BI – Logistics and Transportation

Supply Chain involves moving a product or a service from supplier to customer and involves activities like sourcing, procurement, conversion and logistics. Logistics deals with the management of flow of goods and services between point of origin and point of consumption. Logistics is subset of Supply chain and depends largely on Transportation of goods and products within targets. Because of asset intensiveness transportation is often outsourced to Transportation Service Providers (TSPs). Often TSPs act as LSPs Logistics service providers by providing assistance in whole operation.

Today in the world of data driven businesses and need for access to right information in right time logistics and transportation industries need query and reporting solutions to access critical business information for strategic decision making.

Business drivers in transportation include:

  1. Increasing competitiveness in market
  2. Unpredictable market trends
  3. Cost cutting
  4. Need for granular visibility into dollar spending
  5. Trends in cost and performance
  6. Root cause analysis
  7. ‘What if’ scenarios for resources

Few of the areas that BI can impact in Logistics and transportation industry are:

Some of the KPIs worth measuring are:

1. Carrier Management (planning, capacity utilization, resource utilization, load balancing)

2. Route Management (lane utilization, scheduling accuracy, line haul efficiency, and planning and deployment efficiency)

2. Terminal Management (dock productivity, vehicle load/unload time, dispatch operations, labor efficiency, carrier selection, on-time vehicle arrival, order receipt accuracy, percentage of goods damaged, damages as a % of throughput)

3. Productivity (load efficiency, on-time delivery %, average transit time, cost of transportation, empty miles)

4. Financial (Net revenue per terminal, fuel surcharge per terminal, fright bill audit, bill processing, payment service, total transportation cost as a % of delivered sales)

5. Order Analysis (order receipt time, order information accuracy, revenue per order, percent order discount, cancellations, returns, fulfillment %)

About Abi Gupta

Business Intelligence enthusiast with background in predictive analytics and six sigma and interests in best practices, visualizations and capturing trends in BI.
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