Predictive analytics for inventory optimization is the practice of using data-driven models and insights to manage inventory levels in order to maximize profits and minimize costs. By forecasting customer demand and predicting upcoming trends, companies can ensure they have the right amount of stock on hand at the right time—essential for staying ahead of competitors and improving customer satisfaction. Additionally, predictive analytics can help businesses better understand their supply chain bottlenecks, find new suppliers and optimize logistics timelines. Ultimately, predictive analytics enable companies to make fact-based decisions that will drive their business forward.