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14 aug 2018

The impact of Big Data on route planning

Big Data sounds rather vague, but it’s incredibly valuable.

Rutt- och verksamhetsoptimering

Big Data is defined as data sets too big and complex for conventional data-processing application software to handle. Enter Data Analytics, which analyses that data via computer, revealing trends, patterns and associations – in other words, Data Analytics extracts value from Big Data.

What makes all of this especially interesting is when you apply it to logistics.

Consider that logistics has any number of moving pieces that can create bottlenecks. Because Big Data is an information-driven architecture, you’ll get an accurate and comprehensive picture of your business and the issues impacting it – and what’s causing the bottlenecks. That is, if you understand what the data is telling you. Big Data can’t help one bit if all you do is stockpile it.

But where is your data coming from? That’s the first question. Some examples might include:

  • Traditional enterprise data from operational systems
  • Traffic and weather data from sensors and monitors and forecast systems;
  • Vehicle diagnostics, driving patterns, and location information
  • Financial business forecasts
  • Social media

What Big Data tells you

With this much data, you can anticipate busy and slow periods, when you need to restock goods, or find out anything you need to know so that you can provide a consistent on-time performance.

Big Data can measure travel behaviour accurately and comprehensively. It can tell you exactly why last-mile delivery is so often the most unprofitable in the supply chain. For instance, Big Data can reveal characteristics of road infrastructure. It can highlight traffic and congestion dynamics and even show you sociodemographic profiles of your customer base.

Armed with this information, the possibilities to enhance your customers’ experience are endless

What about route planning?

It goes without saying that route optimisation is essential to finding cost efficiencies in transportation while maintaining margins. You’re probably already using a routing system to calculate where you’re going. Big Data does this based on shipment data, traffic situations, weather, holidays, delivery sequences and other factors.

Intelligent route optimization also plays a crucial part in the case of determining which vehicles to choose over possible routes and junction points in order to optimize the flow throughout the chain in terms of cost and time. Truly intelligent solution optimises many hundred thousand master route stops in one optimisation. Second by second, it optimises highly dynamic and real-time-based routes.

Route optimization has the potential to reduce:

  • CO2 emissions by 5% – 25%
  • Mileage and driving time by 5% – 15%
  • Number of vehicles on the road
  • Wage bill due to fewer drivers needed
  • Time spent on planning and administration, 25% – 75%

You need data analysists

AMCS Analytics gathers the data and makes sense of it for you. Not only can this help you optimise routes, but it can help you determine your pricing strategies and identify areas for expansion and growth, just to name a few advantages. 

Remember, just holding the data isn’t going to do help you one bit. It’s what you do with it that matters.

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