Reimagining transportation by leveraging data creates greater efficiency and helps companies meet growing global customer requirements.
Shrink your world – and your transportation costs – by applying enterprise analytics. Though many factors contribute to the overall business strategy, including inventory strategies, load management, and government policies, companies find opportunities to increase efficiency and reduce costs through analyzing their transportation operation models and finding the optimal deployment of assets and resources.
Organizations looking to transform their transportation processes should complete three critical steps:
Step 1: Start with the data. Organizations should analyze the resources they have in house and apply them to future scenarios to discover opportunities within the business. Even with incomplete data sets, managers who look to apply new tactics will explore new options and embrace successful solutions.
Step 2: Focus on the people. Analysis of the data will require recruiting and retaining people with the necessary math background and logical reasoning skills or finding current employees with the interest and aptitude to drive the analytics function. While the latter solution requires leadership to commit to employee re-skilling or training, working with the human capital at hand often yields a faster result than recruiting.
Step 3: Build the analytics operating model. Once the organization understands its supplies and people, it can evaluate its processes and create a system that balances the customers’ needs while addressing operational cost reductions. Then an enhanced methodology can be defined, which the organization can institutionalize and apply throughout the supply chain. However, analysts must continue to study external influencers and determine how the initial value can be sustained over time.
Implementation and benefits
A global packaging company operating a multi-tiered supply chain spanning 15+ countries came to KPMG for assistance in optimizing its route and load models. By accessing the company’s target operating model, network footprint, sourcing strategy, global trade strategy and product flows, KPMG helped the company to reduce its freight costs as well as save $1.5 million in logistics. The improved processes helped to raise critical customer satisfaction with higher service level performance.
Learn where best to apply enterprise analytics in your business to increase efficiency and your bottom line in “Transforming transportation.”