Big data analytics is the process of examining large data sets (i.e. big data) to find trends and preferences. With UPS making a $1 billion investment in 2016, and logistics companies around the world following; the time is now to join the revolution.
Appropriately named, big data is precisely that—tremendous amounts of information collected from multiple sources including everything from operating systems, mobile devices, online activity, weather reports, customer interactions, and more. You take this mound of information and analyze it. It is in this process you see supply chain trends, patterns, and associations. From the analysis, a business can see where there are issues before they become problems. The analysis will also uncover opportunities to increase efficiencies and profits in the supply chain.
When it comes to logistics, big data analytics is an infinitely generous asset that can measure standards of customer service, cuts costs, and improves processes. In short, harnessed well, it will grow your business. Here are just a few ways it can quickly and positively impact your supply chain.
Package Status and Client Communication
The transportation industry is especially reliant on big data for tracking packages at every stage of lifecycle starting at dispatch. With it, the company always knows the real-time location of the package. Outside factors like traffic and weather are monitored so a more exact estimation of the time of arrival can be made. If for any reason a shipment is delayed, the company is notified and can proactively dialogue with their customer. This approach engenders brand loyalty and customer satisfaction.
Risk Analysis
Big data gives valuable insights into risk analysis via tracking. By knowing which carriers are slower or faster and which geographical areas pose a higher risk in shipment times, businesses are better prepared for producing and shipping, thus decreasing the risk of customer dissatisfaction. It identifies areas of waste in the picking process by showcasing every step so that it can be analyzed later. Frequent lifecycle reviews supported by big data can identify touches that can be removed without affecting quality.
Cost Savings
At the core of a supply chain is inventory. By deploying big data analytics, we can accurately control inventory systems resulting in turning inventory faster, reducing backorders, and increasing floor space for new inventory. This is possible because big data analytics gives an accurate picture of inventory movement.
Big data analytics is an invaluable resource when perfecting your supply chain. Whether you are looking to enhance the customer experience or find cost savings, big data analytics will give you an accurate representation of the lifecycle of your product. If you are looking for a partner to help you harness the power of big data to save time and money, please contact us.
