The value of data-driven decisions
A few months ago, we posted a blog about five trends that are having a lasting impression on last mile delivery services, including data-driven decisions and the increased use of electronic data interchange or EDI. In recent years, more companies have begun relying on data to drive their decision making, and they do this because they are all aimed at increasing their company’s efficiency.
Big data being used by big companies
For most companies, higher efficiency is a main goal of their organization. In recent years, with the increase in online shopping, and therefore increased shipping demands, companies have had to change how they make decisions. These companies have also found that analytics is a driving force behind how they make decisions.
Big data can be used throughout a company; however, it is most beneficial in logistics. This data can be used to choose the best routes, to increase the efficiency within a factory or warehouse, and to give the entire supply chain of a company more transparency. This big data can help the logistics division of a company, but it is also helpful for shipping companies and third-party logistics providers.
Logistics and warehousing industries using data
For logistics, warehousing, and supply-chain business, making decisions driven by data is an essential part of running a company efficiently. Data can measure everything from time management to inventory, providing much-needed speed to these industries.
For last-minute delivery services, big data can help to streamline the delivery process and create more efficient routes for the drivers. Big data provides a company with the necessary information to overcome the obstacles of delivery, including weather conditions, traffic and construction patterns, changing fuel costs, and information about the company’s truck fleet.
For the warehousing industry, big data is the drive behind automation of warehousing services. Warehouses already depend heavily on electronic data interchange (EDI) to help with communicating with their customers and maintaining accurate records for their deliveries. With the incorporation of big data into the decision-making process on top of EDI, the system is headed toward automation and increased efficiency.
Concerns about big data decision making
One of the biggest concerns with a reliance on big data is the accuracy of the data. The system is in place to rely on big data when making decisions, but how can a company be ensured of the accuracy of the data? An estimated 80% of the data recorded and used is unstructured. For many companies, overcoming this concern will be their biggest obstacle.
In Northwest Arkansas, Little Rock, and Tulsa, On Time Logistics is the premiere last mile delivery provider, and we are on the forefront of the latest trends. Our expertise and professionalism make us an excellent choice of logistics providers. Do you have a need for last mile or other forms of delivery? Give us a call.