Why You Need Analytics In Logistics

Posted by Marian
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Customers usually are attracted to shiny objects or the ideal – so Zip Logistics aims to amplify and simplify logistics processes for our clients.

Analytics in logistics is evolving and getting better every single day. With that being said, it’s clear how every company is in a never-ending race to get the “perfect” supply chain. Transportation and logistics analytics are used to achieve this goal.

Data analytics has never been so important with an increase in last-mile services, automation, and artificial intelligence.  It’s now at the point where using your data effectively is a prerequisite to succeed as a company.

Increased analytics in logistics leads to a more excellent supply chain through increased visibility, more considerable savings, and streamlined operations.

Benefits of Employing Analytics in Logistics

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Enhanced Visibility

Having the upper hand on your business is essential – we can’t stress enough. Visibility is always a good thing. You can never have too much insight into your transportation and logistics analytics.

Many say that visibility should be priority number one, and it makes sense. With visibility, you can make informed decisions that will improve your shipping. You are no longer just reacting to the cause of some effect; with visibility, you can be proactive and take control.

Huge Savings

Who wouldn’t want to save on shipping costs? More significant savings is a priority for every company. No one enjoys being spending money just for the fun of it.  If there is a way for a shipper to shave off their shipping fees, they will take it. Analytics in logistics helps save money by looking at where your money is going, how often you’re spending, and when you’re spending the most.

Impact on Customer Experience

Say, for example, you have a customer that had many pick-ups and drop-offs scheduled on the weekend. Well, most carriers don’t want to work on the weekend and charge more money to do so. After uncovering this, the shipper was able to respond. They offset as much as they could to the weekdays and saw significant savings.

This is a pretty simple example but highlights that data and analytics are needed to stay competitive in today’s landscape.

Smooth and Quick Operations

Streamlined operations include route optimization, predictive analytics, and better order processes. Route optimization is something that is taking off with the increased adaption of real-time track and tracing.

Carriers can now be tracked in real-time, which means that every aspect of the journey can be monitored. Maybe it turns out that taking a detour to get to the other side of a central hub is more efficient than driving through. If so, then the information is sent, and the driver makes faster deliveries.

Predictive analytics in logistics uses machine learning or A.I. to pull in a massive amount of data. This data is used to detect any anomaly or abnormality. These anomalies can tell us that certain events impact things we would have never seen otherwise.

An example of predictive analytics would be discovering that specific lanes are slowed down during certain times of the year due to weather. Predictive analytics is all about finding connections in the data and using those connections to make predictions. 

Order processes can be streamlined by finding the best way for the shipper to get all the needed information to the 3PL or carrier.

Elements of Logistics Analytics

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Freight Costs and Volume

Freight costs and volume are pivotal. You have to be able to, at the very least, look at when you are shipping and how much you are spending. This report can tell you that certain times, days or weeks, cost more to ship. Additionally, it can show that shipping costs, in general, are rising or falling.

Lane Data

Lane data is another must-have for transportation and logistics analytics. With lane data, you can track the specifics of each route a carrier is taking. With this data, you can see which courses require more attention. Additionally, you can determine when you should go from spot to contract on specific lanes. 


Time is the most crucial asset in shipping and logistics. Knowing how much time is spent on shipping and ensuring KPIs are hit is vital. This kind of data is used to ensure that freight is being picked up and delivered on time consistently. Also, it is used to make sure that there are no massive changes in time to ship your freight.

Partner with Zip Logistics!

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Without investing in a bunch of technology, hiring, and training, partnering with a 3PL is going to be the best option. 3PL already has the tools set up and their teams trained to pull and analyze this data. 3PL’s know the importance of transportation and logistics analytics and make sure that it is available to all of their customers either as requested or in regular meetings.

At Zip Logistics, we are data-driven and results-oriented. We always want to provide our clients with an enjoyable shipping experience. We use a top-of-the-line TMS, track, trace, and other powerful data tools to ensure nothing gets overlooked. We always put our clients first in everything, so you always have the upper hand in your shopping and shipping transactions.

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