The logistics industry is rapidly transforming with the change in technology and use of data. The analytics tools and algorithms have made it easy for the third party supply chains, manufacturers, carriers, and shippers etc. to operate efficiently among themselves. All form of data may it be from the GPS, RFID or in the form of customer reviews is being utilised by the professionals to improve their business strategy and stand out from the rest. In this article, we have thrown light on the way in which data analytics is helping the logistics industry to function efficiently by taming logistics analytics. Read on to know more –
The different forms of data that can be retrieved from different sources to draw useful insights and prediction for the logistics industry.
- Enterprise data from operational systems
- Traffic & weather data from sensors, monitors and forecast systems
- Driving patterns, vehicle diagnostics, and location information
- Financial business forecasts
- Customer response data from advertising campaigns
- Patterns data from browsing websites
- Data from social media
What happens when data analytics is coupled with logistics industry?
Shipping Can Be Quickened
It was often said that the last mile in the shipping and delivery process was a “black box”, meaning that neither the customers nor the supplier knew exactly when the product will be delivered. However, with the advent of the internet and available tracking systems, this problem doesn’t exist anymore. Now, you might be thinking that how does data analytics come in picture? So here is the simple explanation. Every time a product is shipped starting from the manufacturer to the delivery destination, it is tracked and therefore generates data. This data comprises of time taken to reach a specific spot, the problems that occurred during the transportation and the limitations that were faced in delivering the product. Unavailability of the customer at home, a difficulty for a big shipment truck to find a place to park the vehicle in the urban area, not finding the correct address could be some of them. However, by using all this data the logistics companies can devise a plan that can assist them to make their delivery process smoother and hassle-free. For instance, a particular parking spot can be decided in the city from where the products can be further delivered using smaller vehicles and more number of people.
Business Transparency Can Be Improved
The entire logistics industry can benefit from the information derived using the data analytics tools and algorithms. The efficient use of data would not only help to boost the business but also improve the reputation of the suppliers. In order to understand it, assume that GPS has been enabled in the entire supply chain which makes it possible for the shippers, carriers as well as the customers to track the products. Carriers will know beforehand if the shipment is late and can reduce the bottlenecks that may appear in the supply chain. Also, this data can be used to induce transparency in the business by helping the punctual shipment company to gain more clients. Customers, on the other hand, can utilize this data to find a reliable logistics delivery company for their business.
Shipment Routes Can Be Optimized
If you are in the logistics business, you know that nothing is more embarrassing than not being able to deliver on time, as it negatively affects your clientele base and brand name. The data such as expenditure held on fuel, maintenance of vehicles, wages are given to driver and routes on which the vehicles move etc. can help you save a lot of time and make a fortune out of it. By using data analytics tools the logistics industry can optimize the routes taken by the vehicles to speed up the delivery process and improve their relationships with the customers. Other factors such as weather data, fleet maintenance schedules, road maintenance data etc. can also be incorporated into the systems and their patterns can be studied to gain an edge in the logistics market.
The Perishable Goods Can Be Delivered Proficiently
Large supply chains are often seen worrying about the delivery of goods that are delicate and are to be transported far away. Specifically, products such as eatables or certain chemical containing items may get damaged due to variable climatic conditions. In such a scenario the logistics company may decide to install temperature sensors in the vehicle. This data can be sent back to a central routing computer and monitored as well as saved for devising a future prediction model. From here, if the data suggests that the route taken up by the driver will eventually lead to more delivery time and damage to the goods. The driver can be timely informed and asked to follow another route.
Apt Location For The Warehouses Can Be Found
Warehouses can be called as the backbone of the logistics industry. Their location, flexibility and capacity play a major role in the efficient working of the supply chain. Data analytics can be used to assess the performance of the warehouses which can further be used to decide the location of a new warehouse. This data can also prove to be helpful in analysing the demand of the products in a particular area so that a particular warehouse can be equipped with the product in demand rather than the one that goes wasted or damaged.
Can Help To Gain An Edge Over Marketing
If you cannot market your product, there is no way that you’ll ever attract the potential customers. The right form of marketing is the key to a successful business. Consumers have become smarter and they always like to read about the product before making a purchase decision. Social media marketing has taken over the advertising platform and plays a major role in attracting the correct clientele. However, data analytics can be used to utilize the data collected from various apps and social media networks to devise a sales and promotion strategy for the logistics business. Keeping an eye on the recent trends and demands of the users the logistics industry can definitely serve better.
I hope after reading this article, you must have caught a gist of the importance that data analytics holds in the logistics industry. Put into right use data analytics can help different industries to flourish at a higher rate. Predicting demands and supply patterns based on customers’ needs will assure that there are no loopholes or delay in the services provided.