Logistics and supply chain management are in transition. And the transition in logistics technologies is occurring faster than usual. Covid-19 accelerated that transition, and now the pace of change shows no sign of slowing.
As new logistics technologies mature and take hold, new ways of doing business will evolve.
That new way will likely shape up to be unrecognizable compared to its not too distant past. (Logtech) is all the rage. Call it the Logtech moment.
This blog post will kick off a series on emerging technologies expected to show benefits in 2022. Some of those include analytics, Big Data, and the Cloud.
Also important to implementing analytics are data governance and data science. Both are necessary to realize the potential benefits of these new technologies.
We’ll focus on analytics in this post. Then, we’ll analyze the other promising logistics technologies.
With that, we’ll start with analytics.
Analytics is growing and has momentum behind it. Driving analytics is the increasing competitiveness of the new operating environment. The new operating environment comprises supply shortages, capacity shortages, and rising energy prices.
And that’s against a backdrop of increasing customer expectations.
These constraints make “business as usual” a non -starter. To succeed today, your business must execute with agility, speed, and resilience. That’s no simple task, and that were analytics can make a difference.
The Growth of Data-based Decision Making
Data based decision making has arrived. It’s in its infancy, but the technology to support it is here and the momentum is growing. The momentum stems from the need to reduce uncertainty and promote reliability. Today’s volatile and uncertain marketplace calls for stability. If you can offer stability, you will breed comfort and trust.
Also, in reducing volatility and uncertainty, your workers will develop a spirit of calm under pressure. They will improve customer service by meeting expectations routinely. They will achieve that by providing timely delivery at the right price.
That will become possible as data driven decision lead to reduction of waste of time and money. Fact-based decisions will improve customer service by improving responsiveness. And that will enhance agility and resilience.
Your business can leverage data-driven decisions to achieve enhanced responsiveness. Doing so will help you reduce cycle times and streamline operations. That will contribute to giving customers greater confidence, as they see the results of predictive analytics.
Also, as analytics take hold, businesses will experience a shift in thinking from logistics-as-cost-centers to logistics-as-profit-centers. Making smarter decisions will lead to gained efficiencies, reflected in the bottom line.
These same benefits will also boost employee morale. Their accomplishments will give them a sense of satisfaction. Your employees will be more assertive and gain confidence, regardless of the challenges.
Beyond that, analytics have entered the realm of predicting outcomes. We’re talking about predictive analytics. That’s because it can reveal potential risks and innovative insights, and anticipate customer needs.
Predictive analytics can be a powerful tool. In identifying emergent risks, you can take action to avoid or avert a risk event. Addressing risk proactively will give your customers greater confidence in the future.
It will enable a “proactive” versus a “reactive” mode of operations. That will foster dynamic management, while improving operational reliability needed in today’s marketplace.
Plus, predictive analytics will help you anticipate customer needs. Knowing customer needs in advance will contribute to improved customer service. You can do that by uncovering deeper insights about the future not evident before. That will generate enthusiasm among your employees, as they provide useful solutions.
This will further cultivate a customer-first attitude among your employees. It will boost and reinforce a service-oriented mindset necessary in today’s new reality.
Furthermore, analytics can take your business to new heights and levels of performance. In particular, the use of unstructured data offers new opportunities because of new technologies. Specifically, unstructured data can lead to new and deeper insights.
Unstructured data, now added to the mix, can reveal insights not evident before. Leveraging a holistic data set can also lead to breakthrough results. Expanding your data sets with unstructured data will give you a more accurate view of your operational effectiveness. That will help build greater trust in your process.
The benefits include accelerated decision making that supports speedy operations. As your employees make quicker decisions more often, their confidence and convictions will grow because of the clarity of the data information they are working with.
The Value of Data Analytics in Logistics
Business is changing with supply chain management as a key driver of that change. Previously, businesses viewed supply chains as cost centers. That led to managing supply chains as a means of cutting costs. As new technologies, like analytics, emerged, the view of cost-cutting gave way to supply chains as profit centers.
Then Covid-19 came onto the scene. That hastened the adoption of technologies as a way to increase competitive advantage. Analytics stands out because it promises to deliver results as early as 2022. The growing maturity of analytics has accelerated its adoption.
At American Global Logistics we don’t just watch trends, we embrace them. We’re sticklers for data-based decision making. So we place a great reliance on analytics that supports your business.
Contact American Global Logistics if you want to learn how we can help you leverage this game-changing trend.