Automation and analytical processing are critical to all levels of management. Business intelligence in the logistics industry promotes transportation optimization and is on track to be among the biggest influencers in logistics and shipping management going forward. According to Supply & Demand Chain Executive, “analytical decision support is embedded within today’s supply chain planning, manufacturing and logistics solutions. Users gain insights based on real-time data rather than yesterday’s batch roll-ups. They can manage by exception, get automated recommendations and evaluate trade-offs before they enter transactions—whether they’re transferring inventory, releasing work orders or arranging shipments.” For those looking to get the most out of business intelligence in the logistics industry, here are some points shippers need to keep in mind for how intelligent decision making will drive success.
Why Companies Need Business Intelligence
Business intelligence in the logistics industry is essential for smooth operations, especially in such a pivotal and influential year as 2020 and an expected volatile start to 2021, given the distribution of the COVID-19 vaccine which is expected to cause major capacity shortages in the transportation network. Of course, the past year only hints at a few problems. Additional reasons shippers need to stay focused on intelligence and shipping data analytics due to the following:
- An inability to track, cleanse, analyze and act upon the mountain of data generated within the supply chain and how it inevitably results in changes to competitive strategies.
- Continuance of disruptions that result in strong market fluctuations, particularly the uncertainty regarding future trade regulations and global tariff policies.
- A growing consensus that shipping analytics tools are the best way to maintain a competitive advantage with major industry players, including Walmart, Amazon, Target and others.
Business Intelligence in the Logistics Industry Systems Creates More Value
The management team’s goal should be finding ways to do more with less, quickly secure capacity, make strategic decisions, and move to an intelligent supply chain. For many managers, the framework to achieve business intelligence in the logistics industry already exists. For those already measuring and acting on that data, the time to start is now. That’s because the coming year will inevitably be characterized by additional disruptions and potential network redesigns that have a goal to disruption-proof, as much as possible, the industry.
The Strong Benefits of Big Data Use With Business Intelligence in the Logistics Industry
Supply chain managers need to find ways to apply the data rather than merely letting it remain a passive influence. That simply means that data for the sake of data lacks value. And the key is knowing how to demonstrate an understanding of carrier needs, communicate how the chain can help meet those needs, and secure better rates for everyone. Being practical and taking actionable steps are solutions that will make use of new data solutions. Other key benefits of applied intelligent solutions include:
- Faster replenishment.
- Increased visibility.
- Ability to manage by exception through informed decision-making.
- Proactive intervention through automated corrections, such as validating and fixing errors in addresses.
- Better customer satisfaction rates that derive from more on-time deliveries and fewer losses.
- Reduced transportation costs through practical management of carrier contracts, increased network density, and faster load execution.
- More potent mix of freight resources through all-mode, including parcel, insights to add value.
Of course, that’s not a comprehensive list. And the benefits can continue to grow through continuous process improvement.
Put the Insightful Power of Business Intelligence to Work in Your Company
All the world’s data cannot improve the supply chain if it is not deliberately and logically applied to the network. To make the most of business intelligence in the logistics industry and ensure the network is ready for 2021, request a consultation with Intelligent Audit today.