How Advanced Analytics Can Transform Your Delivery System
In a world where businesses are expected to efficiently provide on-time deliveries, quickly adjust to new orders, and reliably reduce the risk of delivery errors, advanced analytics are no longer a helpful addition to your company’s logistics plan; they are a necessity. Specifically, advanced analytics use mathematical and statistical formulas and algorithms to generate new information, recognize patterns, and also predict outcomes and their respective probabilities. According to CSCMP’s Annual State of Logistics Report, the logistics industry has identified advanced analytics as having the biggest impact on supply chains. Additionally, another recent study reported that 93% of shippers and 98% of third-party logistics firms believe that data-driven decision-making is crucial to supply chain activities, and 71% of them think that data improves quality and performance. For all businesses in the construction and trades industry, studying your company’s advanced analytics can improve supply chain transparency, operational decision making, and your last-mile delivery efficiency.
Supply Chain Transparency:
Since companies and consumers both can easily view and track the status of orders, it is important that this information is accurately updated in real time. According to a recent survey, less than one-third of respondents viewed their supply chain process as effective, and although 84% of the same respondents reported that they have implemented real-time data sharing into their supply chains, only 13% have done so effectively. When companies use advanced analytics to automate their supply chain, they typically don’t regret it . A recent report found that 90% of respondents with autonomous supply chains saw their market share increase in the past year and 97% reported their customer satisfaction increased.
Operational Decision Making:
By using advanced analytics, companies can better prepare for both short-term delivery issues, such as unexpected weather or material shortages, and plan for long-term operational challenges, like predicting supply and demand forecasts. Not only will companies be able to adjust deliveries in response to real-time changes, but they will also be able to proactively make smart decisions that will benefit their customers. Furthermore, advanced analytics can help you understand seasonal buying patterns that impact your business. All of these benefits of advanced analytics can help your company avoid wasting valuable time and resources.
Last-Mile Efficiency:
As we have discussed in a previous blog post, the last-mile of a delivery is notoriously inefficient. To combat the difficulties of the last-mile delivery problem, advanced analytics can help your company find the most efficient delivery routes and automatically relay this information to your delivery drivers. Researchers from the World Economic Forum project that there will be a 36% rise in the number of delivery vehicles in the top 100 cities globally by 2030. With this projected increase, the last-mile delivery problem will only worsen. To deal with the last-mile delivery problem, companies should use advanced analytics so their orders can be delivered in the best way possible.
The Takeaways:
Investing in advanced analytics has become a necessity for all businesses, especially those in the construction and trades industry. Since consumers and companies both expect to receive shipments faster and cheaper than ever before, using advanced analytics to improve your deliveries can help you compete against the competition. In today’s global market, if your business does not use analytics to improve your service, it might not survive. Not only will implementing advanced analytics into your business improve supply chain transparency, operational decision making, and last-mile efficiency, but it will also help to improve your bottom line.
