Increasing Use of Data and Analytics to Improve Logistics Efficiency and Cost-Effectiveness

Increasing use of data and analytics to improve logistics efficiency and cost effectiveness

Logistics has never been more complex than it is today. The worldwide idea of the inventory network has made continually moving elements that can essentially influence an organisation’s benefit. This was made clear by the mind-blowing strain put on strategies because of the Coronavirus pandemic. In response, data analytics is helping manufacturers, shippers, and retailers gain visibility into their operations and optimise them so they can better deal with the unexpected. Thus, information-driven organisations are expanding overall revenues and consumer loyalty levels.

Let’s look at specific ways that data and analytics is improving logistics efficiency and cost-effectiveness :

1. More Accurate Supply and Demand Forecasting :

Utilising the abundance of exclusive and outsider information accessible, organisations can follow and adjust to shifts popular close to continuous. Enormous information investigation permits organisations to produce more exact market interest figures to illuminate stock and shipment arranging.

2. Inventory Management :

If a product is out of stock, there’s a high probability that customers will move their buying conduct. An IHL study uncovered that 37% of clients who experience an unavailable thing will buy from an alternate brand, while 21% will purchase from an alternate retailer.

3. Warehouse Management:

In addition to reducing stockouts and overstocks by optimising inventory management, data analytics can also improve the efficiency of warehouse management. Companies can track the movement and location of stock and combine this information with sales data to identify the best location for each SKU in the warehouse and find opportunities to streamline.

To improve their operations, companies should identify risks associated with their suppliers. With this information, companies can either work with their suppliers to solve the problems creating the risks or select new suppliers if the risks can’t be mitigated (i.e. incidents of natural disasters or political instability that affect the supplier’s ability to fulfil commitments).

4. Supplier Risk Management :

To improve supplier risk management, companies can track any indicator that reflects a risk, such as:Late shipments

  • Delivery to the wrong location

  • Delivery of the wrong product or quantity of product

  • Inefficient processes used by suppliers

  • Regulatory compliance issues

5. Prevent Loss with Better Fraud Detection :

Fraud can be costly for a business in any industry. Data and analytics can help organisations discover trends that point towards suspicious activity to reduce fraud and thwart criminal efforts. For example, big data can help retailers build profiles and set thresholds for normal customer behaviour regarding the purchase of a specific product over some time. With this baseline established, retailers can then identify customers whose behaviours indicate that they may be committing return fraud. Retailers can then blacklist these customers or take other actions to help prevent return fraud.

6. Performance management :

Solving inefficiencies and ensuring operational standards are respected by tracking any metric along the supply chain. Performance managers transform data insights into actionable results, such as the optimization of resource consumption or delivery routes. For instance, shippers expect drivers to arrive on time, maintain docking schedules, and avoid wasted time. Data can help us to understand and monitor the performance of the workforce.

7.Productivity improvement :

Real-time data sharing with all partners is essential. The insights that a company gathers are useful both for a logistics company and for its partners. This type of data sharing in logistics can help improve operational efficiency by capturing fluctuating customer demand, external factors, and the operations of the partners. It will enhance transparency and help all stakeholders to streamline their processes, ultimately improving the quality of operational processes, and the overall performance of the logistics business.

Challenges to implementation of Big Data Analytics:

According to a survey, 37% of managers have just “engaged in conversations” to implement analytics. 27% of those who have implemented big data analytics have it operationalized and embedded into critical supply chain processes. However, 57% of respondents use big data as logistics management solutions on an ad-hoc basis. Some of the main barriers for individual companies are:


business logistics experts may have large volumes of data but lack the expertise to see and analyse it as the graphic interface is not user-friendly.


the amount of high quantities of data is still something that needs development in small economies and regions like Latin America, the volume of patterns are available in an urban area or a metropolitan region, but are scarcer in forecast traffic in rural areas. With third party companies, it’s easier to create synergies and economies of scale with big data information. Otherwise, the individual in-house use of big data is not cost-effective.


people may have access to data but don’t know how to give them direction in terms of their desired outcomes, strategic and day-to-day orientations. In other words, managers have massive amounts of information available, but don’t know what to do with it.
Data and analytics are transforming many industries and businesses, and logistics is not an exception. The complex and dynamic nature of this sector, as well as the intricate structure of the supply chain, make logistics a perfect use case for data. Valuable insights obtained through data leveraging enable the industry players to optimise routing, to streamline factory functions, and to give transparency to the entire supply chain, for the benefit of both logistics and shipping companies alike.98% of third-party logistics companies believe that data analytics is critical to making intelligent decisions. 71% of them believe that big data improves quality and performance.

Conclusion :

Big data analytics in the supply chain can dramatically improve operations and maximise ROI. It becomes a lot easier to predict and work on customer requirements and hence enhances customer satisfaction and loyalty.
The increasing use of data and analytics can improve logistics efficiency and cost-effectiveness by providing insights into supply chain operations, identifying inefficiencies, optimising routes and inventory management, and improving customer service through better demand forecasting and real-time tracking.

