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In today’s digital world, data is the undisputed king. Data-driven decisions are logical, strategic, and rooted in reality, helping you chart a clear way forward based on what’s happening in the world, in the industry, in your organization, and in the moment.
With more widespread adoption of AI, IoT, and other sensor-driven automation technologies, insights are more precise, which supports agility, mitigates risk, and enables business growth.
How to Improve Your Logistics Decision-Making with Data
To inspire and inform your logistics decisions, here are seven ways you can engage your data to power logistics success:
1. Know what data to track—and what to ignore.
Knowing what data you need to pay attention to is more than half the battle. Every industry has specific key performance indicators (KPIs) that matter to them, but they might not make sense from a logistics standpoint. Transportation metrics matter, but if you specialize in specific industries, those are the numbers that will make the most sense. Consider your costs, service goals, and business strategy and measure based on those objectives.
2. Choose transportation management technology with data in mind.
Before deploying new technology, ensure it delivers the insights you need to align to your business goals. Think about where you expect to be in the future and what processes might change. Choose solutions that can integrate the technology you need. You want something that will serve you well for years to come.
3. Make the most of new technologies.
Automation drives cost-efficiency and solves many of the problems we’re facing today. It answers widespread issues with labor shortages, lack of capacity, and high demand. The right technology simplifies and streamlines workflows and helps you overcome these challenges.
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4. Measure the network.
If you’re overly focused on your own processes, you might be missing the bigger picture. Consider the totality of what’s going on in the industry and the forces that might impact performance. Cost and on-time metrics are just one piece of the puzzle. When you consider it against the larger landscape, it’s easier to understand why problems are happening—therefore, it’s easier to do something about it.
5. Analyze transportation and optimize continuously for cost and time efficiencies
When transportation isn’t managed well, it has a ripple effect on timelines and profitability. Optimize loads for maximum time and cost efficiency, enable route optimization, and ensure packaging is appropriate to reduce breakage in transit.
6. Evaluate and redefine your standard operating procedures.
Monitor and adjust operating procedures to reflect changes in the market. Act quickly when you identify inefficiency—an agile approach helps you maintain max capacity in every process.
7. Optimize warehouse management.
Using a warehouse management system (WMS) helps you optimize operations and speed processes, improving productivity from end to end. Making the most of available space, placing fast movers in an accessible position, and ensuring perishable goods are stored correctly are just a few of the ways a WMS can help.