Utilize Descriptive Analysis To Gain That Competitive Edge

The rise of Big Data has opened doors for supply chain managers everywhere. Whether a company manages their fulfillment and shipping internally or they outsource to a third-party logistics company (3PL), descriptive analytics matters. Third-party logistics companies should be utilizing descriptive analytics to deliver streamlined supply chain management to their customers and maintain a competitive edge.

How Using Descriptive Analytics to Gain a Competitive Edge

3PLs deliver a great need to the supply chain industry, allowing their customers to focus on what they do best – creating products. Today it is more important than ever for 3PLs to stop competing on price and start offering additional benefits to customers. Using descriptive analytics and big data could drastically improve the supply chain. When 3PLs utilize descriptive analytics, they experience these five benefits:

1. Know what you need before you need it.
   Descriptive analytics allows you to predict future needs by forecasting short-term and long-term resource requirements. By using historical data, a descriptive analysis can identify when you need extra staff, more materials, and even a larger location to manage incoming inventory. Having these predictions ahead of time gives you ample time to prepare before you find your operations struggling to keep up.
2. Meet customer expectations.
   Understanding what is happening in real-time is a big help in the supply chain industry. Descriptive analytics tells managers what is pending, what may be coming, and what has finished being processed for the day. Having access to this information in real-time makes it easier to manage and change priorities throughout the day.
3. Predict cost more efficiently.
   A common struggle amongst 3PLs is that they don’t know what to charge and can end up losing money from not charging enough or upsetting clients by charging more than initially proposed. Descriptive analytics can be used to compare one client’s needs to a similar client, and better predicts costs, so the 3PL isn’t locked into a contract where they continue to lose money.
4. Identify and implement changes quickly.
   When it comes to supply chain management, it is essential that orders be fulfilled and shipped quickly. Descriptive analytics tracks the existing inventory supply and can automatically detect if there is a potential shortage before it occurs. This allows the 3PL to notify their customer and request additional inventory to avoid shipping delays.
5. Establish stronger relationships with clients.
   Customer relationships are no longer just about financial transactions. To be successful, any business needs to establish and build strong relationships with customers. When a 3PL uses descriptive analytics they are not only helping themselves; they are also making their clients’ operations stronger. By predicting shortages ahead of time, being able to quickly keep up with an influx in demand, and offering transparent billing, customers have a greater trust in their 3PL which leads to long-term loyalty.

If you are looking for a 3PL to help with shipping and fulfillment for your business, contact Econo-Courier for additional information on our services today.