Effects of Big Data in Logistics

February 13, 2020

Effects of Big Data in Logistics

Big data is revolutionizing many fields of business, and logistics industry is one of them. The complex and dynamic nature of logistics, along with the reliance on many moving parts that can create bottlenecks at any point in the supply chain, this makes logistics a perfect case for big data. In logistics industry big data can be used to optimize routing, streamline factory functions, and to give transparency to the entire supply chain, for the benefit of both logistics and shipping companies. Third party logistics companies and shipping companies both agree that improved data-driven decision making is much needed to the future success of supply chain activities and processes. The global logistics industry involves an series of recipients like shippers (manufacturers, retailers, distributors) who make/sell the products that need to be stored or moved; logistics service providers (third-party logistics providers (3PLs), 4PLs, freight forwarders, ocean shipping, trucking, rail, air cargo) who store and move products, logistics hubs (airports, sea ports, rail terminals) and regulatory authorities (customs) are looking at using the immense data available at their disposal to make profitable decisions based purely on data and not on past trends or any other factor which does not have the same effect that data can bring about.

Big data on the other hand requires a large amount of high quality information sources to work effectively. Where is all of that data going to come from? Big data in logistics gives a large selection of possible data sources which include:

• Traditional enterprise data from operational systems

• Forecasting systems and data points

• Vehicle diagnostics, driving patterns, and location information

• Financial business forecasts

• Advertising response data

• Website browsing pattern data

• Social media data

So clearly, there are many ways that data systems can be feed the information they need. All of these data sources and potential use cases have lead DHL to say that big data and automation technology will lead to “previously unimaginable levels of optimization in manufacturing, logistics, warehousing and last mile delivery”.

As for many other industries, data gathering and data management is becoming bigger and bigger, and professionals may need help in that matter. The logistics industry is slowly embracing that trend. It looks like the future is bright for logistics companies that are willing to take advantage of big data.