We can confidently say that nearly 100% of companies with logistics operations are striving for operational excellence—because they understand the benefits it brings and are well aware of the consequences of failing to achieve it.
To access valuable information, companies are investing in AI. A report by Business Wireshows that the global AI market in transportation and shipping rose to $3.1 billion in 2023, compared to $2.6 billion in 2022, reflecting a compound annual growth rate of 19.4%.
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Let’s take a closer look at the role data plays in logistics optimization.
Define Strong Objectives Based on Accurate Data
Market competitiveness and customer demands push companies to improve not only their production processes, but also their logistics operations in order to reduce costs and delivery times. To achieve these improvements, it is essential to have valuable, real-time data, which allows for the definition of solid KPIs and ensures accurate performance measurement.
These KPIs will help us achieve scalability, as they address bottlenecks in both production and transportation route optimization. They also contribute to reducing production costs related to waste and inefficiencies in manufacturing processes.
To better understand the importance of data, according to a study by Coyote Logistics, obtaining consistent data (41%) and adapting strategies based on results (41%) are the top KPI challenges for carriers, followed closely by merging data from multiple providers (40%). This underscores that having the right data leads to better decision-making.
However, collecting data is not enough; it is also essential to analyze and interpret it, enabling industries to evolve and to draw accurate strategic conclusions.
Big Data: The Driving Force Behind Logistics Optimization
Let’s remember that Big Data allows companies to collect, analyze, and leverage massive volumes of information to make informed decisions and drive innovation. Here are some of its main advantages in the logistics sector:
It’s very common to have doubts about what Big Data looks like in tangible terms, so we’ve prepared the following insights:
All these tools and applications will become increasingly relevant in the near term, empowering companies to make better decisions—not only operational, but also strategic. Companies that prioritize having constant, real-time access to quality data will gain a competitive edge over both competitors and consumer expectations.
Posted by: G.I.Eicom
Leaders in Material Handling & Intralogistics Solutions