- Big data and data analytics offer great promise now, in the near future and beyond.
- Some benefits are obvious others are not – but they’re real and have lasting value.
- Besides providing insights into improving performance, financials, and customer service, big data and data analytics support innovation.
- Routinizes data-based decision-making, giving your business a clear competitive edge.
Big Data and Analytics is an emerging technology trend. It’s a growing trend because it generates real value – apparent and hidden.
Big data and analytics are not a panacea. But they can make consequential contributions in the logistics industry.
That is, big data and analytics can address many of the industry’s top challenges. Properly implemented, big data and analytics can be a game changer.
Challenges exist in supply chain visibility, transportation, finance, customer service, and more. More important, big data and analytics provide concrete value, some of it clear and some of it not so clear.
This blog post will look at the value big data and data analytics bring to logistics, transportation, and supply chain management.
Noticeable Value of Data-based Decision making from Big Data and Data Analytics
Data-based decision making is coming to logistics and supply chain management. According to a Forbes article citing an Accenture study, 79 percent of enterprise executives say that not embracing big data will cause companies to lose competitive advantage. Worst case, they will die.
Also, according to Terradata , data analytics can improve efficiency, optimization, and customer satisfaction. Below are benefits of big data and data analytics.
- Enables precise decision making eliminating guesswork based on assumptions.
- Reduces waste in daily operations, reducing costs.
- Enables quicker decision making reducing decision-cycle time.
- Enables optimized operations through shortened cycle times improving customer service.
The use of real-time data enhances rapid decision making that is becoming a fixture of the New Normal. Customers as well as you will recognize the immediate value of this capability.
All in all, data-based decision making leads to more effective and efficient operations. That will leave your competitors without this capability at a competitive disadvantage.
Noticeable Value of Reduced Disruptions from Big Data and Data Analytics
- Analysis of real-time data helps prevent, avoid or mitigate supply chain disruptions.
- Analysis of historical data helps identify alternative responses to past disruptive events.
- Analysis of relevant data helps promote reliability, seamlessness, predictability.
- Reduces overall risk posture through improved risk detection and management.
- Enhanced supply chain risk management – will facilitate greater agility, reliability, and resilience.
This will prepare your business for operating at the highest level. You won’t get waylaid by increased volatility and uncertainty of the New Normal.
Noticeable Value of Financial Benefits from Big Data and Data Analytics
Big data and data analytics applied smartly can reap financial benefits. Here are two key financial benefits you can expect when you embrace big data and data analytics.
- Operating on data-based decisions results in noticeable cost reduction.
- Operating on data-based decisions enhance profitability.
Thus, big data and data analytics will strengthen your bottom line. You’ll be able to invest more in your people, plant and equipment, and innovation.
It helps create a virtuous cycle of investing. The more you invest, the more revenues you can earn. The more you can earn, the more you can profit. The more you can profit, the more you, your employees and you can prosper.
Hidden Value of Savings/Cost Avoidance from Big Data and Data Analytics
Businesses that employ data-driven projects saw profits rise up to 10%. Moreover, these same businesses experienced cost reductions of 10 percent.
Here are some benefits you can expect from implementing big data and analytics.
- Improved operating tempo resulting in more efficient operations daily, weekly, monthly.
- Increased reliability, seamlessness, and predictability, over time, will result in tangible financial benefits.
- Improved bottom line will increase revenues, market share and competitive advantage.
Moreover, hidden from clear view are real benefits. They’re, hidden yet unmistakably there. As you compare year-over-year metrics, the hidden benefits will come to light.
Benefits will accrue from end-to-end visibility, better financial visibility, and other digital transformation efforts.
Hidden Value of Predictive Analytics from Big Data and Data Analytics
To begin with let’s define predictive analytics. It belongs to a branch of advanced analytics that uses historical data to forecast future outcomes. With that below are some key benefits you can expect from predictive analytics.
- Predict outcomes enabling informed decision making – pivoting from reactive to proactive decision making.
- Identify root causes of problems enabling quicker, targeted, and lasting solutions.
- Gain tactical insights that inform current operations.
- Gain strategic insights that inform future direction.
- Head off problems… before they occur.
- Reduce cost and risk.
Predictive analytics can also promote innovation by identifying gaps and opportunities. Innovation can improve business processes. It can enhance sustainability and compliance. And it can find new ways of providing enhanced customer service.
The Promise of Big Data and Data Analytics
It should now be obvious that big data and data analytics offer you a big promise. They offer both clear and hidden benefits. Moreover, these benefits are enduring. They can result in permanent changes that improve operations, finance, customer service, etc.
More specifically, data-based decisions can give your business a clear competitive edge. The value of data-based decision making becomes clear-cut once you drill down beyond the obvious to the hidden benefits.
A solid business intelligence program will put you on the path to competing at a higher level. You’ll be doing business better, faster, cheaper despite increased volatility and uncertainty.
More important, you can further leverage these emerging capabilities. That is, you can further benefit by working with a 3PL who’s familiar with data-based decision making.
At American Global Logistics, we use a mix of technology solutions that benefit our clients. We help our clients get what they need, and we can help you get what you need.
We can help you achieve consequential benefits associated with data-based decision making.
Data-based decision making may be the perfect antidote to operating in today’s New Normal.
Contact us to find out how we can help as you take your next steps into the future of the New Normal.