At the crux of it, Big Data is exactly what the name suggests – enormous amounts of data extracted from hundreds of sources, including operations systems, customer interactions, vendor interactions, weather reports, social media, mobile devices, vehicle diagnostics and online activity. As far as the future of logistics is concerned, the benefits of big data are already being felt. Because of Big Data supply chain entities will be able to cut down on overall operating cost, develop newer business models, and maintain the standards of customer service.
Today, the transportation industry is highly dependent on real-time data from sensors deployed in delivery vehicles that monitor every aspect of the shipment, right from the dispatch of the parcel till its delivery. It provides information about the real-time location of the truck, the speed of the truck, driver’s capabilities, weather and road conditions, the frequency of maintenance needed, etc. This information is vital for the transportation companies as well as the individuals and businesses relying on them, as this information gives them an exact estimation of what it takes to deliver a shipment from point A to point B. this data can help the Logistics companies to redesign their business model and strategies.
At the core of the supply chain business is a business’s inventory. Efficiently managing the inventory can be difficult without adequate and accurate data and can further lead to customer dissatisfaction. But with the deployment of Big Data to inventory control systems, businesses are able to trim inventory depreciations, increase the speed at which inventory turns over, provide consistent time for delivery, increase available floor space, and reduce back orders and other customer pain points. All of this is because of the access to real-time Big Data that helps them anticipate the movement of inventory more accurately.
Furthermore, Big Data lets the businesses improve risk analysis, which helps the businesses to be better prepared for handling the variables that come with producing and shipping products and avoid risks.
Big Data in the transportation and supply chain industry, has the potential to make impossible possible. Big Data is the ultimate resource available to latest supply chain entities and can further be used to improve B2B and B2C relationships.