How Does a Data Warehouse Work?

Data Warehouse

Modern supply chains require an efficient flow of data at all times. From monitoring KPIs to staying on top of inventory, successful supply chain managers collect all sorts of data daily. It is this data that helps companies make tailored decisions to improve their daily operations.   

But until it gets reviewed it needs to be stored in a centralized location. And this is where data warehousing platforms come in handy!

Data warehousing is a commonly used tool in many industries. However, it is, more recently gaining popularity in the world of logistics. While there is good information online about data warehousing solutions, some of it is misleading and can cause confusion for shippers considering this as a way to improve their supply chain operations.

In this blog post, we’re going to talk about data warehousing and how it can be used to help supply chain businesses improve service, review data, save money, and streamline logistics operations.


What is a Data Warehouse?

A data warehouse is a piece of software that acts as a database of information. From this central repository, businesses can analyze data to help them make better-informed decisions or target pain points in their business. This type of platform acts as a secure, easy-to-access storage unit for all of your analytical business data. As a bonus, and like most other software solutions, the data warehouse can be stored in the cloud!

Essentially, a data warehouse platform allows shippers to store and review aggregated data in an effort to improve operations and maintain competitiveness. 


How Does a Data Warehouse Work?

A data warehouse works similarly to a modern distribution hub.

When a distribution center receives and stores products, materials, and supplies in a clean, safe, and organized environment. A data warehouse does the same thing except it is storing data, not materials. It collects data and stores it across several organized, individual files. 

A data warehouse receives data from relational databases, transactional systems, and other sources. Data in a data warehouse is accessed by data scientists through SQL clients, business intelligence (BI) tools, and other applications.

Here are some of the biggest benefits that a data warehouse offers to supply chain partners:


Consolidation and Easy Access of Data Storage

Data warehousing platforms built by third-party logistics companies (3PLs) provide a safe and reliable place to store vital files such as analytical data and financial reports. This platform can also be organized in a way that specifically fits your user preferences, business type, and more.


Data Consistency, Quality, and Accuracy

Data warehouses give shippers peace of mind.

And yes, there are still companies who keep and analyze physical datasheets. Doing it manually leaves a massive window open for error and lack of accuracy.


Improves Software Performance

When a distribution center is properly organized, the process of picking, packaging, shipping, and delivering products to customers much easier. The purpose of modern data warehousing solutions is to accomplish this kind of increased efficiency on a digital front, allowing businesses to use their software solutions more effectively.


Better Decision Making

When you have better ways to access and review data, the result is that you will have more accurate information, and with more accurate information, you’ll be able to make better decisions.


Final Thoughts

With data warehousing platforms, businesses improve data storage, as well as increase overall efficiency also gives them a competitive advantage. If you work in the supply chain, then investing in a data warehouse is definitely a must. 

Proactive 3PLs like Redwood Logistics are at the forefront of data warehousing solutions. As a matter of fact, our team of experts is able to customize solutions to match your business type, size, volume, and scope.

If you have questions about data warehousing or need us to help you get one set up, reach out to us today!