Advanced transportation analytics has great value for both shippers and logistics service providers (LSPs). This value appears in many forms that offer a significant amount of data, providing shippers and LSPs with precious shipping analytics that help make any business function as efficiently as possible. According to Gartner, "Transportation leaders need to gather, analyze and apply data to drive effective supply chain decisions that in turn, will help manage costs. This is specifically true in transportation, where they are confronted with continuous variability and very large amounts of data are generated."* But that sentiment is not isolated to Gartner. As further explained by McKinsey & Company, "Even basic analytics can deliver value, so companies should not hesitate because they believe they need perfect data." Shippers and LSPs should see investment in advanced transportation analytics as an invaluable resource and recognize these top trends.
Of all the rapidly improving technological innovations, advanced analytics has become the most sought-after specialized area for shippers and LSPs. The benefits that emerge from investment in advanced transportation analytics make this the most coveted of any modern technical field for shippers. These analytics beat out all other transportation technology areas, including blockchain, artificial intelligence, chatbots, and many others. Because of this, advanced analytics has emerged as the most valuable technological asset for shippers and LSPs.
One of the many unique benefits available through advanced transportation analytics comes from insight into driver behavior. Through data acquisition regarding driver behaviors, shippers can maximize trucker profitability based on the analytics insights. Shippers can track several vital factors and costs accompanied by drivers, including fuel usage, idle time, distance traveled, rapid acceleration/deceleration, and several others. Once collected and organized, this information makes for an excellent resource for shippers and LSPs. Additionally, that insight leads to a better understanding of maximizing on-time delivery and driver performance.
In addition to greater insight into previously inaccessible data, advanced transportation analytics assist with better end-to-end transportation modeling and forecasting. The data acquired allows shippers and LSPs to manage every step of the supply chain to increase efficiency and profitability.
Usage of advanced transportation analytics encourages mode mix, including parcel, so that shippers and LSPs can lower freight costs. Balancing the use of different modes, including multimodal shipping and understanding the ins and outs of each shipment's most optimized route, will go a long to keeping total logistics costs in check.
Analytics also helps to find inefficiencies so that shippers and LSPs can boost collaboration. This results in reduced costs and better communication throughout the industry. Advanced transportation analytics eliminates inefficiencies and fosters collaboration.
Advanced analytics will also support artificial intelligence (AI) and machine learning to unlock new insights within the various freight fees and costs associated with every activity. This means that the implementation of advanced analytics will help the shipping market expand, growing smarter, and help individual companies, including those of smaller size, become more strategic.
The use of advanced transportation analytics also increases invoice auditing and recapturing overspend. This means that shippers and LSPs can better monitor freight settlement to prevent over expenditure. In turn, advanced monitoring and actionability of data leave shippers and LSPs with more money in their pockets. Of course, that adds to recapturing lost revenue that may have otherwise resulted in overpayment due to an invoicing error. While exact statistics vary, up to 25% of invoices contain at least minor errors. Even if that rate were deduced to 1%, it still represents a single error that could add to significant overextension of the budget.
The numerous benefits accompanied by the usage of advanced analytics are apparent. The modern market leaves little to no room for inconsistencies, making usage of data analytics all the more important for shippers and LSPs. Analytics-driven decision-making helps ensure that any shipper or LSP makes the most out of the data available. Connect with Intelligent Audit today to get started.
*Gartner, How to Take Advantage of Advanced Analytics in Transportation, August 2020
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