Estimated reading time: 3 minutes, 12 seconds

Big Data is Critical to the Transportation Industry Featured

Big Data is Critical to the Transportation Industry Shay

Big data is expected to be a force to reckon with in the future in the transport and logistics sector. But the benefits it promises to offer are already being felt. Before going deeper into potential uses of this technology in the future, one has to know areas in which it is being leveraged now. As the demand for transportation and freight services rise, companies are forced to embrace new opportunities, including those provided by big data.

The companies in the transport sector collect data from various sources within a specific time. This data is then analyzed and used to identify patterns that will help decision-making in the company. This is highly beneficial to logistics and transportation management as it helps them enhance their operations and analyze customer behavior, among others. The entry of big data into the transport and logistics sector has led to many positive changes. For instance, it has increased the flexibility and efficiency of operations, that has, in turn, reduced the consumption of fuel. It has also improved the experiences of the customer. Big data is also promising to improve the safety of packages and products during transportation.

Transport and logistics companies have vehicle fleets that are fitted with data sensors. The sensors provide real-time information on the performance of these vehicles. These sensors give accurate information on various aspects of the vehicles, including the travel speeds of the vehicles, time that they spend idle, and the time that each vehicle spends moving goods on transit to specific destinations. While on transit, the sensors fitted into the vehicles also monitor the health of vehicle engines. The information collected allows companies to enforce maintenance measures in time or prepare to address specific errors. Sensors also provide information about traffic jams, weather conditions, and the state of the road. It can also be capitalized to maintain the safety of packages.

The reduction in operational costs is the target of every company. Although shipping routes play a critical role in efficiency, big data in the transport and logistics sector can have an overall impact on core operations such as warehousing, procurement, and production. Without adequate supply to address the demand, consumers will be forced to shop somewhere else. This may lead to a loss for a company. This forces companies to embrace new methods such as big data to increase knowledge on the needs of the customer and offer solutions.

The shipping process is known to have many errors, some of that can cost companies customers and considerable revenues altogether. Big data is instrumental in identifying the areas with errors both in delivery and pickup and correcting them accordingly. Although expenses due to these errors appear little, they would become high if these errors occur regularly. Since errors can lead to massive losses and tarnishing of the name of a company, big data can be used to analyze potential areas that errors originate from, and corrective actions are undertaken.

Having the capacity to foresee the future of business is the ultimate power of any organization. For years, that was impossible. This was until predictive analytics came into existence. Predictive analytics allows organizations to know the trends and adjust output and operations based on the trends. Unlike back in the past, where organizations made decisions and predictions based on historical data, the advancement of technology, including the proliferation of big data, has allowed easy prediction of the future due to real-time insights offered that meets the needs and expectations of the industry. Thus, forecasts can be modified instantly, ensuring that resources are allocated based on need across the organization.

In a nutshell, big data offers transparency never seen before while also offering new options that positively impact the supply chain and transport industries. The technology is making what was once seen as impossible possible as it improves the relationship between companies and customers.

Read 126 times
Rate this item
(0 votes)
Scott Koegler

Scott Koegler is Executive Editor for Big Data & Analytics Tech Brief

scottkoegler.me/

Visit other PMG Sites:

click me
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.