How Big Data Is Disrupting the Logistics Industry

Big Data has changed everything from baseball to transportation, putting the power in the hands of those who know how to analyze and break down metrics.

Big Data has been especially crucial in the disruption of the logistics industry, allowing companies such as UPS and DHL to move packages faster and keep customers happy. It’s easy to see just how Big Data and the logistics industry were made for each other.

From the consumer side, it’s something you might not notice right away, but it is definitely happening. Routes are being optimized, based on years upon years of transportation data available.

Here are few ways Big Data has already disrupted the $1.1 trillion logistics industry.

With the rise of Big Data, the logistics industry made the leap to being more of an information-driven vertical.

Instead of relying on outdated processes, today’s companies rely on hard data to make decisions. Companies all over the U.S. are stepping up and making significant plans in Big Data, as DHL notes that 60 percent of supply chain companies are investing in analytics platforms in the next five years.

Every day, data about weather conditions, origin, weight, height, destination and content is tracked. Instead of simply stockpiling that information, smart companies are making use of it to become more efficient.

This quest for greater logistics knowledge is an industry-wide trend. A recent study by the Council of Supply Chain Management Professionals shows that 98 percent of third-party logistics firms and 93 percent of shippers feel that data-driven decision making is key to supply chain activities. Additionally, 86 percent of third-party logistics firms and 81 percent of shippers expect analytics to become a core tenet of supply chain organizations.

When you have this much data, companies can anticipate busy and slow periods, as well as when they’d need to restock key supplies. This makes for a much more well-oiled machine, pleasing their customers with consistent on-time performance.

Big Data has also generated significant insight into the end-consumer base.