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Did you hear the one about UPS? The one where they spend over $1 billion a year on big data applications, technology and infrastructure? If you tend to scan over headlines like that, you wouldn’t get nearly the full picture of UPS’s investment. It turns out UPS spends over $1 billion per year on just a single big data project. 
If you’re at the “what’s big data?” stage, let’s start there because you already know what it means, but just need some perspective.
From keeping track of SKUs to the information you get from your transportation management systems, you use data throughout your operation. But similar to what the internet has done for our connectivity and interaction with each other, the Internet of Things (IoT) connects us to far more sources of information that logistics companies can use to improve their business.
What’s IoT? You already know what IoT is too. If your image of the internet is a worldwide network of computers, IoT is a worldwide network of things connected to the internet. Things like refrigerators, your home security system, or your fleet of trucks.
As logistics companies get more access to information sources through IoT devices, the amount of data they have to increases exponentially – until it becomes big data.
How Big Data Helps Logistics Companies
UPS spends $1 billion annually on a system called ORION, or On-Road Integrated Optimization and Navigation. ORION helps UPS optimize thousands of delivery routes per minute and monitors driving habits with the ultimate goal of making drivers more efficient.
There are many other applications of big data in the logistics industry that are either in the works or already available.
- Parcel Volume Analysis – With more accurate predictions of parcel volume peaks and troughs, logistics companies can more efficiently allocate resources.
- Real-Time Risk Management – From union strikes to bad weather, unexpected problems affect delivery times. Spotting them sooner, and generating potential solutions helps to keep your shipments moving.
- Customer Service – From more accurate predictions of delivery times to customizing services for web visitors, big data helps logistics companies improve their customer services.
Whether you’ve already applied big data technology in your business, or it’s still just a “we’ll have to look into it” item on your meeting agendas, it is very likely to be a bigger part of your business very soon.