To no great surprise, predictive analytics have become a staple of nearly every industry. The concept of using data to make better decisions holds water across several business types. However, predictive analytics platforms feature tools and designs specifically for logistics. Advanced analytics works by analyzing real-time data, predicting future situations, and prescribing complex, money-saving decisions on the spot. Fully leveraging the spectrum of predictive analytics is a must for current and future successes within the logistics industry. However, understanding how to quickly and frequently to act on insights from advanced analytics is becoming just as crucial. We will introduce you to the power that predictive analytics packs for the logistics industry.
Let’s define predictive analytics:
Predictive Analytics uses forecasts and statistical models to judge and provide recommendations about what could happen.
We all understand that there are two sides to every story. But in the end, input from your consumer holds a lot of value. Predictive analytics platforms can create and review customer profiles, gather more insights about that customer, including their shopping trends, demographic data, and additional KPI’s that allow you to fine-tune your marketing, sales, and supply chain operations to suit their needs.
Improving the Last Mile
Shippers spend most of their time and resources trying to find creative ways of improving the delivery experience for their customers. Predictive analytics allows shippers to discover inefficient operations, procedures, or performance; review the data, and recommend a series of changes.
This type of real-world information gathering is essential to improving last-mile logistics. Collecting data from GPS systems on delivery vehicles, instant information from mobile devices, and input from the customer directly and analyze all this information and predict future performance.
E-commerce generates a vast volume of supply chain data, which can be used to create near-real-time forecasts and accommodate sudden changes in demand. This information can leverage existing and real-time data to identify future trends, as well. In addition, order fulfillment can impact so many departments across your company — not only your warehouse but also sales and marketing, customer service, finance, and other teams. Any business intelligence you can use to streamline and improve those processes can save your business a lot of money.
Increased On-Road Efficiency
One of the most critical areas for shippers to focus on is on-road efficiency. Predictive analytics allows shippers and delivery companies to review their on-road performance with real-time visibility. It will enable you to review this data in multiple, customized reporting functions, and make changes along the way.