Data holds immense value in modern supply chain management. The use of data gives shippers and logistics service providers (LSPs) insight into operational efficiency, productivity, risk management, and demand. Among wholesale distributors, logistics data lowers downtime through proactive management, reduces carrying costs, and lessens the hassle of dock and yard management. As reported in a webinar, hosted and published by MITS.com, distributors realize a 13:1 return on investment in data analytics. Supply chain leaders need to understand why wholesale distributors are increasingly using data, how analysis of data generates real results, and how to maximize the value of data to improve wholesale distributors’ desired outcomes.
Driving Forces Pushing Distributors to Use Logistics Data in New Ways
How Logistics Data Improves Outcomes
- New Fulfillment Models. Cross-docking, drop-shipping and even buy-online-pick-up in-store represents new ways to move freight, speeding fulfillment and generating more data.
- Supply Chain Collaboration. More information and collaboration with data helps everyone understand their duties and needs.
- Demand Forecasting. The benefits of demand forecasting stem from refined resource management, ranging from inventory to people to capacity.
How to Access and Apply Logistics Data
- Eliminate the data silos with cloud solutions.
- Give supply chain partners access to your systems.
- Encourage supply chain partners to use like systems.
- Ensure systems are user-friendly.
- Aggregate data with self-reporting systems and automated reports.
- Use analytics to comb through data, learning why, how and what must happen to attain success.
- Integrate newer technologies and systems via an API or EDI, depending on compatibility.
- Guarantee timeliness and accuracy of data through internet-enabled devices or other forms of machine-to-machine connectivity, including RFID tags, Bluetooth and GPS.
- Upgrade analytics that are no longer relevant or not pulling the data you want to analyze.
- Connect with more drivers and carriers, tapping the power of the Gig Economy.