Business intelligence in logistics
Data-driven decisions for efficient processes
Due to the globalization of markets and the dynamic changes along the value chain, companies in the transport and logistics sector, as well as companies that operate their own logistics, are constantly facing new challenges. The requirements for logistics processes are becoming increasingly complex, while at the same time everything revolves around optimizing complex supply chains, reducing costs and increasing customer satisfaction. It is therefore almost impossible for such companies to avoid digitalization if they want to use and evaluate their data in a meaningful way. With all these challenges, a business intelligence solution can help to make the best data-based decisions and thus improve the efficiency of logistics operations.
The importance of BI in logistics
Many logistics service providers use tools such as Microsoft Excel to manage and control their company. However, if the transport and logistics chains become very complex, too much data is generated in numerous different source systems. This makes it difficult to collect and evaluate this data in such software. In logistics, the information can come from transportation systems, warehouse management software, customer relationship management (CRM) and financial systems. The most important data sources are
- Transport Management Systems (TMS): These systems provide data on routes, delivery times and vehicle utilization, which are crucial for optimizing transport processes.
- Warehouse Management Systems (WMS): Insights into stock levels, stock movements and storage location utilization can be found in a WMS. This data can be used to make warehousing more efficient.
- Enterprise Resource Planning (ERP): ERP solutions offer all-encompassing data for planning and controlling logistics processes.
Business intelligence solutions integrate data from all these source systems in a data warehouse and process it so that it can then be easily analyzed. This makes it easy to monitor critical performance indicators (KPIs) such as vehicle and warehouse capacity utilization, on-time deliveries, lead times and transport costs. In this way, logistics managers can react quickly to deviations and take proactive measures. At the same time, BI solutions can be used as an early warning system so that, for example, they automatically send messages when previously defined threshold values are reached, such as in the event of an expected vehicle shortage or delays. Such solutions use real-time data for this purpose.
BI systems therefore support logistics companies in data-based decision-making and provide a quick overview of all decision-relevant information with practical dashboards, e.g:
- Utilization of the vehicle fleet
- Punctuality of deliveries
- Routes
- CO2 emissions
- Costs and profit
- Customers
- Transport volume
- Storage capacities
- Employees and other resources
Application of BI software in logistics
- Complexity of supply chains
Challenge: Probably the biggest challenge in logistics is optimizing the supply chain. Global supply chains are often highly complex and therefore prone to disruptions. At the same time, it is important to act as economically as possible so that existing transport or storage space is used optimally.
BI solution: BI systems can analyze all aspects of the supply chain and the associated risks. For example, transport volumes, storage capacities, the vehicle fleet or supplier performance can be visualized in a way that is easy to understand. This allows route planning and stock levels to be optimized. At the same time, BI solutions can identify geopolitical factors or market trends at an early stage and thus help to predict peaks in demand, allowing potential bottlenecks to be identified. - Cost pressure and increased efficiency
Challenge: Logistics companies face global competition and are therefore under constant pressure to reduce their costs and increase efficiency at the same time.
BI solution: BI software can help to uncover potential savings through detailed cost and process analyses. Optimization of the supply chain and efficient use of available resources also help to reduce costs. - Customer requirements and service level agreements
Challenge: Customers expect ever shorter delivery times and higher service quality.
BI solution: BI systems continuously monitor compliance with service level agreements and provide detailed performance analyses. This makes it possible to react proactively to potential service deficiencies and increase customer satisfaction. - Flexibility and adaptability
Challenge: The logistics market is highly dynamic and requires rapid adaptation to changing conditions.
BI solution: Self-service BI tools enable business users to carry out their own analyses and react to new market requirements without in-depth IT knowledge. This is particularly important when decisions need to be made quickly.
Advantages of BI solutions in logistics
- Holistic insights into operational processes
- Simple identification of inefficiencies, trends or patterns
- Optimization of supply chain, warehousing and other processes
- Sound forecasts
- Planning reliability
- Cost transparency
Conclusion
Business intelligence has become an indispensable tool for logistics companies. By using BI solutions, companies can optimize their processes and reduce costs at the same time in order to remain globally competitive. The ability to make data-based decisions in real time will become even more important in the future to be successful in the fast-moving logistics industry.
With intuitive dashboards, extensive analysis functions and the ability to monitor critical KPIs in real time, myPARM BIact helps logistics companies to make the best use of their data and make informed decisions. The integrated task management and communication functions also help to communicate decisions made directly to employees and manage their implementation.
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