How Data-Driven Logistics Work

The majority of exporters value real-time analytics over any others, according to the 21st Annual Third-Party Logistics Study conducted in 2017. Because of this, shippers started looking for opportunities to take advantage of logistics providers’ knowledge in strategic management, customer interaction and information technology.

However, this influx of information started posing difficulties, since capturing and storing this data requires masses of resources. Innovative new transportation technology needs logistics companies to conduct a range of long-term improvements. The ability to predict this information then offers a significant advantage. This is where data-driven logistics take form.

“Big Data” can show companies how to predict analytics, track historical information and analyse patterns by considering account trends as well as focusing on customer preferences.

Amazon is in the foreground of data-driven logistics since they are forever improving their logistics services. This makes Amazon a great competitor for smaller companies, encouraging them to use data and automation for decision-making. Resources like Artificial Intelligence (AI) allows logistics companies to cut their delivery times significantly and provide an immensely improved quality of service for their customers.

Main Features

Blockchain and Big Data

Smaller logistics companies have started increasing the use of IT services in their chain since they need to compete with bigger companies that already use blockchain and big data.

Blockchain, in simple terms, is a database that exists on numerous computers simultaneously. It is constantly growing as new records are added to it. This data cannot be edited, which makes it perfectly protected, maintaining an untainted history of records.

Big data refers to massive volumes of both structured and unstructured data so big that it becomes complicated to process by using traditional databases and software methods. This data is usually collected and analysed by companies for reasons such as discovering patterns relating to human behaviour and their interaction with technology so that better-informed decisions can be made.

These technologies allow companies to approve shipment specifications, to keep track of their shipments and whether they have been loaded, and to monitor the conditions in a container, all with the click of a button.

logistics analytic programAPI’s (Application Programming Interfaces)

Logistics companies can communicate data more efficiently using APIs in real-time. Companies need to ensure that the right people can access the correct information. It usually requires a lot of manual labour to access this type of data, but API’s eliminate the need for these manual checks, which ensures automated communication between devices.

Managers would only need to interfere with these processes to share or cancel edits within the network and to approve the access of data. API’s can also be integrated easily into any management platform/dashboard.

Safer and Faster Transactions

Because of the increased use of credit and debit cards, logistics companies have needed to adapt to their customers’ demand, offering flexibility and security. Cryptocurrencies make it easier for logistics companies to guarantee transaction safety and customer privacy, which is why Bitcoin is so widely accepted.


Keeping up with the latest technological innovations is by no means an easy task, but investments in data-driven technologies are the only way to keep a competitive business advantage. This is why data-driven solutions are expected to grow significantly in the very near future.

Many of these data-driven solutions include the usage of AI-based technology, blockchain and big data to increase the efficiency of logistics processes. It also increases the transparency of operations, which in turn elevates customer trust.