CPG transportation can seem straightforward, but many factors must work together for operations to succeed. A misstep upstream could create ripple effects that sabotage entire downstream operations. As a result, stakeholders are increasingly relying on transportation analytics to harvest and leverage actionable insights, helping streamline their logistics operations.
For example, traffic is a problem nationwide, especially in major logistics hubs. Truck drivers spend 20 to 30% of their commutes idling in traffic, translating to an extra two to three hours per move. This can frustrate drivers, causing them to drive perhaps too fast, besides delaying deliveries and the supply chain process. It is especially impactful on temperature- and time-sensitive goods, like fresh produce and CPG products.
Transportation analytics provide actionable insights that give shippers and retailers more control over their decision-making process. In this article, we explain why transportation analytics and their different applications are crucial to logistics efficiency.
Transportation is core to any supply chain, and because of that, it plays a significant role in its success. Through transportation analytics, shippers can find actionable insights to optimize the process. Here are some of those:
Through transportation analytics, shippers can pinpoint routing problems and inefficiencies, identify areas for improvement in load utilization, and predict potential disruptions. If optimized, these factors can significantly lower fuel costs, reduce driver idle time, and minimize the risk of delays. Ultimately, this enhances the shipper’s ability to save money on transportation costs.
Customers demand on-time deliveries, which are crucial to their satisfaction. Transportation analytics help shippers accurately predict delivery times, proactively address potential delays, and provide customers with real-time updates on the status of their shipments. This enhances transparency and reliability, enabling shippers to build trust and strengthen customer relationships.
Shippers in the CPG and beverage space can optimize routes, improve fleet management, and streamline transportation operations by analyzing data on factors like traffic patterns, weather conditions, and driver behavior. This way, shippers can ensure increased efficiency and throughput, better resource allocation, and improved overall productivity.
Transportation analytics give shippers valuable insights into their operations. This data-driven approach allows them to make informed decisions about everything from fleet size and equipment selection to route planning and carrier selection, ultimately leading to significant improvements in overall transportation performance.
Success in the freight world depends on efficiency and speed. However, given the complexities and complications plaguing modern supply chain operations, transportation analytics can help make shipping processes successful.
Here is how transportation analytics can be applied:
Shippers can accurately predict demand and make the necessary adjustments to ensure a seamless transportation process by analyzing historical shipping patterns, seasonal trends, and external factors like economic data. They can also better plan for scalability and infrastructure, including staffing, vehicle availability, and inventory needs.
Managing and training can be difficult for a number of reasons, such as long working hours and inconsistent schedules. However, shippers can mitigate that through telematics data and driver feedback. These allow them to assess driving behaviors such as speeding, harsh braking, and idle times. Shippers can train drivers and improve safety and fuel efficiency with the information.
Transportation analytics begin with accurate and relevant data. Shippers can gather information from multiple sources, including GPS tracking, fleet telematics, shipment records, and customer feedback. The key is to ensure the data is clean, consistent, and stored in a way that facilitates analysis. Regular audits help maintain data quality and highlight areas for improvement.
Analytics tools can highlight recurring issues, such as delayed pickups, long loading times, or missed delivery windows. By pinpointing these problems, shippers can address root causes and streamline their workflows. Transportation analytics also empower shippers to develop contingency plans by measuring risk factors, such as supplier delays or geopolitical disruptions. This reduces the impact of unforeseen events and ensures consistent operations.
Zengistics was founded on the belief that our collaborative technology platform can bring large-scale efficiency through collaboration and tech enablement for the CPG logistics industry. Our solutions allow for effective transportation analytics that enhance the ability of shippers to streamline their freight operations solutions and access end-to-end solutions, complete transparency throughout the entire supply chain, and enhanced connectivity via our established network or partners. We can do the same for you. Contact us today.
Operating on the world’s first collaborative logistics platform, Zengistics is a technology company that executes freight.