Freight Analytics can help any medium or large business make important decisions when analyzing freight costs. Shipping costs happen to businesses on a 24 hr basis. This data is continuously flowing in from the carriers, managers, authorities, and other sources. Without a planned way of analyzing this data and costs can make a business less competitive. With proper cost analysis, this data can make a huge differences in costs in shipping.
Analytics is the science of examining raw data with the purposes of making conclusions from that data. When applied to freight, analytics involves looking at the data that is coming from the people, equipment, and processes in the logistics chain can help with managing costs.
The advantages of proper freight analytics cannot be overstated. The ability to make informed decisions can mean the delay of freight or arrival on time. Many freight businesses will often confuse fleet management for freight analytics, but the two are entirely different. Fleet management data is just one source of data that will be used in freight analytics.
There are different ways of doing freight analytics;
Descriptive freight analytics
This is examining what is happening on the ground. What is broken down? Who is on what route? What fines are being paid at what port? These are examples of real-time questions that freight managers have to grapple with daily.
Descriptive analytics will involve an element of Business Intelligence (BI) that gives the manager real-time visibility on different scenarios on the ground. It a truck misses picking up a shipment, is there any other truck that can pick up the shipment and deliver on time as agreed?
Predictive freight analytics
These are analytics used to map out different scenarios that could occur in the future. This is by using internal and external data to make statistical computations. This allows for more accurate strategizing.
Predictive analytics, for example, could be looking at the events that will be taking place along a certain route and determining the traffic flow, which can then be used to draw up routing patterns.
Prescriptive freight analytics
Freight companies always look for ways to improve efficiency in operations to cut down on costs and deliver faster. Prescriptive analytics are used to optimize the way of doing things. This takes data in the whole supply chain and examining it using mathematical analysis. For example, a network of routes can be mapped out depending on the number of trucks, warehouses, number of drivers and so on, to improve delivery times by 10%.
Freight analytics can help save and improve the efficiency of your logistics. This cannot be ignored.
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