Making the Most of Your Logistics Data: How to Prioritize and Contextualize It

Making the Most of Your Logistics Data: How to Prioritize and Contextualize It

Q. How can logistics technologies be utilized as a competitive differentiator?

A. Today everyone has access to the same vast offerings in the logistics technology arena. Typically, one solution won’t solve your problem, but it will offer data that enhances your staff to make better and faster decisions.

Differentiate from others by putting your own spin on the data or use it in combination with other tools. It’s important to note that technology and data must also evolve with your company and the industry you compete in. This means your data must be constantly updated. If done correctly, you can maintain a competitive advantage.

Q. How can data solve logistics problems for shippers?

A. The number one area where data can make an impact is helping companies improve their operations. This includes everything from which delivery routes to use to better forecasting of supply and demand. Data can be used to optimize lead times, help inventories reflect market demand, and improve on-time production and delivery.

The goal is to make the supply chain efficient and predictable. And in turn, many times companies can find ways to cut costs without sacrificing service or speed.

Q. What data is best?

A. Depending on the situation, you should identify the problem or area requiring improvement. With so much data available, some mistakenly review every type of data that’s collected.

But when it comes to knowing what logistics data to prioritize, it often comes down to a few key areas:

  • Order fill rate — is everything getting shipped that should be?
  • Units per hour — how fast can the order be picked, packed, and shipped?
  • Mispick rate — how many shipments are being received by customers with the wrong product?
  • On-time delivery rate — are the delivery timelines for customers being met?
  • Orders per truck — are the assets being used efficiently?
  • Perfect order rate — how often is everything going right?

While it can be incredibly valuable for businesses to spend time reviewing raw data to gain an advantage, context is key.

R2 Logistics offers industry-leading supply chain management services to shippers of all sizes. R2’s transportation management system allows customers to rate shipments and receive real-time visibility into their logistics network.

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