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Saving on Shipping Costs: How Data Can Help

Investment in data technology is one of the most important advances in the past decade. For all the industries that will be improved with the use of technology, trucking is one that will be greatly affected by optimizing routes and enhancing fuel efficiency. Optimizing the transportation process relies on leveraging data, which can be used to identify efficient behavior and add to the bottom line.

The Importance of Data

In the world of shipping, there is no way for some companies to keep up with their demand and still meet shipping deadlines without the use of data and the insights it provides to make the best decisions. Increasing consumer demand has resulted in more pressure on the supply chain. In order to be able to adapt to these new demands, logistics managers need to be able to access data in real time and apply the information practically.

To drive value from data, systems need to be able to gather and categorize data efficiently. To be effective, data needs to be assessed in real-time. Analyzing data with the right tools becomes integral to making a business efficient and gaining a competitive edge. When data is used correctly, it can drive other benefits such as safety, efficiency, and supply chain transparency. Data is needed to respond to the changing needs of businesses for them to scale.

Improve Day-to-Day Activities

The daily tasks involved in shipping items can be overwhelming. Dispatchers, logistics planners, and other staff are all involved in getting goods from Point A to B. They rely on drivers to communicate issues, deliver goods on time, and submit the proper documentation. Tracking down drivers about missing paperwork and requesting updates on their load status can be time-consuming.

Automation can help resolve these issues and receive requests for quotes and translate them into fair offers by using financial and historical data. The data can be streamlined to improve the quote process. It can then be reviewed and amended as needed.

Supply Chain is the Key

The end goal of shipping is getting items where they need to be on time, the entire supply chain must be aligned and operating optimally. Businesses that have used data to analyze how to automate forecasting, replenishment and lead time are able to improve on-time delivery. The goal of using data is to make the supply chain more predictable and reliable. Real-time data enables supply chain managers to be flexible and make adjustments as needed.

Elevate Shipping Management Tools

Until recently, there was very little information about the shipping process, leaving companies and retailers guessing about the carrier rates. Without the use of data, shippers cannot predict the impact of shipping costs and the factors that affect them such as location, discounts, and seasonal rates. Being able to analyze the entire shipping process, including carrier negotiations and rates, leads to an optimized operation.

Cut Costs

The cost of shipping has only risen in recent years, but the proper application of data can help mitigate these costs. An estimated 30% of fuel costs is based on driver behavior so improvements in driver performance can cut spend. When telematics data is integrated with TMS, key transportation cost drivers can be assessed. KPI’s such as on-time delivery, idle time, speed, mileage, and fuel consumption can help identify areas that need performance improvement.

Is Your Company Using Data From a TMS?

Managing a fleet of vehicles without losing margin requires an understanding of costs. The data from video dashcams and GP trackers can find the most optimal routes and avoid the ones that will result in costly delays. A Transportation Management System (TMS) can provide historical data on past trips, operations, and scheduling.

However, when systems are separate, updates and not seamless and it can take a lot of work to adjust vehicle schedules. Companies that still rely on Excel and manual methods to keep track of information, making some data even more fragmented. Logistics operations that are located on a central location platform eliminates the need to cross-analyze insights because all of the necessary information is in a user-friendly format, enabling logistics planners to optimize routes to keep costs at bay.

Data Integration with Verizeal

Becoming a data-driven logistics company can benefit every aspect of your organization. The use of data is invaluable in boosting productivity, reducing costs, and increasing customer satisfaction. Logistics planners who integrate data with a TMS can streamline operations. Verizeal’s platform provides real-time and historical data to better inform your company’s decision makers on their supply chain and shipping processes.

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