Automated management and evolving logistics continue to gain traction within the modern supply chain. As more shippers and logistics managers begin to focus on freight analytics, the need for a concise and reliable way to deal with everything involved becomes painfully clear. Supply chains produce and utilize a great deal of data for analysis and statistical tracking. Supply chain insights and freight audit data and analytics make it much easier to process, analyze and apply all that data practically and effectively.
Uncovering patterns and generating insights by applying technology and software is just one of the goals of practical freight analysis. According to IBM, “Supply chain analytics is also the foundation for applying cognitive technologies, such as artificial intelligence (AI), to the supply chain process. Cognitive technologies understand, reason, learn and interact like a human, but at enormous capacity and speed.” Freight data analytics relies on bringing together different processes, integrating them effectively, and then applying the data to improve automated management processes further. Still, it all starts with the data analysis triad and supply chain management.
Using Data Effectively is Critical for Supply Chain Management
No matter what current market trends are in effect or the state of the supply chain, there is one constant — things constantly change. Disruptions are the norm for supply chain managers, but knowing what disruptions are more common and picking up on cycles and trends sooner rather than later is a significant part of freight analysis. Supply chain analytics can help freight transportation and shipping companies make more intelligent, quicker, and more efficient data-backed strategies and decisions.
Well executed shipping analytics bring with them not only data and insights but several benefits, including the ability to:
- Reduce costs while boosting profit margins. Access to specialized and comprehensive data simplifies the process of integrated planning within the supply chain. Real-time visibility and bringing together disparate data are critical to achieving actionable insights. Shipping analytics, along with solid freight metric analysis, helps shippers improve profits and keep expenses low by reducing errors and ensuring accurate budgeting, invoicing, and payments are maintained. The ability to analyze landed cost by SKU to assess when free shipping is acceptable and what SKUs may not be worth shipping.
- Better management of industry risks. Supply chain analytics make it easier for managers and team members to keep up with current industry trends. Robust analytics can identify known risks while also helping shippers plan for potential future threats. Freight analytic processes do this by spotting patterns and trends throughout the supply chain and presenting that data in a clear and easy-to-follow report. With solid analytics, companies more easily monitor and prepare for changes in customer demand and market trends.
- Increase accuracy in route and mode planning. When analytics in the shipping industry is applied correctly, that insight can help a business better predict disruptions and shifts in market factors. Everything from rate increases to rising fuel costs to capacity crunches becomes easier to navigate with accurate statistics on hand. Choosing the suitable carrier, mode, and shipping options get easier with clear insight into past and potential future trends.
Advanced freight data analytics can effectively provide an organization with a distinct competitive edge when properly analyzed and applied to real-world situations. Freight network optimization is a critical part of automating processes throughout the network. Accessing data and using it sooner than others provides vital insights into the market and can help management stay ahead of the competition. Automated processes, secure freight analytics, and real-time application allow shipping companies of all sizes to experience better growth and higher levels of success.
The Freight Data and Analysis Tirad — What You Need to Know
Managing freight analysis and industry insights are vital to maintaining forward momentum and continued growth, especially during recovery and instability. The supply chain represents the first and most memorable aspect of the shipping and transportation that customers and consumers engage.
The better a company manages its supply chain and freight analytics, the better its overall reputation among customers. As highlighted by ScienceDirect, “Shipping is a heavily regulated industry and responsible for around 3% of global carbon emissions. Global trade is highly dependent on shipping which covers around 90% of commercial demand. The industry is expected to navigate through many twists and turns of different situations like upcoming regulations, climate change, energy shortages, and technological revolutions.” Freight data analytics directly impacts supply chain logistics and shipping services.
However, far too many people, even those who work with freight contracts themselves, do not have a clear understanding of the freight analysis triad, which includes these three data types:
- Descriptive: Data that describes what happened and why it likely occurred. Provides visibility and more precise insights into the vents and situations that arise. Working with a single source of truth across the supply chain helps management coordinate and respond to internal and external events.
- Predictive: Data that helps shippers know what is likely to happen. It provides valuable insight to improve predictive planning and gives management a better look at possible outcomes or future scenarios. These business implications and market impacts can also help mitigate disruptions and risks better.
- Prescriptive: Data that guides users on how to apply data for the best outcome. Freight data helps shipping and transportation companies efficiently address and solve problems by offering collaborative and actionable steps. It also highlights opportunities to collaborate with third parties to reduce supply chain disruptions.
Freight analysis and supply chain optimization work together to improve automated management and internal processes in the following key areas:
- Overall Connectedness – Accessing insightful data from multiple sources and bringing them together into a single source of truth is a crucial benefit of analytics in the shipping industry and global supply chain networks.
- Collaborative Opportunities – Improving collaboration with team members and third-party partners is easier with cloud-based networks that allow for easier sharing of shipping data analytics and foster good collaborations.
- Security Preparedness – The supply chain has a significant weakness in the areas of security and preparing for general rate increases and fluctuations which is why protecting freight data analytics is so important.
- Insightful Automation – Automation continues to optimize more and more areas of the modern supply chain, and self-learning and machine-assisted processes rely heavily on solid shipping analytics and data-based insights.
- Comprehensive Application – Analytics capabilities must focus on scalability and adaptability in the current state of the market as latency is unacceptable, especially with the focus on freight analytics growing all the time.
Freight analytics and automation within the supply chain industry allow for faster and easier integration of cognitive technologies, such as artificial intelligence, machine learning, and automated processes. This advanced form of supply chain analytics speeds up recovery and scalability during current market disruptions and helps prepare shippers and freight companies for the future.
Benefits of Effective Freight Data Analytics
With proper implementation of freight analytics data, supply chain management and transportation consultant team members can enjoy many benefits. Partnering with industry experts like Intelligent Audit enables customers to take full advantage of shipping data analytics and the services that make continued growth and success possible. Industry experts can help shippers and freight companies improve overall business intelligence and help them:
- Tap into real-time data and insights that enable data-driven decision-making in the face of disruptions and deviations in regular freight transport and logistics.
- Speed up anomaly detection and problem identification in multiple areas of the supply chain network through faster data processing and application.
- Respond to disruptions fast and accurately by implementing customized plans and procedures specifically designed for company and industry needs.
- Compare shipping and transportation options to choose new modes and shipping options when needed to respond to events happening in real-time.
- Achieve an overall streamlined, automated process that allows team members and third parties to collaborate and manage as efficiently as possible.
Partner With Intelligent Audit Today and See the Difference the Right Company Can Make for Freight Data Analytics
On their own, freight data analytics and supply chain technology advancements can only do so much for a shipping or transportation company. Data can only do so much without knowing how to apply analytics in the shipping industry networks and how to take advantage of automated management options. Providing a framework for interpreting and using supply chain data and freight analytics remains a critical piece of the transportation puzzle. To get the most out of current freight analysis and collection opportunities and see what improved management can do for your company, a partnership with leaders in the industry is necessary. Contact Intelligent Audit today to learn more about making shipping data analytics a priority for your company.