Skip to content
Stories / How Data Is Changing the Logistics Industry

How Data Is Changing the Logistics Industry

Data has fast become one of the best transformation tools for businesses in different industries, and the logistics industry is one of the top beneficiaries. Considering the complexity, dynamism, and intricacies of the logistics industry – particularly in the supply chain – data and analytics applications are important for maintaining several areas of its operations.

Logistics companies require valuable insights to optimize their operations. The best way to ensure that this happens is by introducing the use of technology and data into the entire process. 

Over the years, the logistics industry has evolved in how it uses technology to optimize its network efficiencies, moving past the period where only computer systems were being used to power retail and shipping businesses to where data is helping industry players make faster and more intelligent decisions with improved quality performance.

Although data requires specific processing and management, it has brought the most consolidation to the industry and will continue to give way to more advancements. 

5 Ways Data is Impacting Logistics

Here are some key ways through which data is changing the logistics industry:

1. Performance Management

The logistics industry isn’t only about taking, tracking, and delivering orders to customers; more paperwork and administrative operations are involved to ensure optimum performance management. The industry has many facets, and data can play a huge role in solving efficiency, operational, and performance issues.

Data insights can help logistics companies track their major metrics, manage the various aspects of human resources, provide mandatory reports, and monitor transparency through the supply chain network. Data can also help simplify many procedures, emphasize areas that require intervention, and provide insights into the logistics network's intricacies.

2. Route Planning and Optimization

Bad routes, traffic, and long travel time are some of the main problems experienced during delivery. However, with access to weather, GPS, and road maintenance data, logistics companies can cut down on these inefficiencies, improve visibility, and find the best possible routes for a fast-paced delivery.

Good customer experience is hinged on speedy delivery and real-time visibility in the logistics industry. Data can provide easy traceability of shipments, route planning, and an improvement in operational aspects, increasing customer loyalty and improving the quality of partnerships. 

3. Customer Satisfaction and Productivity Improvement

Real-time data sharing is indispensable to improved productivity and customer satisfaction. In logistics, all partners must be connected through all lines of operations, and the best way to ensure this is through the use of data.

Data provides insights on operational activities, customer demand, and other information that can be used to improve operational efficiency. This can foster higher transparency levels, streamline processes, increase quality, and improve business performance.

4. Smarter Forecasting and KPIs Metrics

Several expenses are involved in logistics operations, and it’s important to anticipate them accurately. Forecasting with the right metrics will help draw the line between profitability and loss in business. Forecasting, metrics, and KPIs are some of the elements that allow for the monitoring of performance, and they’re based on real-time data. 

Data analysis combined with artificial intelligence operations can help point out inconsistencies such as errors in picking rates, delays in picking procedures, or loss of items. Data gives logistic business owners the edge and insights into customer demands, inventory costs, and shortages in a way that can be converted into profits.

5. Digitalization of Key Operations

Lastly, the logistics industry largely depends on data and automation. Many areas - such as pricing, planning, customer relations, and loading shipments - can be largely digitized to optimize operations. 

From problem-free experiences to a visible internal operating system and an automated network of previously manual processes, data helps automate crucial business processes.

Driving the Logistics Industry Forward

The logistics industry is experiencing many changes, largely due to the evolution of new technologies and the rise of a new digital world. One way the businesses in this industry are maintaining sustainability is by leveraging data to improve operations, drive efficiency, and improve the entire customer experience.

If you’re looking for a reliable partner that understands these changes and can help you take your business to the next level, Ziing can help. We offer the integrated, automated, and data-driven solutions you need to stay ahead of the curve. If you're ready to drive your business forward using the power of data, contact us today.

Book Your Demo Now

See how our market-leading logistics solutions can help transform your business.