Every day, logistics businesses deal with gigabytes of data that tell them anything from how many packages were delivered to how much postage was used. And it can be easy to get inundated by the influx and lose sight of the big picture. But by keeping track of critical metrics and analyzing them in a way that makes sense, you can see where your business is headed and make intelligent decisions about how to get there.
Fortunately, with Business Intelligence (BI), organizations can immediately translate data into a language you and your staff can understand. And with this information, you can make decisions that will help you run your business more efficiently – a hallmark of a good logistics business.
So, how can BI help your logistics business? Here are some ways:
Fleet Management
Trucks, trains, planes, and other vehicles are the lifeblood of logistics businesses. The problem is that managing all of these assets can be expensive, time-consuming, and confusing.
Real-time shipment tracking
With a BI solution implemented in your transportation management solution, however, you can track every shipment in real time and get the information you need to optimize your fleet. This will help ensure that your drivers are using their time wisely – like ensuring they use the most efficient route.
Hub establishment
The comprehensive data procurement and presentation of BI solutions should also help you decide on the best locations to establish hubs and distribution centers, which can help you decrease your shipping costs. Having this information at the ready can help you scale at a rate that’s not only cost-effective but also sustainable.
Keep track of driver behavior
With the data collection, interpretation, and visualization of BI; you’ll also be able to better understand how your trucks are being utilized, helping you identify difficult-to-spot driver behavior such as driving too fast, idling too long, and even potentially fraudulent activity.
Asset protection
it’s also important to note that many BI implementations in the transportation management sector include modules that help companies improve the safety of their operations. Typically, this includes providing dispatchers with information about weather conditions, accident reports, and other factors that may affect vehicle performance.
Improve customer experience
BI can also benefit customer experience on multiple levels. First and foremost, faster deliveries mean happy customers – and happy customers are more likely to return. Secondly, BI can help transportation companies provide better customer service by allowing them to monitor the status of their shipments in real-time, which can help ease the stress of a customer waiting for an important delivery.
In an increasingly competitive marketplace, logistics companies that invest in BI can gain the edge they need to succeed.
Inventory Management
Complete visibility into all relevant data is key to managing inventory in any supply chain. In the past, companies had to manually check their inventory levels and order new items when they ran out. This process could take days or weeks, depending on how many warehouses were involved in the supply chain.
Manual stock-taking can also introduce additional stress to your employees, as maintaining accurate records takes time and attention. In some cases, it can lead to expensive mistakes. For instance, managing an inventory of high-value items such as pharmaceuticals or electronics could be disastrous if your stock is low and you end up missing a shipment.
Today’s supply chain management systems, supported by Business Intelligence solutions, provide real-time data about inventory levels and insights allowing businesses to decide what to stock, when to order more, and how much to order. The ability to track and manage inventory levels in real-time has been a game changer for businesses that rely on it.
For perishable goods, pharmaceuticals, and other sensitive products, BI can mean the difference between a thriving business and one that goes under. This is because a simple event such as a sudden temperature drop can lead to a supply chain disruption, resulting in a loss of revenue and even bankruptcy.
Customer Analytics
Knowing your customers can help you forecast demand, create better products and services, and improve customer satisfaction.
Business Intelligence solutions allow you to track customer data – from online purchases to customer surveys and social media interactions. This data helps you predict which customers are likely to be the most profitable, which services you’ll likely have to scale, and what changes need to be made to improve customer satisfaction.
It can also help you forecast where their demand is headed, which can help you adjust your supply chain accordingly. With this information, your logistics business will be able to make better decisions about where to invest their time and resources.
Backed by BI, customer analytics tools can also help you identify opportunities for upselling, cross-selling, and other forms of value-added service. Personalized marketing through email, social media, and other platforms, for example, is an excellent way to use BI insights to increase customer loyalty and improve the bottom line.
By using BI tools to identify your most valuable customers, you can target these individuals with special offers, discounts, and other incentives. This will not only make them happy, but it also helps you build stronger relationships that can lead to customer loyalty.
Parting Thoughts
Business Intelligence is a system of tools, technologies, and processes that can be used to gather, analyze, and interpret data. And these tools can be quite powerful when deployed correctly in the logistics business in many different ways, such as:
1. Help your fleet perform optimally.
2. Lend a helping hand to your inventory management team to ensure accuracy and speed in stock-taking, ordering, and updating.
3. Improve customer relationships by giving them the information they need to make informed decisions about their business.
By understanding and leveraging the power of business intelligence, you can improve your logistics business’ overall efficiency, make better decisions, and, ultimately, boost your bottom line.
So, if you’re ready to take advantage of the benefits BI can offer your logistics business, get in touch with us here at Cherry Business Intelligence. We’ll be happy to help you out.
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