Digital Transformation in Logistics: Predictive Analytics for optimisation of fleet management
With Ground Truth logistics providers optimise their storage and their tour management. There are basically two areas in logistics today in particular where predictive analytics methods can be used: The warehouse management and route planning.
Warehouse management in times of Industry 4.0: When every centimeter counts
The key issue of today´s warehousing is the optimum use of the available storage capacity. Based on historical data predictive analytics analysis identify patterns on which goods are stored most efficiently when, where and how and then picked again and delivered. Similar to the "smart factory" there is the "smart warehouse" in which all the receiving, storage, picking and delivery processes run fully automated in the future and rely on predictive analytics forecasts to optimise these processes and workflows. The focus is on a maximum efficiency and speed.
Punctual deliveries in parcel service: When every minute counts
The second field where predictive analytics methods are used, is the complete delivery. Firstly, the large logistics and parcel services offer their customers the information when they can expect their delivery in advance. The parcel service DPD for example provides its customers a time window for delivery, which is less than 60 minutes. With more than two million parcels per day, these forecasts are made on the basis of historical data and with the help of predictive analytics methods.
Avoiding empty runs and lower costs: Predictive Analytics helps
Logistic services in the business-to-business area also use predictive analytics to optimise efficiency and reduce their own transportation costs. According to the Federal Bureau of Motor Vehicles and Drivers around 2.7 million trucks were on German roads in 2015 and transported over three billion tons of goods. However, it was about one-third of the 400 million trips that were empty runs - an enormous cost factor for the logistics company and an unnecessary burden on staff, equipment, roads and the environment. More and more companies from the industry therefore go on to collect the transaction data of their trucks in real time, evaluate and based on this make forecasts for the future optimisation of their tours.
Data is the oil of the 21st century
This frequently quoted slogan applies especially in the area of predictive analytics. As the above examples show, all forecasts made with this method are based on historical data that is available in the company. And precisely for this reason the equation applies: Quality of data = quality of forecasts.
So that this equation is true we have developed a solution and process methodology, the GROUND TRUTH, that leads to a quality-assured data base and on that foundation reliable and resilient data analysis can be performed. The classic "Golden Record", the central master data record of a customer or prospect, is enriched by transformation rules that describe the access to interaction and transaction data in the various data sources. The "Golden Record" becomes the "Golden Profile" of the customer. This "Golden Profile" combines address data, purchasing behavior, purchasing history, preferences, and tracks that the customer leaves on the internet and social media as well as other channels and activities. This makes a truly complete, accurate and current 360-degree view of the customer possible for the first time.
The GROUND TRUTH method protects companies finally to create false predictions by incorrect data, thereby preventing incorrect business decisions.
When logistic companies want to optimise their warehouse management and / or route planning, they should not do without the GROUND TRUTH.
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Ground Truth is the foundation for revenue growth and new business models against the background of digital transformation, e.g. for the optimization of sales and marketing activities, campaign management, blacklist matching, Compliance or also Customer Relationship Management. The Golden Profile of each customer is at the heart of this process, i.e. the Golden Record enhanced with interaction and transformation data (transaction data). The Ground Truth means that decision-makers no longer act in a vacuum but have grip on reality for decision-making.