The powerful Analytics tool is rapidly revolutionizing the transportation and logistics industry. Omitting the likelihood of misplaced and misdelivered freights, reducing customer dissatisfaction, and optimizing the revenue are some of the major aims achieved by the implementation of Analytics into logistics management.
Let’s explore some of the benefits that logistics companies obtain by the application of Analytics into their businesses.
Reaching to Meaningful Insights
The data warehouses are the mines for meaningful insights. Using Analytics, these data can be analyzed and the obtained insights could be applied to the businesses for enhanced productivities.
Analytics can mark out the customers who give the highest revenue, or are the regular and the top ones. This can simplify the companies’ task of paying more attention and care to such customers who ensure regular or larger revenue to the company.
Also, Analytics can help to predict the customer churn rate, along with identifying the underlying root causes behind the terminations. The reasons behind a high customer churn rate might be customer dissatisfaction, which can be due to the reasons like careless handling of items causing heavy damages, lost packages, wrong delivery of packages, etc. Analytics can help in digging out all the reasons, and also can assist in ensuring that these faults are removed from the management.
Order Processing Optimization
The accurate delivery, fleet management, and optimized short-term routes have enabled the logistics companies to process orders at a very rapid rate. The rapid delivery management allows the companies to free up rooms for accepting newer orders, and also the staff and resources could be freed up to attend latest orders.
Due to Analytics, the logistics companies’ order processing capabilities are enhanced, which further increases the accuracy and reduces the time for the deliveries. This way, the companies could process a large number of orders with better management, and so, the companies’ overall revenue increases, and at the same time, the time required for processing the orders decreases.
Analytics Enabled Routes
Transportation companies can utilize Analytics to optimize the profit obtained by selecting the best routes. Tracking out the routes based on recipient status, crowd network, etc., can be achieved using Analytics. Predicting the routes which are high yielding can help reduce the overall costs from the company end, and at the same time, ensures better and timed delivery of the items.
The crowded and jerky roads could grave the commodity damages creating greater customer dissatisfaction and increased churn rate. Therefore, using GPS data, weather data, etc., Analytics can mark out the optimized route for the fleet. In short, the Analytics embedded routes cover all aspects of profit increase, loss minimization, damage prevention, and much more.
Predictive Analytics Forecasts
Yet another fascinating Analytics application in the logistics domain is the Predictive Analytics’ accurate forecasts. This process is based on actual data and statistics, and not on mere assumptions and theories, and so are expected to be of very high accuracy.
Predictive Analytics can be used to predict the peak hours, which enables the companies to prepare for the future heavy demand and busy hours at a very earlier duration so that no mismanagement occurs due to delayed planning and haste.