New data insights will benefit all concerned parties
Both challenges can be overcome, and in so doing, organizations benefit. McKinsey pointed out that using predictive analytics can expand datasets beyond what is traditionally acquired on an enterprise resource planning or supply chain management system. These datasets provide new insights throughout the supply chain, from front-line operations to carrier delivery of the shipment.
Shippers and carriers will each use predictive analytics differently, of course, and each can benefit. Third party-logistics (3PL) providers are now able to help as well, bringing data insights from each party in the relationship to improve the overall structure for all. Carriers may be focused on data accumulated along routes (including competing rates along that route), operational data, and even maintenance-related data.
Apply resources to better plan future events
Shippers may be more concerned with data related to material costs and inventory build-up, unaware of how improved inventory flow could reduce transportation costs. Carriers could better price services if they had insight into a shipper’s specific needs, such as timing of shipments. Improving the timing of shipments could reduce both on-hand inventory costs and shipping rates, if only the parties had collective insight.
“Organizations can modify how and where they use resources to better prepare for future events,” explained a white paper from Research Optimus. “It creates a framework for connecting the dots between trends, patterns and associations in data to help businesses respond proactively to future developments.”