Within the supply chain,bigdata lies at thecenterof every process, asset movement and decision made.Big data is often thought about in four parts, otherwise known as the 4 V’s: volume, variety, veracity and velocity.Aswe coveredin ourlastblog, when your organization successfully addresses the challenges of working with datain the supply chain, you will be able to unlock its full potential.
In the world of logistics service providers (LSPs), data is being created every minute—from an order first being placed, an unexpected delay, or a customer asking a question about the location of their shipment.For a logistics manager,understandingand utilizingbig data can either be the path to their organization’s success or stand in the way of it.
How Data Addresses the Concerns of a Logistics Manager
Logistics managers are tasked with heading overall operations within theirsupply chain, ensuring that all partners and processes areworkingoptimally.To do thiseffectively, theyneed insights into theiroperations and timely responses toarising issues and market trends.In this week’sGuide to a Data-Driven Supply Chain, learn how the 4 V’s of data can empower your logistics organization.
A. HighVolumesof Data
The first V of data isvolume,the amount of data that your organization has access to or possesses.In order to arrive at insights through technologies like artificial intelligence and machine learning, you need high volumes of data.Essentially, the more data you have, the more meaningful your insightswill be.
Within a logisticsorganization, data-drivendecisionsare key, as data can help you to makeknowledgeabledecisions and implement acost-effectivesupply chain.One examplein whichdatacan be strategically utilizedis inthe process forselecting carriers. Having keydata points like service levels by lane, tender acceptance rates, accessorial fees and other freight costswill help your organization choose the best priced andmost timeefficientcarrier for your shipment.
B. Variety of Data
AnotherV of data is variety,or different types of datasets.Introubleshooting when issues ariseor markets changeduring shipments,a wide variety of data will empower logistics managers to bestrespond.For instance, during holiday seasons, data from previous yearssurrounding number of orders placed,busiest order dates, most popular items and morecan informlogistics managers for how to best prepare fortheinflux.This information will empower logistics manager toadjustand scaleoperationsaccordinglyfor the holiday seasons, allowingthemtohaveconsistency in serviceandcontinue to providevaluefor theircustomers.
C. Veracityfor Your Data
The next V stands for veracity of data,or the trustworthinessof the data you gather.If the data that your supply chain organizationgathersis untrustworthy, thenyou will be unable to relay accurateinformationto your customers.As competitiongreatlyincreases in the world of logistics,providinghigh levels of customer service is all the more important.A key componentofthisfor a logistics manager is the ability torelayinformation regardingaccurate real-time tracking of shipmentstocustomers. Withreliable dataat hand, logistics managers will be able to confidentlynotify customers of expected delivery dates andunexpected delays.
D. Data Velocity
The last V of data is velocity,whichrefers to the speed with which your data is processed. Similar, to the topic of latency in data that we discussed last week, data is rendered useless if not received in a timely manner. In order to meet your customer’s needs for real-time data forshipping and delivery, the data needs to be quickly processed.Additionally,when logistics managersreceive data in a timelymanner,they canbetter prepare when unexpected delays arise.Oneexample, aweather alertfor amovingstormcan helpyouanticipatepotential delays in delivery to certain locations, initiate earlier communication with customers andprepare potential disaster plans.
Follow along on ourseries about a data-driven supply chain by checking out ourpastblog ondata challengesand reading our next onunexpectedsources of data.
