Technology and Data Analytics: Redefining the Customer Experience in the Logistics Sector

Insights collated through data enable the logistics players to optimize routing, streamline coordination with the vehicle drivers, and provide transparency to the customer to ensure timely last-mile delivery.
Technology and Data Analytics: Redefining the Customer Experience in the Logistics Sector

As the world undergoes a change around us, traditional methods of doing business are making ways for tech-oriented methods for faster solutions, less paperwork, and better results. Data and analytics have transformed businesses, and logistics is not an exception. In fact, the dynamic nature of the transport sector makes it a perfect use case for data. 

Insights collated through data enable the logistics players to optimize routing, streamline coordination with the vehicle drivers, and provide transparency to the customer to ensure timely last-mile delivery. Advanced data analytics helps logistics companies anticipate slow and busy periods, potential future supply shortages, and accordingly the action points. Eventually, it helps in making smart decisions leading to better performance in terms of delivery speed and high-quality end-to-end client experience.

The existence of data in the logistics sector isn’t new, but the way it is used is evolving. The information-gathering exercise now finds multiple use cases and is it possible to leverage one single set of data in multiple actionable ways. The supply chain is one of the most critical aspects of every business’ success. It defines the customer experience which ultimately leads to the client’s stickiness. This has further emphasized the need for sourcing and analyzing the data from every junction of the supply chain. Identifying patterns and providing insight to every link of the supply chain is now critical and seen as vital steps forward.

Performance Management

The e-commerce platforms (and let us not forget that we are in the midst of an e-commerce boom) expect their logistics partners to deliver on time and ensure the last-mile step of the warehouse to the customer goes without a hitch.

Let us imagine a highly possible scenario:  the delivery vehicle is stuck in a traffic jam or it has developed a snag and it is not possible for the delivery person to reach the destined location on time. The customer, who is expecting the package at a promised date, is livid. Here, technology helps the logistics companies understand and monitor the performance of their workforce and rush in assistance. Data can also highlight when and which vehicles/ routes cause trouble, allowing transporters to react quickly and more so have a contingency plan laid out in advance. It is already a recognized fact that improving the efficiency and transparency within the whole supply chain is absolutely possible using technology and leveraging data algorithms.

Route Optimization

Finding the fastest possible path from point ‘A’ to point ‘B’ is called route optimization. The aim is to reduce the time taken to deliver a package and, improve the efficiency of the system which in turn will result in greater customer satisfaction. Right from the GPS to weather, fleet information, and the delivery schedules, all add to the system which is then used to predict the optimal route of delivery. It also brings cost-efficacy for the customers and better earning visibility for the truck drivers.

With route-optimization comes better visibility in the order-to-cycle processes. Logistics players provide customers with real-time visibility of their orders. Consumers expect shipments to be fast and easily trackable. Analyzing data to improve these operational aspects continuously leads to better quality partnerships and increased customer loyalty. This simple outcome of the data algorithm in terms of route optimization has made it possible to slot the deliveries to the accuracy of minutes today.

Productivity Improvement

Real-time data sharing helps businesses improve operational efficiency by capturing fluctuating customer demand, external factors, and the operations of the partners. It enhances transparency and helps all the stakeholders to streamline their processes, thereby improving the quality of operational processes, and the overall performance of the logistics business. Having accurate, efficient data integration into the processes also frees up additional space for the entry of new orders. Ultimately, this leads to more orders delivered timely, which further drives demand for the services within the supply chain. 

Digitalization of Operations

Advanced analytics is applied to optimize operations in pricing, routing, etc. As for the customer experience, the digital front end provides customers with a problem-free experience and improves internal operational visibility, automating previously manual processes. Automation of core internal business processes will simplify and ease up the labor-intensive logistics operations. 

Like most businesses, the logistics industry is going through several changes and is adapting to the new digital environment. The leverage of data through innovative technologies that allow companies to have better and new data, and use it in more robust applications, is speeding up the path to a more efficient and sustainable supply chain. 

Data analytics can dramatically improve supply chain and logistics operations and maximize ROI. It becomes a lot easier to predict and work on customer requirements and hence, ultimately enhancing customer satisfaction and loyalty.

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