This is the third blog in our three part series on data. Part One covered why data was important (blog link). Part Two covered How to Get Good Data (blog link). In this blog we’ll answer some of the questions that came up in the last blog and we’ll discuss what to do with data once you have it. Data is important because without it your company can’t make informed decisions. You get good data through your own historical sales numbers, and, most importantly, by asking for electronic billing and getting raw data from your carriers.
Challenges:
In our last blog we brought up some challenges you’ll encounter when it comes to effectively using data. For instance, how do you effectively analyze such large amounts of data on your own? If you subscribe to e-bills every week, you get files with hundreds or thousands of rows and columns of data and it is impossible to analyze it on your own. Shipping carriers offer data analysis tools, but they don’t give you the whole picture. Ultimately they are invested in growing their own business, not yours. UPS will not tell you when you could save money by shipping ground instead of air, or when you can combine packages to lower shipping costs. They only give you enough information so you feel informed, but are not dangerous to them.
Data Analysis Tools:
This is where AllGreen comes in. Throughout our history, we have developed data analysis tools that are meant to save you money. Where carriers obfuscate, we strive to give you clarity and help your business. AllGreen also offers software that allows you to get your data in one place. So often data is extremely fragmented making it impossible to see the whole picture. We remedy that with several solutions including Transportation Management Software (TMS). Our TMS and freight invoice auditing solutions bring all your data into one place and eliminate multiple rounds of data entry.
What Can Data Do For You?
Now that you have the data you need and the tools you need to analyze it, what can this data help you do? As we talked about in part one, the purpose of good data and good data analysis is to save you time and money. Throughout every step of your process, there are opportunities to save. By taking the raw data from your carriers and analyzing it, you will begin to see trends. It is in these trends that you will find opportunities to save.
Data analysis can show you:
- The places where you’re sending multiple packages. Instead of sending three 5 lb. packages, you can send one 15 lb. carton.
- How to make your shipping more effective. Where are you sending packages via air when it would be just as fast and far cheaper to send them via ground?
- Where to move your distribution centers. Perhaps the place you have your distribution centers is not the most effective. By relocating a distribution center you could be closer to your customers, giving you a shorter transit time and lower transportation costs.
Analyzing Discrepancies
In the last blog we said that historical sales numbers aren’t enough. When used in conjunction with the carrier data, however, it can be a powerful tool. By analyzing your numbers up against the carrier numbers you can find discrepancies. When you see trends in this area, it allows you to make changes to more accurately charge your customers. If you are charging your customers for a 10 lb. package but FedEx is charging you for 14 lbs., you are eating this cost. When you analyze this, you can find ways to recover your shipping charges. This allows you accurately negotiate with your carriers and create an effective transportation plan that supports your organization strategy.
Your Centralized Decision Making Hub:
Let AllGreen bring the pieces together, consolidate and compress the information into one clean format, and create a centralized decision making hub for you. Helping companies save money is what we’re here for. We have all the necessary tools and experience analyze and consolidate your company’s data so you can make the best decisions possible for your company.
Summary:
Good data is important because it allows you to save money and make good decisions. You acquire good data through electronic billing, getting raw data from your carriers, and your own data collection. Once you have the data, you will need tools or resources to help you analyze it. This analyzation leads to actions your company can take to save money and make your customers happy.
Let AllGreen bring the pieces together.