The Benefits of Shipping Analytics Software
Shipping analytics software is a game-changing application in the shipping industry that can boost efficiency at a multi-tier level, making it a must-have for businesses looking to improve their operations.
Simply put, software that enables you to gather and analyze data for better insights into your business operations qualifies as shipping analytics software. And though there are many options for you to choose from, they must have the following features to be considered a high-quality tool:
- Allow companies to monitor their shipments in real-time, so they can quickly identify any delays or issues that arise.
- Analyze shipping data to identify trends and patterns, allowing logistics companies to make informed decisions about their shipping operations.
- Help businesses identify cost-saving opportunities by analyzing shipping rates, carrier performance, and other factors.
- Monitor carrier performance to ensure that they are meeting service level agreements (SLAs) and provide alerts in case of emergencies or problems.
- Use historical shipping data to forecast future demand and plan for peak shipping periods.
- Provide customizable reports and dashboards that allow companies to monitor key performance indicators (KPIs) and track progress toward their shipping goals.
These characteristics point toward the importance of reliable maritime analytics software and what it brings to your business. For a more thorough explanation, let RTS Labs help you examine the benefits in detail to see what you can get when you implement a shipping analytics software solution for your business.
What Benefits Does a Shipping Analytics Software Bring?
If you are considering investing in shipping analytics software, you have already taken the first step. Choosing which option is better for you generally depends on your budget, goals, and business needs. But, overall, you can derive value with the following benefits with just about any shipping analytics application or program you choose.
Restructured Processes
With the right shipping analytics software, you can streamline your shipping processes and save yourself from unnecessary expenditure in both money and time. In the long run, this will enable a more proactive approach on your behalf, where you can take quick action for any shipment or supply chain delays, performance issues, or unnecessary spending that it identifies.Â
Furthermore, you can monitor various aspects of your business, ranging from shipment to delivery to return statistics for a better shopping experience.
Better Decision-Making Capabilities
If you’re looking to gain a competitive edge over competitors, use maritime analytics software to help you make better and more informed decisions for your business. For example, one of the most important ways such a tool can benefit you is to help you monitor and report on both current and future trends, upcoming demand, and peak season forecasts, which can help you allocate your resources accordingly.Â
This not only helps you get ahead of your competition, but it also gives your business a solid reputation needed to stand out in the industry.
Improved Operational Efficiency
Improved operational efficiency is another benefit that you can unlock with your shipping analytics software. As mentioned earlier, with features like real-time tracking, data analysis, and monitoring carrier performance, you can get access to better forecasting and plan accordingly, using Big Data to help with vital business decisions.Â
With carrier monitoring, for example, your company can work with only high-performing carriers to guarantee optimum operational efficiency.
Real-time Visibility into Shipping Data
In addition to real-time tracking, you can also benefit from better visibility for your supply chain operations by tracing the location, status, and estimated delivery times of your shipments. With a user-friendly dashboard and a clear overview of your orders, you can see where your shipments encounter delays or you missed deliveries, and take corrective action accordingly.Â
Through alerts and notifications triggered by such supply chain interruptions, this kind of visibility will give you the information you need to boost your productivity and grow your business.
Where Can Shipping Analytics Software be Applied?
With the benefits just mentioned, it is time to see where you can successfully apply your shipping analytics software. For such tools to work at their optimum levels and show results, RTS Labs suggests you start by applying the information and data it generates to the following areas.
Route Optimization
As already noted, shipping analytics software can help you analyze large amounts of data and report on where you will encounter delays or bottlenecks. But the next step is to identify the most efficient shipment routes, determine the best mode of transportation, and optimize schedules for your deliveries after assessing transit times.Â
In addition, weather conditions, delivery deadlines, and traffic conditions are all easily monitored and reported so you can benefit from lower fuel costs, faster deliveries, and reduced transit times.
Inventory Management
When it comes to inventory management, maritime analytics software can help you by forecasting the future demand for various products. This will make sure that you have enough inventory at all times to meet customer demands and avoid overstocking.
