Our industry is solidly in the realm of "Big Data". Big data is like any other data except there are massive amounts of it available from which your transportation providers estimate your overall value as a customer. Data analytics and predictive analysis have become the leading indicators of a company's future business levels. If your organization is not utilizing these tools to predict future needs you may be leaving leveraging power at the bargaining table.
Data Analytics And Predictive Analysis
Data Analytics is not overly complicated. It is the science of interpreting historical data to predict some future utilization. This can be applied to expected manufacturing level, raw materials needs, inventory, and shipping. The application of this data is known as predictive analysis. Predicting the future needs of a company based on historical data coupled with expected future analytics such as increased sales volume or raw materials expense. The critical components of this science are the accuracy of the initial data input and the accurate category of data. Garbage in will give you garbage out and unnecessary data will compromise the utility of your output. So if you want to predict future operating costs be sure to include only financially relevant data. If you want more of a
CRM analysis, be sure to input customer specific data. Be certain of what data you want at the end before you begin.
Maximizing Your Profile Data
Other people have your data as well and are utilizing it to their full advantage. Your vendors and suppliers all have your historical data. Be assured they are using data analytics and predictive analysis to maximize their position every year. Your organization needs to be armed with a similar ordinance to leverage your position. For our purposes, we'll concentrate on your carrier profile data. The volume of data available here can be daunting, especially if you imagine collecting it all in real time. That’s why your first step should be figuring out what question you want to answer. Do you want to understand how winter weather affected your holiday shipping last year? Do you think you can make transit more efficient? Further, big data draws links between all aspects of your supply chain from your supplier to your inventory on hand, to your warehouses to your customers. This information can remind you when it’s time to order more replacement inventory because your stock is running low. It can reveal not only which of your vendors missed shipments, but also which manufacturers’ products got the best customer reviews.
A data analyst looks at information with a totally different perspective than a supply chain manager. Reviewing numbers or other types of information if you’re working with big data, can reveal inefficiencies you’d never noticed. It can identify inefficiencies in routings and contractual agreements that may be renegotiated. The million dollar question is how are you going to get this done within your organization on a timely basis. Clearly, it would take years and the establishment of Data Analytic department to compile and manage this data in house. The rate at which our industry has adopted data analytics simply won't allow you that much time. Not initially anyway and it may be cost prohibitive in the long term. The obvious answer is to outsource your data analytics. As far as your carrier profile is concerned Land Link Traffic Systems has been utilizing data analytics for years. Long ago the founder of Land-Link Traffic Systems Inc. stressed the following. “What does not get measured, does not get fixed”. It would be difficult if not impossible for any rational person to repudiate this thought-provoking statement and important underlying principle of business. Yet, many companies to do just that. Most companies, in fact, do not have the proper measurements and KPIs in place necessary to drive intelligent business decisions and to serve as support to the policies that are relied upon to drive day to day business activities. Visit us today for specific information on our data analytics approach.
Land Link Traffic Systems