How Business Intelligence Can Assist 3PLs in Lowering Costs and Improving Customer Experience
When the globe began to adopt Japanese manufacturing and distribution philosophy – Just-in-Time (JIT), Kaizen, and Lean manufacturing – the function of logistics underwent a fundamental shift. Since then, logistics management has gotten much more difficult. To effectively manage their customers’ supply chains, 3PLs must analyze shipment data collected from numerous sources and translate it into actionable insights. Business Intelligence (BI) reports and dashboards can assist 3PLs in gaining insight into the complex Transportation Management process. We will look at the key areas where BI Reports and dashboards may assist 3PLs in efficiently analyzing and improving service efficiency and cost saving.
Courier Performance Evaluation: The performance of courier firms can be evaluated based on a variety of parameters such as pickup slippages, connection delays, location-specific delivery times, lost damage frequency, and so on. This study will assist them in selecting the best courier players for their shipments. Rating the courier players based on their service performance as well as the cost of using the service will assist the warehouse operations team in selecting the most efficient and effective player.
Vehicle Cost Analysis: The costs of hiring vehicles and completing deliveries can be calculated project by project. The Capacity Planning Report assists in understanding the loss caused by a capacity deficiency. Comparing vehicle expenses to courier expenses for those shipments can help you determine which choice will save you the most money. Reports on costs incurred at various sites of delivery, such as mathadi\union charges, unloading charges, vehicle halting charges, and so on, would provide a thorough view of overall expense made on delivering goods. This information will aid in forecasting costs for future deliveries in this mode.
Team Performance Analysis: Team efficiency can be measured using a variety of criteria, including the time it takes to pick the ordered items and process the order, coordinate with vehicle vendors and third-party couriers to arrange pickup, dispatch shipping, and follow-up for delivery closure, and so on. These reports assist management in understanding the issues and problems that ground teams face and in offering proactive support and making preparations to improve performance.
Return Shipment Analysis: Shipment returns reduce profit, however appropriate analysis of return shipment data can assist to streamline procedures and improve customer experience. Shipment returns can be studied based on a variety of characteristics such as customer returns, courier player returns, incorrect products supplied, customer input on the cause for returns, and so on. Insights and trends obtained from these aid in the development of efficient return management procedures, and these value additions assist 3PL companies’ clients in winning future sales.
Routing and Scheduling: Analyzing shipments that are returned without being delivered can help improve intra-city delivery route planning. Analysis will aid in determining what would have happened if the trip had begun an hour earlier or later, if there was a delay in a specific client location, if the delivery was combined with other deliveries, and so on.
- P&L Analysis
- Capacity Planning Report
- Operation Efficiency
- Courier Performance Measurement
- Expense Analysis
- Docket wise Cost Analysis
- Routing Efficiency Measurement
- Return Cause Analysis
With the increased speed of supply chain operations and last-mile logistics in recent years, 3PLs require all the assistance they can get in terms of optimization and advice. 3PL companies stand to benefit greatly from embracing the potential of BI Reports and dashboards. It will not only assist them in cost reduction, but it will also assist them in optimizing day-to-day processes and improving their client experience.
How ShypVisor Can Help You?
We at ShypVisor, built a Cloud based Shipment Management Software (SaaS) exclusively for Third Party Logistics (3PL) service providers, Supply Chain Service providers, C&F, Distribution companies. Salient features include Client & Vendor Rate contract management, Bulk order import through XL or API, Multi Courier Tracking, Bulk POD download, Claim management, Raising Client Invoice, Vendor bill validation, WhatsApp notification, Customizable MIS templates and many more. The software automates processes that otherwise require huge time, efforts, and manpower resulting in huge cost savings. There is no huge upfront investment required for the software as you can pay only for what you use on a monthly subscription basis. Get in touch with our experts for a quick tour of our solutions.