Another area of importance is lead time analysis, which lets you calculate how long it takes for products to be delivered from the supplier to the warehouse, or from the warehouse to the customer so you can plan your inventory levels and order cycles more effectively.Â
Finally, through a safety stock analysis, you can determine the amount of inventory that should be kept on hand as a buffer to meet unexpected demand surges or supply chain disruptions.
Performance Management
With shipping analytics software, businesses can better manage performance metrics and track key performance indicators, deliveries, transit times, shipping costs, and more. This enables you to have a stronger hand over your business monitoring and make informed decisions instead of relying on guesswork or assumptions, or risk human errors in any aspect of your business.
Real-Time Examples of Successful Shipping Analytics Software Application
We have gathered a few examples of businesses that have successfully integrated shipping analytics software into their supply chain operations.Â
FedEx
Shipping analytics software brought significant benefits to FedEx, a global parcel delivery services giant. By analyzing shipping data, FedEx optimized its shipping processes, reduced costs, and improved operational efficiency. The company focused on areas where it could streamline operations and save costs, resulting in improved profitability.Â
Moreover, FedEx’s customer service improved through real-time tracking information and other valuable data, leading to higher customer satisfaction and retention. And finally, FedEx identified new revenue opportunities, such as expanding into new markets or offering new services, resulting in increased revenue and improved financial performance.
UPS
Like FedEx, the implementation of shipment analytics software has been highly instrumental for UPS in optimizing parcel movement, product sortation, and dispatch planning. First, it provides valuable insights into warehousing, feeder operations, and hub operations, thus, enabling UPS to make better-informed decisions resulting in improved profitability and strategic planning.
Next, UPS utilizes shipping analytics software to provide customers with real-time tracking information, improving visibility and customer service. This has resulted in higher customer satisfaction and repeat purchases.Â
UPS quickly adapted to market changes and customer expectations, leading to improved flexibility and agility once it implemented reliable freight analytics software.
Amazon
By leveraging shipping analytics tools, Amazon – a multinational technology giant – enhanced its shipping processes, leading to improved operational efficiency, cost savings, and faster delivery times. A reliable shipping analytics software provides real-time inventory and supply chain data, which has allowed Amazon to improve inventory management and ensure timely deliveries for customers.
Amazon has also avoided shipment failures and delays by utilizing software-derived insights and anticipating future problems in advance. This has resulted in reduced customer complaints and improved customer satisfaction.Â
The company utilizes valuable data regarding consumer behavior and preferences, allowing the company to tailor its delivery options to meet customer needs. This has helped Amazon to remain competitive and maintain its position as a leader in the e-commerce industry.
Considerations for Choosing and Deploying a Complete Shipping Analytics Solution
Though freight analytics is the optimum solution for almost all kinds of businesses today, implementing your very own version of data analytics software will require a few considerations. Some of these include:
- Ease of use with a user-friendly interface
- Compatibility with existing systems such as inventory management, ERP, and WMS
- Data security measures to protect critical shipment data
- Cost-effectiveness in line with the company’s budget and requirements
Future Trends for Shipping Analytics Software
Maritime technology is rapidly evolving, with new trends and opportunities emerging that promise to revolutionize the way businesses manage their shipping operations. Among the most important future trends in this sector are:
- AI integration for automating tasks and real-time trend analysis
- Machine learning for predicting future cargo demands
- Predictive analytics for anticipating shipping requirements
- Blockchain technology for increased visibility and fraud prevention
Takeaway
The global shipping analytics market is anticipated to increase from $993.39 million in 2021 to a staggering $2,150.88 million by 2028, at a CAGR of 11.7% between 2021 and 2028. The rapidly evolving trends in shipping analytics software offer businesses new avenues to enhance delivery, reduce costs, and improve customer satisfaction.
By integrating AI, machine learning, blockchain, and IoT devices, you may improve your shipping operations and achieve a significant competitive advantage. Staying ahead of these trends can help your business thrive and succeed in the increasingly challenging business environment.
At RTS Labs, we make software that gives you an unfair advantage. Our elite cross-functional teams bring you the agility of a startup and the scalability of an industry leader.