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How can logistics and distribution companies use analytics?
Logistics firms use analytics to monitor delivery performance, route and fleet costs, warehouse productivity, capacity and customer service levels. Combining order, tracking, cost and customer data helps identify unprofitable routes or clients and improve on-time delivery. Start with delivery performance.
Useful measures include on-time in full, cost per delivery, vehicle utilisation and dwell time.
Challenges often include data from multiple carriers and systems, inconsistent location or customer codes and the need for timely data. Operational dashboards with exception alerts tend to deliver quick value, while forecasting and route optimisation can follow once data is reliable. Customer-facing partners often value shared performance reports, which can strengthen contract discussions and service reviews.
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