Data analytics, the future of logistics and transportation

By Anayancy Ulloa Luna

Before talking about data analytics, we should review companies’ actions to regulate their processes and control them through a computer system.

Nayibe Yara González, director of systems and projects at Onest, a logistics operator, or 3PL, noted that for many years companies have been immersed in initiatives and projects to digitize their processes, and that these run through either an ERP, which works to control administrative and business processes, or a WMS system, which, for example, manages processes in a warehouse.

“This has generated an enormous amount of data information. Together with all the new technologies, now is the time for it to be converted into value, into information to help companies make decisions,” González said. Data analytics performs this information analysis.

The future of logistics

González explained that companies use different processes. Although some companies are just introducing computer systems in their processes, others have been doing this for a long time and are now introducing information analysis tools. Some companies that have progressed further incorporate new technologies into their analysis to plan the future.

“There is diversity within companies and in the logistics sector. Onest, for example, is currently implementing tools that allow, with all the information it has about its clients, to generate reports and information to optimize warehouses and make processes more efficient,” said González. She added that this will help collaboration with clients and augment their information systems with useful data to describe and predict what will happen to clients and their markets.

González noted, “Some companies are already far ahead, are pioneers in using data analytics. Amazon is spearheading its use. Companies with a level of local impact in their business niches are using the great possibilities that technology offers today to improve business processes and decisions, and provide customers with one more tool to analyze their information and their businesses.”

She noted that there is still much to explore. Technological growth and the inclusion of new technologies is growing exponentially, and the speed at which these tools progress and change is impressive. González said that keeping up with technology is a major challenge for companies. “I believe that the company that does not capitalize on the possibilities that technology offers today will be left behind. It is important to move towards informed decisions. A critical business objective is to move towards intelligent information management not only for the future, but also to introduce trends and predictions that allow us to react quickly to the changes that are being observed today.”

Information analysis: the way of the future

“Companies must be aware that information analysis is the way of the future. The costs are not going to be reflected in an immediate change in the company,” González said, and added the challenges to companies:

• “Cost is an important aspect, since you must first invest in computer systems financially as well as in time to achieve a successful implementation process.

• Data analytics tools increase costs not necessarily directly under the control of the company. They include the cost of knowing the market and determining trends, but not necessarily controlling business processes.

• New positions begin to appear in companies, such as scientists and data miners. At some point, companies will have to decide to hire a third party specialized in these issues, and this will impact costs.”

Logistics projections

González commented that logistics processes will have to be increasingly integrated into companies’ production chains, such as equipment and infrastructure that can control processes and at the same time generate data. One example is GPS systems and temperature measurement sensors in transportation. Another is in warehouses, where we talk about a “put-to-light system”, a “put-to-wall system,” or robots that provide information in real time about what is happening with the product.

“Currently, robotics, which can be a determining factor for introducing automation in warehouses, is still very expensive in Mexico,” González said. She explained that this is because the investment in an automated system vs the cost of labor—even robotics—is generally too expensive to be justified. However, she expects that the next few years will see the incorporation of these systems into warehousing and distribution processes.*Published with permission from Mexico Industry. Follow the link to for more information.   https://mexicoindustry.com/noticia/data-analytics-el-futuro-de-la-logistica-y-el-transporte-