  • LogixGrid can help you to achieve below ROI.

  • Improve Business operations by 80%

  • Decrease turnaround time by 30%

  • Ensure 100% automated operations

  • Decrease overall delays by 30%

  • Ensure 100% SLA adherence

Real-time tracking and visibility key to run a successful 3PL business

Real time tracking and visibility key to run a successful 3PL business 1

Yes, successful 3PL (third-party logistics) operations require real-time tracking and visibility. This enables more effective supply chain management and efficient coordination between the 3PL supplier and its clients. Additionally, it aids in cost-savings and guarantees prompt delivery of goods, increasing customer satisfaction. A corporation that contracts out logistics services on behalf of other companies is known as a 3PL or third-party logistics provider. 3PLs provide a range of services, including distribution, warehousing, and transportation. Additionally, they can offer value-added services including order completion, packing, and assembly. Best Practices for Providers of Third-Party Logistics (3PLs) Although there isn’t a single 3PL best practice that applies to all of them, there are certain common ones that can help 3PLs operate more effectively and expand their businesses.

1. Establish a Stable Technology Infrastructure :

Any logistics supplier must have a solid technology foundation. 3PLs ought to spend money on dependable, scalable software solutions that may expand along with their operations. Robotics and automation technology can also help to enhance warehouse operations, but they should only be used if they are expected to increase ROI. Consider utilising a warehouse management system (WMS) like Logix WMS to make the most of 3PL technology. Many of your 3PL processes, including order picking, shipping, and put-away, can be automated with the use of a WMS. You may manage your 3PL business from a single central platform and get real-time inventory visibility.

2. Establish trusting connections with clients and suppliers :

Any 3PL’s customers and suppliers are its lifeblood. Building solid ties with both is crucial. Providing excellent customer service is crucial for retaining current clients and luring in new ones. Make sure your consumers understand the pricing and 3PL services you offer. Inform them up front of any potential dangers or difficulties that could affect their supply chain. Being open and honest will help you gain people’s trust and minimise unpleasant shocks. Customer satisfaction will rise and customer connection will be strengthened as a result. Additionally, you need to establish trusting relationships with your trading partners and suppliers. Improved communication, cheaper costs, and greater quality control can result from having good supplier connections.

3. Emphasise ongoing development :

As the 3PL sector undergoes rapid change, it’s critical to stay on top of developments. You should always be on the lookout for ways to make your operations and services as a 3PL service provider better. This may entail making investments in new technologies, broadening the scope of your service offerings, and enhancing both the effectiveness and customer experience of your business.

Real-Time Visibility (RTV) has become an increasingly important initiative for supply chain leaders as the technology to make it possible becomes more readily accessible.

1. Tracking Improve Safety and Minimise Fuel Cost :

The safety of your drivers is no doubt a top priority for your organisation. This starts with having well-maintained vehicles but should also focus on monitoring driver behaviour and ensuring that safe driving practices are being followed. Most fleet tracking providers offer digital maintenance programs that enable you to create maintenance schedules with automatic alerting based on odometer readings or scheduled maintenance. Unauthorised vehicle use can also significantly increase fuel costs. A GPS tracking system can alert management to unauthorised use via time-of-use restrictions and calendar templates.

2. Reduce risks and costs :

Supply chain visibility will ensure there are no interruptions in your processes. You’ll be able to quickly respond to any needs throughout the chain, such as redirection of supply. Increased visibility will ensure you can re-evaluate areas of inefficiency and in turn reduce risks such as damaged products and mistakes.

3. Improved Performance :

Enhanced supply chain visibility will help you to better track your performance expectations and estimate future demands, ensuring you can meet your future goals. Optimising your performance will open communication among those throughout the supply chain. As well, supply chain visibility will ensure you’re keeping pace with changes in regulations around transportation. Setting measurable goals and monitoring your progress over time are two ways to promote ongoing business process improvement. This will assist you in tracking your progress toward your objectives and identifying areas of your 3PL firm that require development. Third-party logistics companies can perform better and expand their business by adhering to these best practices. 3PLs should constantly be searching for ways to streamline their processes and give their clients additional value. In light of this, ask yourself if your 3PL company is making every effort to be prosperous. If not, make the required adjustments and begin using these best practices right away.


By adhering to these 3PL best practices, you can be sure that you’re doing everything possible to improve performance and expand your company. Just keep in mind to use technology, enhance cooperation and communication, streamline your operations, prioritise customer service, and keep up with market developments. You’ll be well on your way to 3PL if you follow these steps. Be sure to have a look at Logix WMS if you’re seeking for a warehouse management system to assist you in optimising your 3PL operation. You can use our software to automate 3PL procedures and get real-time inventory insight. Request a free sample or discover more by getting in touch with us right away.

