Starting is winning. That's the message about big data in logistics from Herman Roose, until recently ceo of Bakker Logistiek Groep. 'Data are "big" because they are unfathomable. They are unstructured, sit in different systems and are therefore inaccessible. For many companies, this is a reason not to do anything with big data, but they are missing out on a goldmine.'
Roose shared his experiences on big data in logistics at a roundtable of Inergy, specialist in business intelligence. From his story, four reasons can be gleaned for getting started with big data in logistics:
Standardisation of processes
Many companies have standardised their processes. At least, that's what they think. Until studying data, for example, reveals that different data is recorded in different warehouses. How is that possible if those processes are standardised? Then it turns out that different process variants are often created for different customers after all, which is far from always necessary. Roose: 'Standardisation of processes ensures more consistent data and better insight.'
2. Quality of processes
Those who analyse their data often discover that employees are far from strictly following the processes. Consider the example of truck drivers who are supposed to load or unload at a warehouse, but invariably record long waiting times. What does enquiries reveal? The drivers invariably let their colleagues from other logistics providers get ahead of them. After all, they get paid for their waiting time, while their colleagues do not. Similarly, data analysis reveals that drivers by no means always operate their on-board computers correctly, leading to unreliable data and inefficiencies in logistics. Roose: 'Data provide unflinching insight into the quality of processes.'
3. Save time and costs
Transport planners start planning all over again every day, while a large proportion of trips are probably identical to those from a week ago. Those who analyse their trip data may discover opportunities to define fixed trips and then optimise those trips, e.g. by asking regular customers to load or unload a few hours earlier or later. In short: data provide insights that enable planners and other employees to work more efficiently.
4. Better decisions
The fact that most companies still make little use of the data available in different systems and departments shows that many decisions are made on gut feeling or not at all. Roose: "I would rather people make a wrong decision based on good information than no decision at all.
Finally, the roundtable gave some tips on getting started with big data:
- Start with small steps. When the first results are visible, the demand for more information will naturally arise.
- Combine data from different sources. Don't let difference in data structures hold you back.
- Don't settle for people who say they don't need more insight. Yes, things are going well now, but only until they go wrong.
- Ask the right questions. People are not reluctant to big data, they just don't know what they are missing.
- Stop generating endless reports that nobody reads. Employees are very busy, but often just apply a trick instead of analysing the underlying data.
Marcel te Lindert - journalist logistics & supply chain
