Posts Tagged “analytics”
By Michael Patrick ALC Corp.
When thinking about the future of logistics, especially 3rd Party Logistics, I always stop and consider how analytics plays a role. Well, truth be told, they play a very large and important role in the success of the organization. Analytics help to mitigate risk, direct the need for forecasting accuracy, and drive cost efficiencies. At the end of the day all these things are important, but the biggest reason logistics companies use analytics is to meet ever-evolving customer expectations, underscoring the customer-centric approach of these companies.
Forecasting is a really hot topic in the logistics industry. Different types of organizations use all kinds of forecasting. Manufacturers use demand forecasts to set production schedules and manage inbound raw materials. This helps with routing guides and warehousing. “Through data analytics, logistics companies can identify and mitigate potential risks in the supply chain, such as disruption, delays and quality issues.” There is also a need for volume forecasts for RFPs (Request for Pricing) and pricing decisions. It seems like everyone in logistics wants some type of pricing forecast. Suppliers want forecast pricing to gauge budget levels, truckers want forecast pricing to help with asset placement, and third-party companies want forecast pricing to respond to RFPs and help indicate potential earning numbers.
With the increase in fraud in the logistics industry it is more important than ever to be on your toes when it comes to mitigating risk. Criminals are growing daily and are getting increasingly bold in their thirst to create havoc in the industry. They are using email addresses that closely resemble real company emails, cell phones that cannot be tracked, and teammates on the inside of suppliers to steal goods from warehouses and even steal entire trailers. When these trailers are found, they are empty, and the items are gone. They are targeting not just valuables like electronics but also loads of vacuum cleaners and clothing. These items are easily sold on the second-hand market. Analytics can be used to identify and utilize carriers with the appropriate level of insurance and vendors with good ratings.
Customers, suppliers, and logistics organizations will continue to rely on analytics to improve efficiencies, grow profits, and create forecasting to meet customers’ ever-changing expectations. With the transportation industry being a moving target, investing in in-house analytics is a great solution to streamline data and adapt to market trends.
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Michael Patrick started with the Allen Lund Company in January 2018 as a senior business analyst. He has over 25 years of third-party logistics and supply chain management experience. Patrick has a B.S. in Business Administration with an emphasis in Marketing from Winthrop University and a Masters in Business Administration from The Citadel.
michael.patrick@allenlund.com
By Michael Patrick, ALC Corp.
Transportation and analytics go together like peas and carrots. As technology continues on an upward trajectory with the implementation of artificial intelligence and machine learning, transportation companies will have to continue to adapt their environments to use this technology to their benefit. We currently use basic metrics to help our customers, managers, and brokers be as effective and efficient as possible. We combine our data with multiple data sources to get an overall market picture.
As a third-party transportation company, we use business intelligence and analytics in a multitude of areas. Market trends are used to help us bid spot market freight and rate prediction engines to help forecast rates on customer bids. Executives and managers use data and analytics to conduct customer, carrier, and employee reviews on a quarterly basis.
Customers and carriers benefit from Allen Lund Company conducting business reviews that show them not only trends in the overall marketplace, but also identify areas where they may reduce costs and thoroughly streamline their transportation. We use things like loads, customer spend, weight and pallet analysis, lane and cost analysis to create a great story for our customers and carriers.
One example comes to mind of ALC using data and analytics to help a customer reduce costs within their transportation department. We were asked to help this customer with a market analysis on their lane set. We ran the customers rates and market rates and showed them which areas to reach out to the incumbent carrier in order to adjust their rates to market levels. Some of these rates went up, and some went down. Overall, the customer felt like they not only got better rates, but also better service from their carrier. Win-win for everyone involved.
As technology continues to grow, we will have to stay ahead and evolve quickly in order to keep up with our customer and carrier demands. Allen Lund Company is committed to keeping up with the markets and to keep our customers, carriers, and employees up-to-date on all current market trends. The Business Intelligence team here at ALC will continue to push the envelope on what is possible with analytics.
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Michael Patrick is the Director of Business Intelligence and has been with Allen Lund Company since January 2018. He graduated from Winthrop University with a BS in Marketing in 1998 and earned his MBA from The Citadel in 2002.
michael.patrick@allenlund.com