Uses of big data in logistics

It’s clear that almost every industry uses Big Data to optimize processes. Yet it leads the company directly to increased profits. The popularity of big data is also growing in the logistics industry. More and more logistics companies recognize its importance and advantages. The concept of big data plays a central role in warehouse management or supply chain management. In what other areas is big data used?

6 uses of big data in logistics

We present six excellent examples showing the use of big data in logistics.

TRANSPORTATION

Tracking the delivery of goods and supplies is one of the leading benefits of big data. With big data, companies can track the delivery process from start to finish. For various reasons (traffic, weather conditions, difficulties in finding the address, etc.), the courier may not deliver the package on time. But, with sensors and GPS devices, it’s possible to track the delivery process in real time. Customers can check the delivery status on their smartphones. Companies also know where and how far the transport vehicle is.

ROUTE OPTIMIZATION

One of the biggest headaches in logistics is the optimization of the route. Even the smallest error in route planning can have a negative impact on the company’s financial results. However, with the help of big data, this risk can be mitigated. Using big data, you’ll know when it’s time to hit the road. Analytics tools use the following data:

• Traffic situations
• Weather conditions
• Shipment data
• Delivery sequences

By analyzing these factors, the tool determines the most optimal time to set off. What’s more, you can determine the shortest route and save, for example, funds spent on fuel.

WAREHOUSE MANAGEMENT

Big data technology helps the company maintain stocks in warehouses. Today, smart warehouses are doing much better than traditional ones. They affect and improve not only timeliness but also efficiency. Big data tools monitor and track on-hand inventory. In this way, companies receive real-time updates on stock status. Out-of-stock can result in the loss of customers. With big data technology, companies can manage the warehouse more efficiently.

IMPROVED CUSTOMER SERVICE

By using big data technology, companies can improve customer service. Customer opinions about products are key information for every entrepreneur. They put them in surveys, websites, or social networks. The data analytics tools collect and analyze this data. In this way, companies get to know their customers and can tailor products to their needs. As we mentioned before, big data affects the optimization of routes. Thus, customers receive goods on time, without delays. All this has a positive impact on customer service.

DELIVERY OF PERISHABLE GOODS

Big data also has a huge impact on the delivery of perishable goods. The residence time of perishable products in the supply chain must be kept to a minimum. Incorrect conditions during transport or improperly prepared cars may cause a decrease in the quality of transported products. That is why there are temperature sensors in delivery trucks. Their role is to monitor the quality of products constantly. Sensors collect data that the company and the driver have access to.

PLANNING OF MAINTENANCE ACTIVITIES

Data analysis makes it easier to control the efficiency and operation of warehouse equipment and robots. It is possible to schedule maintenance inspections in advance. And their regularity will prevent the occurrence of failures stopping the operation of the warehouse.

Conclusion

The competitiveness of companies doesn’t depend only on factors affecting their productivity. The effectiveness of predicting trends and changes taking place in the market is becoming more and more important. Hence, big data in logistics becomes an issue that should be implemented in every enterprise that wants to follow logistics 4.0.

Addepto can help you digitize your warehouse and take advantage of the richness of big data analytics in logistics. To learn more, see Addepto Big Data Consulting services.