Perhaps more than most other industries shippers and logistics companies seem to be late to the table when it comes to implementing technology. I know some carriers who operated without a website well in to the 90's. This tardiness to implement that technology which everyone else has adopted may eventually lead to their economic demise. The ability to provide big data driven information and the ability to protect that data have become a critical requirement. Some companies are finding themselves unqualified to bid on contracts if they cannot provide the data and technology required by customers.
Another merging technological application is analytics. Many old school companies do not understand the competitive edge analytics can give them. As the amount of data increases analytical applications become the only effective way to retrieve relevant information regarding operational and personnel efficiencies and overall profitability. Every year companies go out of business because management does not have an accurate picture of profitability until the deficit is unmanageable. Successful shippers are leveraging information technology to help identify ways to more efficiently manage operations and mitigate risk to their supply chain. They do it by seeking the council of technology experts and learning about and applying new strategies. We are in the middle of a paradigm shift in manufacturing processes, transportation protocols and logistics management. It is critical to keep up.
Big Data. How to Most Effectively Use It.
Big data is just that. It is enormous in its volume. As we said, analytics will be a requirement to manage the sheer volume of information. But Big Data’s value doesn’t come from the collection of information. The real value of Big Data comes from your ability to use the information to identify opportunities to increase efficiencies in all segments of from purchasing to production to shipping and customer service. Purchasing decisions have a significant effect on profitability. Using historical data can help to identify the most efficient purchase quantities based upon conditions such as the time of year, past customer demand and pricing variations. Production level decisions can similarly be improved based upon the ability to interpret this same historical data. Shipping is perhaps the area where most improvement opportunities exist. All carriers have their preferred lanes. In many cases, in the spot quote market, identical shipments can have significant pricing differences based upon the day the product is shipped. The ability to compile, store and utilize this data in planning decisions can have profound affects on profitability and shipping protocols. Big data has transformed customer service. By using advanced analytics, companies can make better use of their customer and user experiences, leading to higher satisfaction and customer loyalty in the long term.
How to Get Started with Implementation.
Big data and analytics are on the agenda of every company for good reason. It’s essential; adapt or die. Together, these technologies promise to transform the way many companies do business. Implementation and utilization of these tools and techniques will help identify new opportunities and provide a competitive advantage. Many executives, however, remain unsure about how to proceed. They’re uncertain, and understandably so, that their organizations are prepared for the required changes, and a lot of companies have yet to fully exploit the data or analytics capabilities they currently possess. It is new ground for middle and upper management in most organizations. If you’re unsure how your company's' historical data can help identify economic and operational efficiency opportunities, contact one of our logistics professionals today www.Land-Link.com to schedule a no obligation review of your supply chain history. We will compile a management report of our findings based upon your specific history and make specific recommendations to increase overall supply chain efficiency and effectiveness. We look forward to an opportunity to increase your company's competitive edge.