How Big Data Analytics Can Help Optimize Your Supply Chain
Big data and predictive transportation analytics are transforming the supply chain industry in incredible ways. More and more, transportation companies are considering predictive analytics a crucial component of doing business. As the global transportation and logistics market continues to grow, new complexities such as health-related closures, capacity issues, global regulatory changes, and other factors drive shippers to seek better solutions.
An individual transportation company may collect large quantities of granular internal data over time, but that’s not enough to extract the maximum possible value. It takes all kinds of disparate sources, including historical supply chain network data, pricing information, competitor insight and research, weather data, and region-specific statistics. The use of predictive transportation analytics makes it easier for supply chain managers to analyze these vast datasets, plan transportation and logistics routes, and avoid delays, capacity issues, and high costs. For more about using the right data to optimize your logistics spend with clear, actionable insights and better supply chain visibility, check out our Infographic: Does Your Supply Chain Analysis provide the Best Insights?
Many logistics networks spend far too much time and money on transportation management systems to track and manage shipments and lead times. With big data and predictive transportation analytics, supply chain and mode managers can better optimize their networks to minimize future disruptions and proactively manage operations with data-driven decisions.
How Big Data Analytics Helps Enhance Global Supply Chain Logistics
Better Customer Experiences
Analysis of more varied data types, including competitor information, regional logistics data, weather, and various market trends, can help transportation companies improve the customer experience. Gathering customer feedback regarding delivery and returns also provides essential logistics data that helps understand their needs better and deliver improved user experiences and operational efficiencies and reduce waste.
Accurately Forecast Demand
Instead of relying on dated, inflexible systems and potentially inaccurate sales predictions, transportation companies now have access to vast and complex data from various sources, including suppliers and customers. Big data improves demand planning through the ability to predict and determine what items will be needed as it pertains to demand. You can see what items are selling, what items aren’t, and much more, enabling you to optimize spending further and extract additional value from your existing network.
Having more of the right logistics data enables you to easily optimize orders and the overall ordering process. You can improve the number of timely supply orders, reduce the costs of receiving supplies, and be confident you have everything needed to facilitate the most efficient shipping solutions possible.
Solve More Complex Distribution Network Problems
One of the most attractive aspects of better transportation analytics is real-time supply chain visibility and execution. Many complex distribution networks develop organically over time into a tightly knit web of factories, warehouses, and distribution hubs which can struggle to adapt quickly to sudden needs or urgent demands. Real-time visibility allows companies to deal with this complexity more efficiently and solve complex distribution network problems by modeling outcomes in detailed scenarios and implementing changes within moments.
Big data and real-time supply chain visibility help eliminate worries about where items are, what they are doing, or if changes need to be made. The use of big data can make a huge difference in helping to ensure the right items continue coming in as needed, rather than having to guess where items are and if they’ll arrive on time. Monitor items from minute to minute, check the status of shipments, and much more at the touch of a button.
Improve Route Planning Efficiency
The enormous amount of available location data combined with the latest advanced geo-analytical mapping techniques allows companies to model more potential routing scenarios and dynamically visualize those routes more dynamically at street level. Big data and predictive transportation analytics enable network specialists to optimize planning and scheduling through highly enhanced visibility, so you always know where your freight is located and can make split-second decisions if an emergency arises.
Improve Collaboration Across Your Supply Chain Network
The increased data available to supply chain managers is an opportunity to optimize the management of complicated networks and develop greater collaboration and improved communication and response times. No matter how unlikely the event or when it occurs, you and your partners and clients will be better prepared to adapt. Even when something as significant as COVID forces company-wide and industry-wide changes, you’ll be able to manage any products, timelines, and workflows that are new to your business or inventory. Having the right data connected in the right ways allows you to predict the future, optimize the resources to purchase or forgo, and manage those resources.
Improving collaboration to optimize big data may require a technology investment, but that’s not all. Your company culture and staff across different business functions need to be involved in the process of identifying which data is useful to them. Supply chain managers need to focus on collecting consistent, high-quality data at a strategic level. Valuing team members who maintain a high standard of data collection is as important as your investment in analytical technologies and techniques.
Does Your Supply Chain Analytics Provide Best-in-Class Insights?
Now that you have a better idea of how powerful big data and predictive transportation and supply chain analytics can be to any business, start thinking about how you can make optimizations within your network. Our new Infographic: Does Your Supply Chain Analysis provide the Best Insights? will help you determine if you’re using the right data to optimize your logistics spend and get clear, actionable insights and cutting-edge visibility into every layer of your supply chain.
Contact the experts at CLX Logistics to learn more about CLX Gravity, an analytics platform designed to meet the needs of modern supply chains.Back to Resources