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A major factor contributing to the yearly and growing success of a company like Amazon is its unique ability to consistently innovate and improve shipping strategies.
In fact, Amazon is constantly redefining what customers expect from shipping providers and are trying to keep up with this consistent flow of innovation. That's the companies secret sauce if it wasn't already apparent; innovation. And many companies try to emulate this same model in an attempt at "Amazonation'.
And the companies' most recent developments have been in the field of predictive analytics. Through the use of this new form of data analysis, Amazon has been able to optimize its shipping process right down to the most minute details.
Predictive analytics refers to a complex series of processes with which companies can make accurate forecasts about certain aspects of their shipping or logistics operations.
More specifically, predictive analytics reads algorithms that are based on past and present data to make calculated future predictions. By incorporating external signals and other useful sources of information, companies can make these predictive analytics more robust and accurate. The whole method is intended to create a framework companies use that can identify trends and patterns within a set of data in order to make proactive changes.
But predictive analytics software is not a one-size-fits-all ordeal. Actually, organizations use a combination of methodologies in their predictive analytics. With the addition of advanced tools and automated technologies, these analytical processes can become more accurate and efficient. Once patterns in the data are identified, predictive analytics will be used to help determine the probability of certain events. With an effective application of these analyses, companies can eliminate unnecessary costs and mistakes that might occur within their operations.
Organizations have been able to run successful supply chains for decades without any form of predictive analytics. These new methodologies provide companies with extra information about patterns that could help forecast events in the future. Supply chains that operate without these predictive methods can still implement effective analytics that focus on changing current issues instead of potential problems in the future.
It’s clear that shipping and logistics companies can operate and even achieve a modicum of success without implementing predictive analytics. However, there are numerous improvements that can be made to a supply chain through the use of these forecasting abilities.
Shipping analytics software can gather data involving the seasonal habits of customers to make predictions about future behaviors.
Market insights showing the ebbs and flows of the past and present can help organizations anticipate supply and demand changes in the future. These patterns can help a company attend to a growing demand or market change before it occurs.
With so many pieces of equipment and technology, maintenance delays are inevitable in most supply chains. Predictive analytics can forecast needed repairs and give companies ample time to organize this maintenance efficiently.
Predictive analytics can provide organizations with forecasts about buying behavior. This information can be relayed to suppliers to increase their preparation during times of increased production.
The biggest advantage of shipping analytics software is the flexibility of this strategy. With the right information, analytic methodologies, external insights, and technology, companies can use predictive analytics in nearly all aspects of their organization. Businesses should start by asking the most pertinent questions facing their operations. Predictive analytics can then be used to build a framework that can help to answer these questions.
Although Amazon is leveraging these predictive analytics in several ways, there are a few that have been particularly beneficial for the e-commerce giant. Through the enhancement of predictive analytics in its supply chain, Amazon has been able to anticipate shipping and stocking needs by the study of real-time information. This predictive data makes for a smooth experience for both suppliers and shoppers. Amazon has even started to send some shipments before an order has been made. These changes are helping to set Amazon apart from the rest of the competition.
Whether an organization is interested in cutting frivolous expenses or avoiding potential mistakes, shipping analytics software provides a viable method for accomplishing many different goals. While the normal analysis of data can provide an organization with valuable information about what has happened, there isn’t any thought given to future events.
Reach out to the Redwood Logistics team to learn more about how we can jumpstart your supply chain and reporting analytics today!