Data holds great value within supply chain management, and the amount of data grows exponentially through everyday operations. Moreover, most companies still rely on outdated metrics and KPIs, using outdated data. However, The application of real-time freight data opens the door to a better understanding of transportation management and insights into ways to unlock added value.
The Challenges of Maintaining Competitive Advantage With Outdated Information
The costs of using the wrong data are significantly higher than not using data at all in supply chain management. Depending on the industry, maintaining a competitive advantage is not the only issue. For example, in the health industry, relying on outdated supply chain process data can literally cost lives, as well as push patients to other facilities. As explained by Lisa Zerten of Becker’s Hospital Review, more than half of all health supply chain administrators feel manual inventory management leads to delays in providing care, less chance of treatment success, and even additional troubles in finding expired or recalled products.
Real-Time Freight Data Enables Intervention and Proactive Management
The risks of outdated freight data are the Achilles’ heel of modern, efficient, and successful supply chain management. The application of real-time freight data can boost competitive advantage. Instead of relying on what was likely to happen, shippers and LSPs apply advanced analytics to understand what was going to happen, what might happen, what should happen, and what else can be accomplished to achieve the best possible outcome. It is a continuous cycle of improvement. Clearly, access to real-time data enables timely intervention when things go wrong and helps supply chain leaders proactively handle such issues.
How to Apply Real-Time Freight Data to Increase Value
- Continuously optimize the use of multimodal transportation.
- Use real-time big data analytics to understand short-term impacts on freight rates.
- Integrate real-time data alerts to increase transparency to customers.
- Eliminate data silos by integrating supply chain systems through a connected, web-based platform.
- Use sensors to collect and share data throughout the supply chain.
- Visualize data through graphics to provide a better view of the supply chain.
- Track supply chain analytics metrics to understand logistics performance.