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Analytics in logistics. What to do to increase revenue
In today's world, getting goods from seller to customer is an art form. Every company wants its goods to reach customers quickly and cost-effectively. This is where analytics comes in - using data to improve logistics operations. This is what helps to solve many problems. Together with LLC «SyncraNova» specialists, we learnt how it works and what can be done to improve logistics with the help of analytics.
How analytics helps in logistics
1. Route optimisation
Why: The faster your lorry gets there, the less money you spend on fuel. Plus, the truck will be freed up faster to take the next order.
How to use:
2. Improving warehouse operations
Why it's needed: warehouses often experience confusion and delays. You need to know where things lie and how much stock is available.
How to use:
3. Forecasting demand
Why you need it: if you don't know what sells well and when, you can be left without profit.
How to use:
How analytics helps in logistics
1. Route optimisation
Why: The faster your lorry gets there, the less money you spend on fuel. Plus, the truck will be freed up faster to take the next order.
How to use:
- Install GPS trackers in your vehicles. This will help you track your location and choose the most efficient routes.
- Use route planning software that takes into account traffic jams and weather conditions. Try tools like Google Maps or specialised TMS systems.
2. Improving warehouse operations
Why it's needed: warehouses often experience confusion and delays. You need to know where things lie and how much stock is available.
How to use:
- Implement a warehouse management system (WMS) to help track inventory in real time.
- Conduct regular inventory counts and monitor stock data to avoid shortages or overstock.
- Optimise the placement of items in the warehouse based on frequency of use. Place the most popular items closer together.
3. Forecasting demand
Why you need it: if you don't know what sells well and when, you can be left without profit.
How to use:
- Analyse last year's and older sales data to understand which seasons and days of the week have higher demand for certain products.
- Work with marketing teams to factor in upcoming promotions and events that may affect demand.
4. Resource optimisation
Why you need it: It is important to allocate people and machines correctly. For example, not to leave lorries idle or, on the contrary, not to overload drivers.
How to use it:
Why you need it: It is important to allocate people and machines correctly. For example, not to leave lorries idle or, on the contrary, not to overload drivers.
How to use it:
- Make schedules for drivers based on analyses of their workload and working hours.
- Implement systems to monitor employee performance to find opportunities to improve efficiency.
- Use fleet management software to track vehicle condition and schedule maintenance.
How to start using analytics in logistics
Here are some practical steps that can help:
Analytics in logistics is like a captain's compass: with the right data, everything runs faster, shipments don't get lost and customers are happy. The smarter your approach to data, the lower your costs and the more money in your pocket.
Here are some practical steps that can help:
- Implement software: start by installing simple systems to monitor and analyse data. You can use free tools at first, such as Google Sheets (free Excel online). Upgrade to more sophisticated TMS systems as needed (help plan routes, track deliveries and optimise shipping costs).
- Data collection: collect data on everything, including deliveries, stock, customers and their preferences. It's important to have a complete picture to make informed decisions.
- Hiring analysts: create a department that will be responsible for analysing the data. This can be one or two people who will monitor processes and suggest improvements.
Analytics in logistics is like a captain's compass: with the right data, everything runs faster, shipments don't get lost and customers are happy. The smarter your approach to data, the lower your costs and the more money in your pocket.