Big data is the secret


Big data is a must when we talk about logistics. Companies require better and faster shipments with increased transparency in each step of the process. Customers constantly go digital and demand more speed and responsiveness.

Digital transactions generate massive amounts of data in real-time and managing it will allow companies to make data-driven decisions, faster. The big data market in logistics is growing at a fast pace, it was valued at 3.55 billion dollars in 2020 and it is expected to reach 9.28 billion in 2026.

Having the right big data management software is paramount for companies looking to find areas to optimize, choosing it can be challenging but it is worth putting in the work to do it. Implementing the right big data strategy helps track millions of shipments while informing about the origin and destination, weight, content, size, and location of each one.

But big data is not only about the merchandise, and its components, but about logistics. A lot of data is generated around logistics, for example, transportation companies get data about traffic, weather, vehicle diagnostics, driving patterns, location of the transport units, and this increases the transparency of the process.

Some aspects in which big data benefits logistics are:

  1. Efficiency of the last mile shipping. The last mile represents roughly 28% of the total cost of the shipping and that is too much. This happens because at some locations parking is difficult and the messenger must walk a lot and climb stairs, and if it is a package that needs a signature and people aren’t at home, the delivery service must return later.

Also, delivery persons are responsible for the integrity of the package. It is very difficult to track the last mile. Big data is aiming to provide solutions for these challenges. For example, using cell phones to register the data of the package from when the delivery person gets off the truck to when they handle the merchandise to the customer.

  1. Optimization of routes. Knowing the most effective route, it is possible to cut costs by saving resources.
  2. Optimization of warehouse operations. This is already happening at amazon warehouses where KIVA robots grab the merchandise from the shelves and in some places, you can get your shipment in 30 minutes using a drone.
  3. Transport of perishables. Getting perishables to their destination in good shape is a challenge, using big data, drivers can know in real-time what is the best route to follow to ensure the quality of the goods.

Big Data is the future, but it has arrived, as many corporations implement it, many more must do it too if they want to remain competitive.

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