How can a logistics company keep up with today’s growing global market, when customers are used to quick gratification? The answer is straightforward: logistics analytics. By monitoring relevant data coming from various sources, you will be able to extract actionable insights to optimize your logistics operations. Backed with the right analytical tools, you can manage all of your logistics data in one place and visualize it in real-time. To put all of this into perspective, here we will cover the top benefits of implementing logistics analytics into your organization.
- Enhanced strategic decisions
The first benefit of logistics analytics is an enhanced decision-making process. In today’s digital world, making decisions based on intuition will not set you apart from your competitors. Your data contains a range of hidden insights waiting to be untapped, and using it to your advantage can allow you to efficiently monitor operations, detect trends and patterns, and spot any potential issues before they become bigger. By combining all essential logistics data, you can make strong strategic decisions that will lead your company forward.
- Real-time access to data
Probably more than any other industry, logistics can benefit from real-time data as its processes include many stages that need to be monitored constantly. If there is an error in transportation, it needs to be tackled immediately, as it can affect customer satisfaction. For this purpose, logistics analytics offer modern technologies such as interactive dashboards that allow you to visualize all your most relevant data in one place and in real-time. A logistics dashboard enables the tracking and reporting of key logistics KPIs related to warehouse operations, transportation procedures, and supply chain management as a whole. There are various dashboard examples for the logistics industry that cover different needs and scenarios. These cutting-edge analytics applications use sophisticated data analysis technologies to visualize and improve logistical processes.
- Reduced inventory costs with predictions
Another great benefit of logistics analytics is that it allows you to use advanced analytical methods to your advantage in an easy and intuitive way. For instance, predictive analytics technologies allow you to analyze your historical and current data to generate predictions about future demand. In the past, logistics companies covered demand based solely on past data and intuition, leading to a waste of money in overproducing. With logistics analytics tools, companies can accurately predict demand, understand seasonality effects, and prepare inventory accordingly. In time, this will significantly improve inventory management and reduce costs.
- Improved transportation strategies
There are many aspects in which data analytics can help improve transportation strategies for a logistics company. For instance, by using the right analytics technologies to look at traffic and weather data you can find smart delivery routes and considerably reduce delivery times as well as CO2 emissions and fuel consumption. Paired to this, you can closely monitor delivery vehicles and predict when they will need maintenance, as well as find improvement opportunities in driving habits such as speeding up, driving time, among others. Lastly, you can optimize and monitor loading times. Knowing how long it takes to load your fleet based on its weight allows you to calculate a specific time per ton and establish loading time goals. Optimizing this time will allow you to pack and carry more.
- Improved customer experience
Customers are the backbone of any organization and logistics is not an exception. By optimizing all the points we just mentioned, logistics companies can meet customer expectations and deliver quality products in time. Deliveries, as the last stage in the fulfillment of an online transaction, demonstrate your company’s efficiency and dependability. By backing your decisions with the right data, you will provide your clients with the right order at the right time. In time, this will significantly improve brand reputation and customer experience.
These are just a few of the benefits you can endure from implementing modern logistics analytics into your business. Making strategic decisions based on data will lead your logistics operations to be more efficient while lowering costs and increasing profitability.