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Using data analytics can increase 3PL’s performance and make sure that they manage their people and our assets effectively to improve the service.
FREMONT, CA: The logistics industry is complex with sub-areas such as transportation, warehousing, inventory, material handling, packaging, and security that must come together for actionable insight. The ever-changing economy and the necessity of cost-effectiveness add to the complexity of the ecosystem. This, in addition to the huge scale of operations, makes it increasingly difficult for logistics service providers to gain visibility across the supply chain and ensure better customer service. But a data-driven approach is helping to make logistics activities intelligent, faster, and more efficient. Here is a look at how
3PLs are using data to add value to their customers.
• End-to-End Supply Chain Visibility
Because of the capabilities that 3PLs have to combine and store data in a consistent method from different systems, it can bring visibility across the supply chain. Not just visibility of what has already happened, but real-time visibility. That is a significant advantage for the customers. Big data is being used to streamline resource utilization, process quality, and performance and enhance decision-making speed and transparency.
• Greater Customer Service and Reduced Risks
Customer experience is enhanced by using big data to create an integrated view of customer interactions and operational performance indicators. This is allowing precise customer segmentation, meaning that service levels can be designed to specific customer groups. Big data can be used to reduce risk by identifying, evaluating, and notifying all potential disruptions on vital trade lanes, like growing port congestion or high flood risks.
• Improved Resource Planning
Generating reports required a lot of manual effort from operations, and the customer often received inconsistent data. Today, with a single click, 3PLs can share transparent data through cloud portals and enable access to it. Customers and the supply chain are becoming much more integrated and have the data to trust each other much more. That’s one of the biggest business values delivered by 3PLs’ using data analytics. Logistics companies can use their historical data to forecast their customers’ expected volumes, which helps them enhance their resource and capacity planning. This data can be provided to customers to aid them in better their planning processes in turn.