3 major reasons why predictive analysis in transportation management has become the key.
Data is the key in many industries today and when it is in the transportation industry then it can become a key factor in contributing to the many operational decision making. There is a load of data that is created every second of the transportation that happens and hence this if used most productively can be a huge gain to your business. Today with the help of numerous technologies data can rightly be captured and be made available to supply chain personnel to help them make better decisions and plan strategies.
All realtime data that is captured can be recurrent data that must have happened in the past and forms a history of occurrences. This means such scenarios which can also be a service failure or any kind of issues must have already been stored and solutions or actions must have been taken. These can either be occurring on a regular scale and solutions have already been recorded that had worked well in the past.
Having captured all of this data would be great if you had the tool to foresee any occurrence in the future and take corrective measures even before it happens. This would be possible only if you had the power to predict it.
As technologies have been evolving and newer ones are hitting the market now and then, one of the most promising and today widely used one in the transportation industry is predictive analysis. We are no longer waiting for an issue to happen but rather foreseeing it beforehand based on the information we have been storing with the help of Artificial Intelligence and machine learning. Hence with the help of such tools, we can implement the best possible solution either manually or in an automated manner.
Let us understand 3 reasons for why predictive analysis today has become the key player in the successful transportation industry.
Accurate insights on market and operational trends:
Many factors affect and play a vital role in the transportation industry. One such element is pricing and shipping rates that many times seem to be volatile. Hence it becomes a bit of a challenge while purchasing transportation services particularly when many players raise competition. This is where predictive analysis comes handy as it not only gives you a historical analysis of the various prices and market trends of the past but also comes up with predictive ranges of real-time pricings. Hence businesses will be better placed in predicting pricings and thereby adjust their supply chain cost strategies and operations likewise.
Services failures can be predicted well in advance:
Service failures are something that needs to be dealt with in a very serious way and one has to ensure that it does not occur again. But the best and productive method would be to be able to predict such failure even before it happens. One cannot afford to have any service failure in particular when it pertains to a manufacturing facility as this can cause serious damages that can result in incurring heavy losses.
Predictive analysis helps in understanding and analyzing your historical data that includes all external factors that can affect your business operations. It can be either weather, lack of resources, held up in the supply chain, and any other elements that contribute to the entire transportation activity. The predictive analysis gives you real-time visibility into the status of any of your shipments and alerts your personnel if the shipment is going behind its schedule. Thereby you have the much-needed window to access the situation and make necessary adjustments or alternatives to correct it.
Better resource planning:
If there is one factor that is always a cause of concern for any transportation company then it is hiring human resources and allocating them when and where it’s needed the most. This is a major problem especially in the warehouse and distribution centers as one has to allocate the human resources as per the volume of inflow and outflow.
Predictive analysis can be used aptly to access the real-time changes in the volume of inflow and outflow and thereby predict demand volumes. This gives leverage for transportation companies to hire labor as and when there is an increase in volumes and thereby optimize operations.
There are many solutions provided in the industry today with software that is built with predictive analytics features. But one needs to ensure that businesses and their personnel are in sync with these tools. Only then can you gain optimum results from your supply chain operations thereby ensuring high levels of customer satisfaction.