How Big Data modernizes Logistics
From startups to large scale enterprises, each organisation is on the verge of adopting information technology in their core business functions. Big data has been a buzzword since the last decade and is finally disrupting various industries together. Data consumption has been rampant across nations, and with huge data sets, organizations can generate useful insights. When an organisation collects data, it is able to provide various insights and applications in the entire logistics ecosystem. Every click on the digital media creates a data point and gets stored in the server.
Big Data and Logistics is a match made in heaven. The logistics industry has still not tapped the big data technology at scale. The logistics industry is at the right stage of adoption and transform big data from a buzzword to implement real-world use cases and demonstrate growth in the arena.
Adoption at scale
A study shows that 33% of the C-level executives are on the verge of making decisions regarding the implementation of Big Data Analytics in the supply chain. The industry thought leaders are allured by the various benefits of Big Data, which includes improved productivity, competitive edge, higher efficiency, grabbing new business opportunities as well as being future-ready. The adoption of Big Data helps in customer service, better reaction time to correct supply chain errors and increase the overall efficiency of the warehouse.
eCommerce and Logistics
One of the biggest reasons behind Logistics growth in this decade is the growth of eCommerce. The eCommerce industry in the U.S. crossed $517 billion in 2018. Logistics management and transport networks are set to grow and would require various microservices in the entire value chain. The sources of data are also set to grow and are currently being mapped from various external points.
- Enterprise data from operations and distribution
- Vehicle tracking, speed tracking, driving patterns and geolocation data
- Traffic and weather data from sensors, satellites and forecast system
- Warehouses and SKUs
- Website browsing and mobile applications
- Social media conversations
Advantages of Using Big Data
Big Data is a 56 billion dollar industry, and logistic being an unorganised sector at large, is being transformed by the adoption of Big Data. The myriad inefficiencies in Logistics can only be solved by insights driven from data and lead to robust decision making. There are various advantages of amalgamating Big Data and Logistics.
Automate Warehouses
Warehouses are now becoming technology enabled by Robotic systems, QR codes and Augmented Reality. Finding a consignment in a 10,000 sqft warehouse was done manually for decades. By enabling traffic sensors, RFID and creating an intelligent inventory management system is cutting down discovery time by half and is providing a better way to optimise resources.
Procurement
Inventory management is being disrupted by Advanced Analytics which analyses the patterns and association between products and data sets. This helps organisations to manage similar products which ship together at nearby junctions. Big Data can transform decision making and utilize the capabilities of the warehouse to it’s fullest.
Transportation
Analytics optimizes travel routes to minimise fuel costs, find the best routes without traffic, and lower the risk of accident at the time of delivering products. By analysing various data sets from multiple traffic densities, type of vehicle, and weather conditions can give myriad improvisations in driving performance and determine the delivery time. Transport operations can increase their efficiency by leaps and bounds and have a win-win situation by equipping advanced analytics. Customer as well as businesses, both can achieve benefits from this technology.
Warehouse Operations
The location and capacity of the warehouse impacts the entire supply chain performance and the company’s output. By equipping advanced analytics in warehouses, organisations can assess the performance of each warehouse. Companies can recalibrate their supply chain strategy and predict the products in demand. By having a clear insight, organisations can reorganize its Stock Keeping Unit (SKU).
Way Forward
The Logistics Sector is prone to get benefit from technological advancements in the field of Big Data. Modern logistic providers are dealing with a myriad of data on a daily basis by n number of data points. More than 230 million parcels get shipped every day, with varied origins, destination, weight, size, product and are tracked by various GDN (Global Delivery Networks).
However, the data is entirely scattered and stakeholders and not able to fetch the desired advantages. The untapped potential for improving warehouse efficiency and customer experience is leading to new business models and changing the mode of business. By digitizing the supply chain by data streams, multiple logistics providers can eliminate market fragmentation, collaborate and bring down the costs further down. Moreover, the market now understands that Big data is a game-changer for Logistics industry and more than 50% of industry experts said that they would be interested in investing in Big data analytics in the next 5 years.
The competitive nature of organisations will make Big Data adoption faster, and smart transportation and logistics will be a boon for the end consumer. By investing in the technologies earlier, companies can make sure to maximize profit, decrease inefficiencies and be a thought leader in Information Technology-based logistics architecture.
