Data Analytics: The Future of Logistics
STORY INLINE POST
The COVID-19 pandemic triggered a digital evolution and ushered in "The Age of Data." Today, harnessing valuable information is vital in a time of transformation for all industries seeking to be at the forefront of technology and innovate the way they do business through the application of data analytics.
Data analytics makes it possible to examine a company’s information to detect new areas of opportunity, reduce risks in management decisions and work on areas of improvement within the organization.
During the most critical months of the health contingency, the main objective of the implementation of data analytics in the logistics industry was to consolidate the flow of information in the supply chain to gain a better commercial overview and, above all, to be able to anticipate and act efficiently in the face of future scenarios.
In this sense, technologies, such as business intelligence, big data, machine learning, data mining, deep learning, mobile applications and the Internet of Things, are revolutionizing logistics processes with the aim of making companies competitive in the face of future contingencies and to meet the needs of an increasingly demanding and interconnected market.
Undoubtedly, in a globalized world, digital adoption is no longer an alternative for companies; it has become a necessity to achieve economic recovery and offer high-impact solutions in the supply chain, optimizing operational processes, reducing budgets, updating strategies, understanding consumer trends in real time and improving efficiency in last-mile delivery.
At Onest Logistics, we generate data collection and analysis for our clients end users. The application of Data Analytics allows us to evaluate the trends that were presented during 2021, and anticipate where we are going, to start 2022 with new predictions and greater certainty. It is important to mention that this Mexican company provides its clients with updated data in real time, and constantly generates information so that logistics models are fed by continuous streams of research.
From our experience, information connectivity can improve the productivity of people, number of forklifts, strategic distribution and usage tools, which can lower budgets by 10 percent to 15 percent. Companies that implement this type of solution need to make an investment of around $ 200,000 dollars.
In a constantly evolving environment, technologies allow for better stock control management, warehouse diversification, inventory organization and shorter delivery times, as well as providing intelligent information for instant decision-making.
With the leadership that distinguishes Onest Logistics, it has always adapted to the needs of the market and now, to the digital transition that all industries are facing. Over the last year, 30 percent of online sales are already referral sales through social media and various internet platforms; however, all this information can be obtained through data analytics by evaluating the behavior and purchase prediction for each of our customers.
The implementation of data analytics identifies new opportunities and, at the same time, achieves high-impact operations, with greater profits and more satisfied customers. For this reason, logistics operators continue to innovate and implement new technological models that meet the needs of global demand.
Onest Logistics has become the experts in e-commerce and technology developments by exploiting and harnessing the power of data to streamline supply chain processes. However, data analytics can do things that have never been thought of before.
This leading company in logistics services, has been working for years on the implementation of Data Analytics and other own developments of technological intelligence with the purpose of continuing to innovate over the years with the trends that exist to develop all the information and prepare the company to be able to offer its customers valuable reports on the behavior of products, movements and recommendations.
In the framework of the new normality, we detect that the main technological tools for companies are:
- Having up-to-date and quality data in real time for fast and efficient decision-making.
- Data governance: better data management.
- Data-driven organization.
- Data storytelling: making your data speak.
- Data security.
- Synthesizing and exploiting diverse data sources.
- The advent of "Selfservice BI."
- Massive use of the cloud.
- The development of predictive relationships.
- Artificial intelligence.
Today, a fully digitalized company can control all its warehousing and distribution processes through various systems in real time to provide a better experience to its customers. The automation of the logistics industry, the implementation of software, operating machines and monitoring devices does not mean that human talent will be replaced. On the contrary, these technological solutions boost training and the creation of new, specialized positions.
In this same scenario, information analysis is taking center-stage and is increasingly gaining momentum in the development of new business models that meet market expectations to make logistics services and goods distribution more efficient.
In the first months of the health contingency, it was impossible to predict that all industries would face significant changes in operational processes and foreign trade to meet purchasing and product supply requests, forcing companies to reinvent themselves and adapt to a new digital environment to survive.
The pandemic has taught all companies a lesson about the importance of implementing technology solutions to strengthen sales efforts and find potential customers in need of short-term supply chain strategies, particularly in the consumer, fashion, electronics, automotive, pharma and retail sectors.
Against this backdrop, the industry demands an immediate reaction in order to measure the impact on its logistics operations. At the beginning of the contingency, logistics operators faced major challenges in the face of poor planning by companies and the demand for essential goods, which led to a shortage of basic necessities.
The increase in home-based shopping drove the e-commerce boom, a trend that will continue to grow in the coming years and increasingly requires immediacy, efficiency and new strategies to understand new consumer habits. In addition, the increase in goods has led to the demand for industrial space, freight transport and product sourcing.
At this moment, the implementation of technology in companies represents competitiveness, as it is part of the evolution of digital tools that allow taking advantage of state-of-the-art knowledge to apply it in product manufacturing, storage logistics and route optimization to ensure greater safety in transport.
Undoubtedly, the future of the logistics industry will rely on innovation, resilience and data analytics to ensure high-impact results in operations and strategies. One lesson learned from the healthcare crisis is to adapt to market trends and implement new business models that are competitive in international trade and ensure the long-term success and stability of companies.
About ONEST LOGISTICS
Onest Logistics is a leading Mexican logistics services company, recognized for its reliability, values and commitment to its customers. In the last few years, Onest has consolidated its position as the first and largest Mexican company in the 3PL sector, competing with all the transnational companies, based on our three main pillars, which are technology, flexibility and consolidation.
For more information visit: https://www.onestlogistics.com/