The key to better logistics is a streamlined system that utilizes business intelligence and processes that yield transportation optimization. However, the efficacy of optimization, guided by business intelligence is only effective if you have quality data history and validity that provide actionable insights. There are ample devices and systems that pour data into the supply chain. Companies who ship multiple modes and at a large volume need to consider where the data comes from and how it’s used.
Consider this. As reported by PYMNTS.com, “That includes the embrace of the Internet of Things (IoT), where fleet vehicle electronic logging devices (ELDs) and sensors can gather and transmit a greater level and quality of granular data, promoting capabilities like real-time product tracking or the monitoring of temperatures as products move.” Working with old and outdated processes greatly limits what a supply chain is capable of achieving. Now, enterprises worldwide are turning the tables and looking for ways to enable continuous transportation optimization using a combination of technology and expert provided solutions. That makes these technologies and solutions, including analytics and business intelligence, essential for success for those seeking optimization of transportation decisions that lend themselves towards a reduction of operational costs and gained efficiency.
The Challenges of Limited Transportation Technology and Data
While they may have worked in the past, outdated systems and processes must be turned into automated systems and digitized processes. Limited data and inefficient technology open shippers to a wide range of problems and challenges, including the following:
- Limited access to data points. Without real-time analysis, there is less data for making critical decisions. Less information means more opportunity for mistakes and missed opportunities. And unfortunately, it can be challenging to capture and make sense of third-party data, especially when it lacks a standard format.
- Lack of external data. Sometimes a third party source outside of the company needs to be accessed for data. Without an optimized network, it is much harder to acquire such data. While true, it’s also critical to realize that data for the sake of data does little good if a company doesn’t have the resources to commit to its analysis. With that in mind, it’s essential to have an outside data expert in your corner that can look for inconsistencies, automate more processes, and derive more actionable value.
- Outdated data. The only thing worse than not having access to data is making decisions based on outdated data. Limited data results in limited decision making, but insufficient, outdated data can affect your perception and guide you to make a worse decision.
- Overwhelmed by data. Just as bad as having not enough useful data is, being inundated with too much useless data results in feeling overwhelmed and becoming more stuck in the supply chain’s ruts.
- Limited resources. Old processes are often rife with wasted resources, time, workforce, and funding. Embracing new optimized options makes the supply chain much more efficient.
- Lack of understanding of insights’ value. Not knowing what to do with data once collected is a big problem for managers regardless of their vertical or transport mode. Without knowing where to begin, it becomes impossible to enable real transportation optimization.
Optimization Overcomes the Obstacles and Derives the Ability to Do More WIth Less
Higher shipping rates, lost customer revenue, wasted working hours, higher costs and fees, wasted revenue, low customer satisfaction, and lost opportunities are just some of the things poor optimization can cause. Without transportation optimization, those problems become the norm.
Using transportation optimizers, it’s easier to see where the low-hanging fruit lies. And using advanced shipping analytics tools, enterprise shippers can pin down the problems, isolate their causes, and force them into retreat. That includes issues in sourcing transportation capacity, freight settlement, and recordkeeping. The simple step builds on itself, adding more value as the supply chain becomes more efficient and reliable. And through the application of both throughput and finance supply chain KPIs, it’s possible to capture bigger spend reductions.
Therefore, cost reductions and streamlined management becomes the standard for success and ensures smooth business growth. But that’s only the beginning.
The Big Benefits of Technology in Optimized Freight Management
Embracing technology will help managers across the industry prepare for the future growth of the industry. Technology used for transportation optimization yields significant benefits, including:
- Faster decision-making is an excellent factor in expanding the network with more vendors, carriers, lanes, and other factors.
- Improvements across all key processes reduce the physical work of managing the back-office.
- Access to powerful and practical tools make managing exceptions easier.
- Smoother collaboration across the supply chain, including the returns process as well, improves sustainability.
- Mobile access and enhanced technology input inform analytics, enabling deep learning through proprietary algorithms.
- Streamlined collaboration with third parties, particularly those involved in load matching, final mile delivery, and parcel, result in more effective processes.
- Better customer service and feedback cycles derive insights from the full shipment lifecycle track and aggregate a better supply chain strategy through metrics-driven management.
Increase Transportation Optimization With the Right Freight Data Analytics Tools and Partnerships
By embracing modern innovations and making the most of transportation optimization processes, freight managers can position their organizations to benchmark, improve, and validate positive results. Of course, that all depends on having access to quality, experienced and reputable business intelligence providers like Intelligent Audit. Contact Intelligent Audit to get started with your risk-free consultation today.