Big Data and the Logistics Industry

Big Data and the Logistics Industry

Big Data, this term is the new obsession of organizations across the globe.

The term refers to sets of data that are so huge or complex that traditional software tools are inadequate to capture, curate, manage, and process them. Big Data Analytics is an analytical technique that enables businesses to predict the likelihood of an event and take timely business decisions.

The logistics industry is complex with critical sub-areas such as transportation, inventory, warehousing, material handling, packaging and security that need to come together for actionable insight. The huge scale of operations makes it increasingly difficult for the Logistics Service Providers to gain visibility across the supply chain and ensure efficient customer service. Following is the analysis of how Big Data is changing the logistics industry globally and in India. 

Increased Efficiency: 
Powerful data-processing and analysis capabilities increase the efficiency of distribution, logistics, and production networks. Big Data Analytics enables companies to share data with partners across the supply chain that results in the development of new services, improved demand forecasting accuracy and discovery of new demand patterns. For instance, gaining information from unstructured customer data can generate useful insights on product placement, pricing strategies, optimization strategies, layout optimization, operational risk management, and improved product/service delivery.

Real-Time Analytics: With Big Data Analytics, the Logistic and Supply Chain companies have an end to end visibility for acting rapidly on prospective loss of revenues and profits that could occur at various points in the chain. It increases asset uptime and expands throughput, enables preventive maintenance of assets and resource optimization along with conducting near real-time supply planning using dynamic data feeds from production sensors and the Internet of Things. This clear visibility ensures better operational planning resulting in enhanced service and increased efficiency for their customers.

Data-Driven: Logistic industry rely on enormous data to make key decisions. Business Data Analytics provides granular insight. Big Data Analytics highlights the importance of data in terms of its volume (referring to the amount of data), velocity (referring to frequency or speed by which data is generated and delivered), veracity (referring to data quality) and value (referring to the benefits from the analysis and use of big data). Predictive analysis helps to hire and retain talent, forecast staffing needs and improve employee satisfaction. As there seems to be exponential growth in the Logistic sector verticals, organizations are abandoning legacy systems and embracing analytics for better transparency.

Network Optimization Model: With the presence of more variables and more scenarios than ever before, organizations can integrate their analyses with many other interconnected business systems. Analytics on warehouse layout, product inventory and demand can help optimize operations within the warehouse also enabling alerts on depleted inventory or potential roadblocks. As the number of warehouses gets smaller, the remaining warehouses grow bigger and more efficient. By pooling customer demand across a smaller network of bigger warehouses, the company can decrease the variability of demand and can, therefore, hold lower levels of inventory.

Big Data Analytics helps companies solve much more intricate optimization problems than in the past. Usage of big data and advanced analytics to simplify distribution networks also helps logistic companies accrue savings that range from 10 to 20 percent of freight and warehousing costs, in addition to large savings in inventories. This technology has also shortened order-to-delivery cycle times and improved cost to serve.

Share this article

Leave your comments

Post comment as a guest

terms and condition.
  • Marco Eduardo

    The potential for Big Data in the logistics industry is endless

  • Frederic Torra

    Big data in Logistics goes way beyond the buzz words and offers real-world use cases. It reveals what’s happening now with big data, and what’s likely to happen in the future.

  • Yann G

    This presents an exciting and important role for sophisticated data analytics

  • Max Walter

    The solutions and possibilities showcased in your analysis demonstrates how organisations can exploit relatively untapped data assets once they adopt a shift of mindset and apply the right techniques.

  • Fred Bossche

    When companies adopt Big Data as part of their business strategy, the first question to surface is usually what type of value will it drive?

  • Ali Malik

    There are growing numbers of compelling applications in the logistics industry

  • Christopher Elina

    The ability to correctly predict demand has become a key factor for profitable business.

  • Jordan Stevie

    Many companies are learning to turn large-scale quantities of data into competitive advantage. Big Data will become a disruptive trend in the logistics industry.

  • Michelle Naly

    the optimal utilisation of resources is a key competitive advantage for logistics providers because excess capacities lower profitability, while capacity shortages impact service quality and put customer satisfaction at risk.

  • Alexandre Pasquier

    Big Data techniques improve the reliability of planning and the level of detail achieved, enabling logistics providers to perfectly match demand and available resources

  • Yannick Djedoui

    The aspect of big data analytics that currently attracts the most attention is acquisition of customer insight.

Share this article

Fatima Z

Society Guru

Fatima is crafting the art of communication with written words. With a post-graduate degree in marketing from the University of Mumbai, she can sell really well. But there is something she can do even better, write. The very existence of humanity is based on communication. She believes that words are the tool to convey ideas, creativity, thoughts and "whatnots'. "If you can convey, you can convince", as simple as that.

Cookies user prefences
We use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.
Accept all
Decline all
Read more
Tools used to analyze the data to measure the effectiveness of a website and to understand how it works.
Google Analytics