How to use Shipment Data to Improve Your Supply Chain

KPI Creation

We’ve spoken before about the importance of key performance indicators (KPI) creation for transportation management professionals, but our experience has taught us that for some, data collection to fuel KPI analysis can seem like an overwhelming investment. The term “big data” is frequently tossed around in business and in the transportation industry specifically, but do the benefits of this tech trend really live up to the hype? The short answer is yes.

We’re proponents of big data, but only if it’s gathered with intent and used as a tool in informing smart decisions. Strictly staring at the numbers won’t aid in establishing new efficiencies or refining processes; historic and current freight data must be paired with keen decision makers and field experts to achieve any large amount of change.

Shipment Data

Invest in better data collection services such as a transportation management system (TMS) or dedicated logistics solutions provider (LSP) to improve the quality and accuracy of information gathered. Data is only as good as the tools and teams you use to manage it.

Establish goals before jumping into big data. Discuss your biggest logistics concerns with your internal and external stakeholders to determine the most pressing problems to track. This will contribute to the growth of a proactive mindset as opposed to a reactive mindset.

Gather relevant shipment data from your TMS system and avoid random collection and redundancy. Figures pulled should directly relate to pre-determined issues or KPIs, so that continued progress can be made and the risk of misdirecting resources or getting sidetracked from important goals is reduced. Investigate other data points when resolving a new challenge.

Partner with the right people to collaborate and view data to brainstorm ways to correct the issues highlighted or augment successful endeavors. Involve decision makers from various levels as necessary to arrive at the best plan of action.

Create regular reports to judge progress and set timelines in addition to quarterly goals. Take advantage of the reporting feature of your TMS, if supported. Remember to compare select figures with industry standards to further inform where you stand.

Identify patterns in data to proactively track down the source of issues and correct them. If patterns develop in carrier performance, for example, consider reevaluating the value of that carrier to fill the role with a better performing carrier.

Compare rates year over year when negotiating freight contracts to see how much money was saved and how much more a different supplier or carrier can save you in the year ahead. Without this data you’ll never know how to properly optimize your shipments.

Launching a successful 3PL partnership will put this initiative on a fast track, and we sincerely hope you elect to select TLI as your logistics solutions provider.