Chat-GPT, self-driving vehicles and delivery drones are the headline-worthy faces of a data-driven supply chain. Yet for most of us, these innovations won't be rocking the boat in our day-to-day duties any time soon.
Although it seems data science has infiltrated every industry, in logistics, it seems to have only scratched the surface. This begs the question, how can data realistically transform and strengthen your supply chain?
1. Tracking Process
Just as a captain wouldn't set sail without a compass, a logistics manager shouldn't run their operations without objectives. Without them, you might be sailing blindly, unsure of your direction or progress.
Key Performance Indicators (KPIs) are like the GPS of logistics, guiding you towards success and helping you avoid inefficiency and/or disruption. Some of the most popular KPIs include:
2. Shipping Management
Historically, shipping lines have been notoriously secretive. But with the rise of reliable shipping data, the barriers to transparency are being broken down. We're no longer in the dark about how shippers stack up against their competitors. So, how are logisticians capitalising on this emerging data?
Real-time Tracking and Monitoring
With real-time visibility of supply chains, companies can optimise shipping routes and respond promptly to any unexpected issues. The latest iteration of shipping visibility takes it one step further, allowing customers to track their orders in real-time.
Carrier Competitor Analysis
Companies are collecting and analysing past data related to carriers' cost and performance, which includes factors such as packaging, location, discounts, seasonal rates, delays, and communication. Finally, armed with this data, businesses can negotiate better carrier rates that without compromising speed or service.
3. Inventory Management
In a perfect world, predicting the demand for goods would be straightforward. But we all know that's not the case. As the pandemic has shown, even the most accurate forecasts are no crystal ball into the future.
Fine-Grain Forecasting
Consumer preferences, economic conditions, seasonality, marketing and promotional activities, and product availability all influence consumer demand. Tracking more variables and their impact on a granular level is elevating how demand is forecasted.
Inventory optimisation
Distorted information throughout the supply chain can cause large inefficiencies in inventory. To avoid the bullwhip effect, predictive analytics is empowering logistics companies to optimise inventory levels, reducing stock outs and overstocking to improve warehouse efficiency [1].
IoT Integration
The integration of Internet of Things (IoT) devices, such as sensors and RFID tags, into warehouse operations, provide real-time data on inventory levels, equipment performance, and order fulfillment [2].
4. Supply Chain Strategy
A data-driven supply chain revolutionises the way businesses interact with their customers. More efficient supply chain strategies not only save time and money, but also boost customer satisfaction.
Route Optimisation
By harnessing the power of data, we're revolutionising shipping. We're using it to streamline routes, get your cargo to you faster, save you money, and even reduce our collective impact on the environment.
Customer Personalisation
With data-driven personalisation, businesses can provide an exceptional customer experience that sets them apart from the competition. By collecting and analysing customer data, companies can gain valuable insights into their needs, preferences, and behaviors.
5. Sustainability
In light of the logistics industry facing increased scrutiny to improve their environmental impact, data has become crucial to ensure compliance with new regulations [3]. Logistics workers are harnessing the power of sustainability data to cut down green premiums and pave the way for a greener and more efficient supply chain.
End to End Carbon Footprint Visibility
Surprisingly, a relatively short trucking leg can generate more emissions than a container's journey over thousands of kilometers at sea. By measuring each segment of your supply chain, you can strategically achieve the maximum impact on reducing emissions.
Optimising Resources
By analysing data on transportation routes, fuel consumption, and emissions, logistics companies can make informed decisions about how to reduce their environmental impact such as shipment, consolidation, slowsteaming and route optimisation.
Key takeaways
Bringing 10+ years of experience across international marketing, business administration, and strategic brand management, Explorate's media lead has directed corporate communications within competitive industrial and tech sectors to expertly navigate reputation across the digital supply chain landscape.
[1] Ohio University. (2022). How the Bullwhip Effect Impacts the Supply Chain. https://onlinemasters.ohio.edu/blog/how-the-bullwhip-effect-impacts-the-supply-chain/
[2] Biz Intellia. (2022). 6 Widespread Applications of IoT in Logistics Industry. https://www.biz4intellia.com/blog/6-widespread-applications-of-iot-in-logistics-industry/
[3] International Maritime Organization. (2022). Rules on ship carbon intensity and rating system enter into force. https://www.imo.org/en/MediaCentre/PressBriefings/pages/CII-and-EEXI-entry-into-force.aspx
Frequently Asked Questions
Explorate gives supply chain managers one real-time view across ever forwarder, lane and mode without replacing your current process, partners or systems.