Benefits of Logix WMS:

  • Get access to customer portal

  • Barcode generation and scanning

  • Access anywhere even on mobile

  • Sales or Outbound orders automated

  • Multiple carrier label printing

  • Carrier Integration for waybill

  • Increase efficiency and accuracy

The Benefits of Implementing a Logistics Automation System

The Benefits of Implementing a Logistics Automation System

In the Materialistic world, Business processes require fully automated functions to run business smoothly. Automation of logistics is the process of increasing the effectiveness of logistical activities, including procurement, production, inventory management, distribution, customer service, and recovery, with the help of technology such as machinery and software.
Automation may improve the efficiency and synergies of the entire supply chain, from order placement and package processing in warehouses through automated transit and shipment, as well as tracking and delivering the materials.


1. Increased Efficiency and Decrease in Expensive Errors:

Logistics automation enhances efficiency and effectiveness thus accuracy also increases. Automation enables firms to fully integrate inventory management into their ERP system and other forms of automatic storage are all features that help cut down on important errors.
There is a considerably higher chance of error while manually entering several data from the accessible documents. These all have a lot of detrimental financial effects. These include maintaining unreasonably high levels of availability, ineffective methods for planning and coordinating, future fines for paperwork errors, etc.

2. Improved Customer Support:

The business world is a never-ending battle. But even individuals you have worked closely with for a long time tend to “cheat” you if someone else offers them shipping conditions that are twice as favourable. How would you feel if you began to lose important individuals? If there is a problem with the speed, price, or service quality, you should notice it right away. logistics automation enhances customer service. It improves shipment control while handling the supply chain. The software’s ability to fully track the movement of items from one location to another, as well as to automatically account for transactions, track them, and pay invoices, is one of its most significant benefits.

3. Gaining Access to Data and Real-time Monitoring of Freight Movements:

A major benefit is being able to manage loads at any time and combine the data needed for analysis. If you invest to develop logistical automation, it will accomplish that. Any summary aids in critical business decision-making provides a snapshot of potential company prospects in the future, and, when appropriate, offers suggestions for improvement. The importance of having quick access to this important data cannot be understated.
Imagine the relief business executives would feel if they could make a significantly better choice with just one click. A lot of careless actions and potential business losses can be avoided by swiftly and simply interpreting the information. Keep abreast of all developments at all operational, administrative, and management levels.

4. Effective route planning:

It’s imperative to meet customers’ demands for high-quality service while meeting deadlines and keeping costs as low as feasible. Customers frequently switch to competitors as a result of late deliveries, losses, broken products, and other poor delivery experiences.
Planning your routes strategically is essential for achieving the best possible operational, financial, and customer experiences. Altering procedures, regulations, and practices on a larger scale makes it easier to create and put into practice.

5. Cost Reduction:

The primary issue of businesses involved in transportation and freight transit is cost. However, ERP systems can be connected with logistical automation. It uses your address book to access addresses with automatic storage and fuel surcharge entry. There is no space for error while using such logistics software because the need for manually inputting the data is eliminated. Manual data entry carries a high risk of error, almost always a result of human error. These mistakes include incorrect data entry, which results in double shipping cost payment. However, the shipping software considerably lowers costs. It aids in the timely and effective delivery of the items to the client.

6. Flexible and Rapidness:

TMS eliminates the need for additional resources for managing transportation. Let us break the ice for you if you think you don’t require such logistics software: when the business expands, the company ships more freight. Using transportation software, you can effortlessly manage both current and potential customers. Additionally, it is simple to combine freight bills into a weekly invoice. No matter how many shipments there are at each site.

7. Real-Time Visibility and traceability:

Nowadays, supply chains and logistics must have real-time visibility. It describes logistical operations that follow and trace the movement of products and shipments from suppliers, manufacturers, warehouses, and hubs to the final consumer in real time.
Businesses are now able to plan, schedule, and keep an eye on every step of their logistics process thanks to real-time visibility in the supply chain, which is made possible by GPS-tracking and sophisticated software.
It gives supply officers real-time access to trackable data such as order receipts, raw material status, shipment information, regulatory data, and precise order status. Businesses can gain a competitive edge, increase efficiency, improve transparency and customer happiness, and cut transportation costs with better management of the various aspects of this complex process.

8. charts and statistics are used for real-time tracking:

The task of real-time tracking and visibility is made easier by statistics and graphs. Customers can follow the progress of their orders using graphs and charts. Data from the entire system will be included in automated graphs and charts.


Future business will depend heavily on growing automation. Our Logix platform’s benefits are expanding. All logistics solutions that speed up your company’s operations are included in logistics and are available on a single platform.
Talk to our specialists and use our numerous logistics solutions to run your business processes at 100% efficiency if you want to save costs, improve your services, and reduce costs related to transport and inventory. Streamlines all of your business operations with a single click.