurate predictions useful for decision making and planning.
Why the use of predictive analytics is growing Organisations are using predictive analytics more and more to help overcome difficult challenges and make new opportunities possible. Common uses include reducing risk and improving operations, detecting fraud, and optimising marketing campaigns.
By identifying patterns and preparing for the likelihood of events to come, companies can run their day-to-day operations much more smoothly. Predictive analytics are being more frequently used across all business functions, in different ways, to help anticipate events, avoid risks and create new solutions. This can have a significant impact on a company’s bottom line. For the manufacturing and automotive sectors, predictive analytics are used to
