As the economy becomes more globalized, the demand for transportation of goods will only grow. This growth has increased the need to optimize delivery processes. Data is now being used by companies to get insights into trends in the market. Those businesses that invest in analytics are able to use data to take advantage of opportunities in their market and be more resilient to market changes. Despite global shipping softness, there are still some subsectors that are growing, and data can help take advantage.
The Growth of Big Data
Big data looks for patterns in information that can help with insight and is stored in the cloud for easy accessibility. As data flows in continuously from various sources, artificial intelligence (AI) is used to detect patterns that show market trends, make predictions, and increase efficiency. Big data in the logistics industry gives invaluable insight as to how to best manage the market. However, it does not use the standard analytics programs, rather, advanced processing tools to be able to maximize the information that has been collected.
Ways to Use Big Data Effectively
Is your company using data effectively? Not all are. In fact, a surprising 99.5% of data that is collected is never analyzed, meaning that many businesses are missing opportunities to further understand their business. Companies that do invest in big data can use this information in the following four main ways:
- Finding niches through information about end users
- Optimizing shipping based on different methods of transportation
- Improving costs
- Managing transportation choices more effectively
The use of data can help a business grow and remain competitive in the market.
Tips on Using Big Data to Benefit Your Business
If your company is not already using the data it has collected, these tips will help get started:
Collect data that is granular. Most forecasts work off of data at the aggregate level, however, in order to be most successful, companies need to have an understanding of areas of growth and which routes are most optimal. This means digging deep into the data to find exactly what needs to be improved.
Be open to new categories and routes. Global supply and demand in constantly in flux and companies that need to ship products have to be able to adapt. Businesses should explore all possible routes, even those they have not considered before. Emerging markets present an opportunity to capitalize on increased trade. Whether for fleet management or shipping, data can optimize routes to incorporate weather, traffic, and other factors. Automatic identification system data is used in real time to be able to plan better routes.
Understand the Customer. Customers are important sources of data. Companies that are able to make strong customer relationships will have a better chance of understanding the future of their business, both through core shipping and additional value services. Use this data to enhance the customer experience.
Negotiate Carrier Contracts with the Use of Data. Data provides input for all decisions, but specific data is needed for long-term and short-term contracts. Long-term contracts should consider forecasts for the next one to three years for the duration and price of the contract. Companies should use models of industry demand and supply. Short-term contracts are affected by a more dynamic market and are more dependent on immediate needs. Advanced analytics can help companies develop insights that give them an edge over the competition when it comes to negotiating contracts.
Utilize Predictive Analysis. Predictive Analysis can be used in ecommerce and shipping data analytics. It involves tracking customer information from their contact details to their purchase history. This can help determine customer wait times and what they expect from the delivery process. Being able to identify trends in consumer behavior can impact scheduling and delivery time frames. For retailers, advanced data can show inventory levels and if some supplies are taking longer than others.
Employ Real-Time Tracking. Customers demand real-time information about their shipments. Sensors, barcodes, and RFID tags can be used to monitor and track shipments. Factors such as weather and traffic can finitely predict arrival times. A business that ships products cannot survive in today’s environment without being able to provide this information to their end users.
Verizeal and Big Data
Verizeal uses the power of data to be able to provide visibility for businesses with the use of IoT devices and sensors. This means automated alerts, accurate information on location, status, and delivery time for your business, which will allow you to make better decisions about the transportation of your goods. Keep your business on the competitive edge with use of big data.
