Using data creates a competitive advantage that is vital to running a successful business, no matter what industry. Using analytics in 3PL operations can be game-changing.
Analytics are able to provide 3PLs with crucial insights that can improve operations. Looking at shipping times, order accuracy and volume, and updated inventory levels can help to identify problem areas before they escalate. The information gained from analyzing these factors creates an opportunity to proactively fix supply chain problems and improve customer satisfaction.
Let’s talk about a variety of ways analytics in 3PL operations can optimize efficiency and accuracy.
A variety of dashboards can be created to show team members real-time inventory levels so that they can analyze the order volume of different products. This can prevent running out of items that are selling quickly or overstocking items that aren’t moving. Monitoring inventory in real-time ensures all lot-tracked items are shipped before they expire, reducing wasted inventory and costs for the client. Inventory analysis is vital for strategic planning to maximize space in the warehouse and ensure that there is the correct amount of each SKU based on expected demand.
By collecting data from your warehouse management system (WMS), you will be able to create dashboards that can help team members prioritize tasks throughout the day. You can review all the orders that need to go out and predict how many workers each area will need. Maybe you need more orders packed then you do picked today, so you would have four team members packing and two team members picking. A great dashboard automatically tells the team how many workers each department needs that day, maximizing efficiency.
One of the best parts of analytics in 3PL operations? When someone on your team does the analyzing and shows you a simple snapshot of what they discovered. For example, a quick snapshot that shows team members which orders require attention so they can resolve the problem quickly and stop the bottleneck. Quickly and easily viewing orders that need prioritization enhances the order fulfillment process.
Imagine quickly seeing a snapshot of orders that didn’t ship on time or were mis-shipped, along with the reasons why. This snapshot would be extremely helpful in anticipating these issues and creating proactive resolutions that improve overall operations.
Another way to use analytics? Repurposing the data for your clients so that they can make informed decisions.
For example, let's say that you have a client who is shipping a high volume of orders to California but they have all of their inventory in Brandfox’s Middletown, PA warehouse. In this case, you may want to recommend that they move some of the inventory to the Phoenix, AZ warehouse so their products are shipping to their California customers from a closer location. This small piece of information about order volume can help lower shipping costs and increase efficiency, leading to higher customer satisfaction.
Most importantly, you can share information such as real-time inventory levels, fulfillment accuracy, and SLA achievements. Creating automated reports with this data will help boost transparency with clients and help the 3PL identify why problems are occurring if there are any.
Analytics allows 3PLs to optimize order fulfillment and enhance supply chain efficiency. The utilization of data benefits both logistics providers and their clients, so it’s vital to take advantage of this data filled world that we live in!
Curious about analytics and technology in the logistics industry? Check out The Future of Technology in 3PL Operations.