Data-Driven Decision Making in Logistics: Advantages and Best Practices

  • Jan 19, 2024
  • 5 Min Read

o Customer experience with their order fulfillment can strengthen relationship
o Globally, customers enjoy on-time delivery without any hassles
o Smooth last-mile delivery options enrich customer experience
o Smart cost-cutting in logistics is good for the growth of eCommerce
o DDDM improves supply chain management and makes logistics more robust

Data-driven decision making is achieved when facts, insights as well as metrics are aligned and the market research wing of a business can draw a conclusion by analyzing and evaluating the information. The data corroborated are used for making business defining decisions to better manage and get maximum returns from eCommerce inventory. It plays a crucial role in the management of multi-modal logistics and transportation by providing critical information useful in arriving at a profitable combination of road, rail, water, and air for successful delivery of packages from start to finish.

Data-driven Decision Making Make Logistics and Transportation Resilient

Advantage of launching eCommerce business with an integrated supply chain operations is, information is available in real-time through a single window. This helps in adopting best practices to scale business and take it to the next level. With customers being spoilt for choices by online vendors, they have got into a transient mode, wherein, customers are only loyal till the time there is comfort in shopping from multiple platforms. In addition, they look for sites which has no extra cost delivery options. This article is an approach to understand the benefits of data made available through syncing various operations of supply chain in improving logistics and transportation.

1. Informed Decision: Data-driven approach implies, there are relevant and verified facts available, that can be leveraged to transform business, make it more resilient and take it to the next level. Informed and logical conclusions are drawn by analyzing real-time situations rather than those based on hypothetical readings where chances of misfire were high. For example, if there is proper coordination and enough information available about improving location-wise movement of goods, then logistics and transportation can be better planned and cost can be controlled.

2. Instrumental in Key Strategy Planning: AI-based technology enables automated comparison and evaluation of data. This collection, extraction, formatting and finally analyzing of insights in real-time are instrumental in key strategy planning as they are all focussed on identifying strengths and weaknesses of logistics.

The analytical tools can compare rates, cost involved, available routes, carriers and how to involve 3PLs for maximizing resources in strategic planning of transportation. This efficiency in logistics and sharing of status with customers builds their trust in the eCommerce business.

3. No Delayed Response: Automation provides some crucial insights in real time and it can be shared across the board at the same time. This instant sharing of information empowers quick response to an opportunity rather than a delayed process. Today, opportunity missed is business gone, so with synchronization of operations, required changes can be brought in inventory, logistics and transportation.

Take for instance, with verified KPI data about a product, a retailer can be wise in inventory management. The retailer can move inventories to the location closest to order inquiries and from where most orders are getting generated. This can save time, cost and avoid stocking of products. Movement of goods are done well in advance to avoid rush periods, stock-outs or stocking up of goods. Logistics and transportation are mobilized efficiently and quite ahead in time, as there is information on expected rise in demand in future.

4. Optimize Performance: Overall logistics performance can be improved and made efficient when businesses have actionable insights from data. To elaborate, for reduced transit times via multi-modal connectivity, it is important to plan network and optimize route for ensuring smooth journey for packages from the point of origin to the final destination. This is only possible when there is movement visibility, knowledge about location or region-wise rules and regulations. The real-time sharing of data can mobilise resources in the right direction and avoid any additional costs.

5. Quick Resolution of Problems: Critical decision related with fleet management, driver, sourcing, load, rates etc. can be managed in real-time as there is a continuous sharing of data. The real-time shipment monitoring is quite helpful in optimizing last-mile delivery at the lowest possible cost.

Supply chain management is a very complex and important aspect of eCommerce or any kind of business model. The only way to channelize automated information is integrating the system with data analytics. It simplifies correlating of data and allows instant conclusion, even if there is continuous flow of information during movement of a package for order fulfillment. Artificial Intelligence syncs data and produces actionable insights in real-time for making strategic decision for logistics and transportation.

Advatix Cloudsuite™ Generates Actionable Insights for Optimization of Logistics & Transportation

Advatix Cloudsuite™ provides cloud-based logistics solutions that optimizes your supply chain processes, increases operational efficiency, improves utilization, and reduces logistics expenditure.