‘Data in logistics is highly valuable,’ began his presentation Niko Polvinen, CEO and Co-Founder of Logmore, during the opening keynote session at ‘Delivering Green: Creating Sustainable Supply Chains’ Conference, organised by The Logistics Point.
Data enables a completely new level of learning that can surpass what was possible before. Polvinen looked at the way humans can interpret data and compared it to computers. Machines can improve the way companies make decisions as they can better understand a complex and sometimes enormous amount of information faster and more efficiently.
For Polvinen an important question is what logistics data is. To those who are wondering where to start from, Logmore’s CEO suggested looking into each shipment and trying to get as much information out of it as possible. This task may sound easy but it involves multiple layers and organisations need to be mindful about the way they approach the data gathering. The next step will be looking at the information that is available outside the package and what is stored in warehouse management systems, for example. By doing this organisations will be able to extract as much out of what they already have to then use it in a way that can benefit their operations.
Following on this, it is also important to understand and plan the ways the data is going to be used. ‘The main usage of data is to measure and improve your KPIs,’ said Polvinen. Depending on your sets of KPIs the data can give you insights on how you are doing and how you can improve in the future. The well-organised data can give a deep understanding of where each process is heading to and how it can be done better.
Sustainability and data
Logistics data can help organisations be more Lean by tracking delivery times, bottlenecks and problems. This will help the overall sustainability goal of each organisation as it could provide an invaluable look into the way goods move. By applying data multiple factors can be improved to reach the optimal quality, speed and cost.
In addition, better quality data can reduce waste. If organisations know where bottlenecks are and what is happening with each shipment they can better determine why waste is happening. ‘Optimising packaging, product materials and partners’ relationships based on real events is very meaningful,’ Polvinen concluded.
Watch Niko Polvinen’s full presentation at ‘Delivering Green: Creating Sustainable Supply Chains’: