Whether you're receiving updates on inbound materials, managing inventory control levels, or trying to gauge your customer needs, the more data, the better.
But what if that data allowed you to see into the future? Believe it or not, this has become a reality with predictive analytics.
Distributors, retailers, manufacturers, and others who depend on the efficient movement of product throughout the supply chain are beginning to discover the game-changing benefits that predictive analytics offers.
Utilizing advanced software, advanced mathematical algorithms, and cloud-based platforms, shippers who integrate this new technology into their daily business operations maintain a competitive advantage over those who do not.
So, just what exactly is predictive analytics?
In this article, we will introduce you to this new data-driven logistics platform and that allows shippers to stay ahead of the game and improve the efficiency of their complete business operations.
What is Predictive Analytics?
We all understand the benefit of being proactive. This is essentially what predictive analytics offers.
This relatively new software combines historical data with advanced algorithms and other proprietary software solutions to allow shippers to anticipate, reduce mistakes, adjust operations, and stay ahead of the game. By using predictive analytics, logistics managers can analyze important trends in their shipping operations..
Here is a real-world situation that everybody in the supply chain can relate to...
Let's assume that you are shipping a pallet to a customer across the country. The customer expects that shipment to arrive at their door in two weeks. Any smart business understands how devastating overpromising and under delivering can be. Before committing to expected delivery times, a shipper using predictive analytics can run simulation models based on previous, similar shipments.
Once the simulation has completed, the shipper will have an accurate estimate for those unforeseen events, thereby providing a more realistic expectation for their customer. At the heart, this is what predictive analytics does. It collects data, analyzes the information, and provides supply chain partners with accurate estimations.
What are the Benefits of Using Predictive Analytics in Logistics?
By integrating predictive analytics into your supply chain operations, there are several benefits that can be achieved including:
Reducing Last Mile Inefficiencies
It is a fact that unexpected situations in the shipping process most often occur within the last mile. Predictive analytics discovers these inefficiencies in the last mile of supply chain operations, revues the data, discovers the root source, and allows the shipper to make changes.
Improve Customer Insights
Predictive analytics also arms a shipper with updated information from their customers. It can review individual customer profiles, group them together in demographic information. Furthermore, it can be configured virtually any way to provide you with insights that help you make shipping changes up to the last second. By gaining this valuable information, you can make more intelligent business decisions ahead of time, every time.
Improve Route Optimization
This revolutionary software can also be used to improve the optimization of each delivery route.
Of course, there are entire route optimization software platforms built solely for the purpose of route optimization. However, those are standalone programs that serve just that one purpose. And that is not to mention that the data also being aggregated in a much different way. Predictive analytics, on the other hand, provides an entirely new set of data with which you can work. The data it gives you isn't just real-time road issues and such. This software gathers data based on trends, giving you a foresight that route optimization does not provide.
The best way to determine whether predictive analytics software is good for your company is to consult with a professional 3PL. Thanks to our recent acquisition by Redwood Logistics – our combined efforts offers us the flexibility to expand our services – which now includes integration of several shipping management software solutions for multiple industries.
Reach out to us today and let us show you how you can predict the future!