5 Examples of How Big Data in Delivery Service Can Transform Logistic Industry

The logistic industry and, especially, delivery services, have had an extremely unenviable reputation over the years. So many packages were delayed. So many annoyed customers complained and cracked jokes about the sluggishness of delivery services worldwide. 

Meanwhile, only a few knew how many challenges such services face during their work and on the last mile in particular. Traffic jams, confusion on overloaded warehouses, and poor route planning are just a few of them.

However, when it seemed that the stigma wouldn't come out, Big Data came into play. Paired with special technologies and software, it brought many positive changes and transformed the logistic industry once and for all.

So what is big data, and why does it have such influence on logistics? let’s get to the heart of the matter and find out by the following points:

• The definition of Big Data & its major characteristics;
• The benefits of implementing Big Data in logistics;
• The impact Big Data has on the logistic industry.

Understanding Big Data

A little bit of backstory. Since the mid-20th century, with the beginning of the digital era, the information flow has been increasing. Then, by the end 1980s, after the invention of the Internet, it rose dramatically. In response to that, there came the term to describe the phenomenon - Big Data. Briefly, it stands for the information in huge amounts that are generated around the Web. 

Major Characteristics of Big Data

Basically, we can characterize big data by 4 V-words:

Volume

We can name the data big only when we speak about terabytes or more of it. Therefore, the size of the data packages you get is the first thing that defines big data. 

Velocity

This metric shows the speed of data generation. For example, only Google receives around 60000 search queries a second. Let alone the gigantic chunks of versatile data that the social media platforms produce.  

Variety

Also, big data has the dimension of variety. Generally, data falls into 3 main types: structured, unstructured, and semi-structured. Big data includes all the 3 types. Apart from it, the structured data consists of video & audio files, images, and texts. 

Validity

Last but not least are the qualitative characteristics of data. As the stream of information becomes wider, more garbage gets into it. Therefore, data processing becomes harder to do and requires more sophisticated techniques. This is a crucial factor for any business, not only within the logistics industry. 

Benefits of Implementing Big Data

The scope of application of big data lives up to its name. The proper analysis can bring much value to your business and allows you to:

Streamline Business Operations 

First of all, big data has the potential to make your business more effective. By examining major metrics and finding pain points, you can eliminate problems swiftly. Apart from problem-solving, you can employ big data for creating efficient business strategies. 

Usually, it’s hardly manageable without specialized technical and software tools. Nowadays, BI tools like Power BI dashboards are a must in any respectable enterprise. They display vital performance data in real-time in the concise and digestible form of graphs, charts, etc. Combined with IoT, GPS, or other tools, it showcases incomes, and even the health state of your employees, if you would want it.

Optimize Costs

Big data analysis helps businesses to reduce their expenses. For instance, using the analytical report, you can track what kind of product gets returned more frequently. Knowing this, you can modify or replace your product to save your money on returns.

Set Competitive Prices

Taking into account your product or service prices on the market is essential for your own price formation. Big data analysis can assist you with it big time. Reasonable and competitive prices always attract buyers' attention. Then, as your brand gains awareness, you can make prices higher. 

Stay Aware of Trends

Big data analytical tools can collect valuable facts from social media and derive valuable insights from them. It goes without saying that people’s sentiments are the core of any successful marketing campaign. It can show what the consumers want from the industry more than anything. Therefore, who gets to know them and reacts faster than others wins the race for the customer. 

Avoid Risks or Unexpected Events

Additionally, big data is useful in risk management. Collecting data on similar projects or businesses, their success and failure stories, you make your way to the long-cherished goals easier. Statistics that you can get from such information is like a playthrough. You know where you need to change direction or acquire certain tools to eliminate booby traps and collect more coins. Eventually, having a map of the playground gives you confidence and unprecedented advantages over your predecessors.  

Improve Customer Relations

This point is also connected with social media and insights from them. With the special tools for big data transportation and analysis, you can increase your customer satisfaction like never before. Those software and frameworks can deliver analytics based on customer comments, interest points, or other available sources. Again, being aware of the customer’s problems or wishes is a key to building strong and long-lasting relationships with them. And a small reminder - business managers measure customer loyalty in currencies.  

Impact of Big Data on the Logistic Industry

Alright, as all the pros of big data are on the table, there comes the question: what happens when you combine the benefits of big data and delivery service? Right, you get a stunningly successful delivery service. The formula Big Data + Delivery Service = High-flier works due to the great impact of big data analysis across multiple domains. Here are some prominent examples of it. 

Exceptional Customer Experience

Customer relations are echoed in almost any logistic field where you apply big data. In the first place, a broad perspective of the customer preferences can help you target customers and adjust to them. Further, by analyzing the information customers share in the public domain, you have the opportunity to optimize your delivery schedule. For example, you can analyze the info from your TA’s social media. It will help you define when they are usually at home or out jogging. Beyond that, it works well with service personalization. A thorough analysis of sentiments and support queries allows you to express your dedication. 

Last-Mile Delivery Enhancement

The last-mile stage of delivery showed itself as the most problematic one. Traffic jams, lack of parking space, addressee absence are some of them. Fortunately, tools of big data supply solutions for most of these problems. The right software connected to GPS and IoT sensors finds parking places and optimal routes for your vehicles. Thereby, you can reduce gas expenses and deliver a product timely.

Regarding customers, you can create an app or other tools of real-time tracking that will notify the addressee about the incoming delivery. 

Improved Safety of the Goods

Every delivery service must preserve sensitive goods from any harm. Their prestige and, therefore, survival is at stake. Naturally, the impact of big data didn’t get around this challenge either.

The information on the past safe delivery failures, their causes, and behavioral patterns of employees allow you to avoid such issues in the future. You can find out that you need special equipment or better organization of the staff. Anyway, with big data in front of you, you will spot the problem in no time.

Better Warehouse Management

Big data tools in logistics transform warehouse management, making it more effective and convenient. Good old ERP systems are packing their APIs and retiring at ease because new tools offer enormous benefits both for managers and customers.

From the managers’ side, big data tools provide the info that can be helpful in: 

• Delivery scheduling

 Having a clear picture of warehouse load managers can plan their delivery more effectively.

• Cost reduction

Route planning, advanced space control, and well-structured products streamline warehouse management, saving time & money.

• Goods preservation

With control over the warehouse space and awareness of incoming goods, managers are able to find suitable dispatching areas. Besides, it makes inventory management much easier.

As for customers, it gives them the ability to see the availability of your product when they meet your website. In addition, they can get more details on the shipment of the product and the manufacturing process. 

More Transparency

Big data tools, connected with the particular GPS devices in each delivery vehicle, allow bringing more transparency into the shipment process. It is an essential part of the B2B type of relationship. That is so because businesses can bear significant financial losses as a result of delivery delays. However, when your partner can track logistic delivery in real-time, he/she will know if there are any obstacles instantly. Thus, their quick reaction will help them save money and you a business partner. 

Summary

To wrap the whole message up, let’s go through the main points again.

Big data is the phenomenon that reflects the enormous stream of information that people generate over a period of time. It changes multiple spheres of human activity, including delivery services and supply chains.  Resourceful humans never stop inventing technologies and software to handle big data and get maximum value from it. Thus, as the number of such technologies rises, the logistic transformation unfolds in the following areas:

• Customer relations,
• Warehouse management,
• Reliability & Transparency,
• Seamless last-mile delivery,
• Safety of delivered goods.

Inevitably, the positive change in the listed spheres leads to financial success and business expansion. Therefore, it is better to start implementing big data tools in your logistic business at an early date. And who knows, maybe once you will leave your footprint in the history of logistic industry development.