How Does Data Analytics Support the Logistics Industry?
Utilizing data-based solutions in logistics and transportation can help improve several areas of your company. Data analytics can give you an accurate representation of the condition of your:
- Supply chain
- Shipping times and delivery
- Cost-effectiveness
- Areas in need of improvement
Supply Chain
Your supply chain will be where most of your data is produced. With so many moving parts, a massive amount of data is created that needs to be sorted through. While translating the data can feel overwhelming, it’s invaluable to optimizing your supply chain.
With the help of supply chain management services, you can use predictive analytics. Predictive analytics is the gold standard in logistics data analytics for benefiting your company and organization. Predictive analytics allows you to project supply and demand for the future. This knowledge enables you to stock your products appropriately and reduce waste or excess inventory.
Shipping Optimization
To maintain customer satisfaction, you must accurately anticipate and communicate your expected shipping times. Data analytics is a vital tool in being able to predict this accurately.
Not only will data show you, on average, what your shipping times look like, but it can also show you optimal routes or transportation methods that could improve your shipping and delivery and reduce any delays. You can even use data to predict if delays can be expected and relay the information to your customers upfront or avoid the problem altogether.
Analyze Costs
One significant benefit of data analytics in logistics and transportation is that it shows precisely what money you are spending and where it’s going. With the numbers laid out, you can see where costs need to be reduced or areas where you have room to invest more funds.
Transparency with your funds can help you plan out a budget. Creating a clear, accurate budget with the help of data analytics puts you more in control of your profits and business costs. You can make informed financial decisions without guessing what budget cuts or increases will best benefit your organization.
Areas to Improve
Data analytics lays out a precise picture of everything in your business. Seeing everything from an unbiased view of numbers and statistics can help you identify areas for improvement. Where are the numbers not what they should be? For example, would using train transportation be more profitable for your product, but you’re using air travel for shipping?
Without data analytics, knowing exactly what is eating into your profit margin and where your business is being held back can be challenging. Taking a step back and being able to analyze the data allows you to reorganize your business model to account for any gaps or substandard performance.
Analyze All Your Logistics Data with CWI Logistics
When you decide to go with a 3LP company like CWI Logistics, we gather and analyze the data of your transportation logistics for you. We believe that transparency is key. That’s why we offer a client portal where you can see all the data surrounding your inventory and shipments in real-time. If you want to begin using data-based logistics solutions today, contact us to learn how CWI Logistics can best support you!