Why location is the hottest word in Asian-Pacific supply chains
Ian Dickson — 21 July 2022
2 min read
16 August 2022
The Port of Long Beach takes in 31% of imports to the US. From there, goods are taken to fulfillment centers and then distributed around the country.
But while these routes play a critical role in the American supply chain, many delivery companies — some estimates put the figure at 82% — still rely on manual processes.
Using paper maps and fixed routes allows fleets to calculate a trip based on the length of the journey, for example. What it won't do is calibrate for information such as type of vehicle, construction works on a particular road, whether you are traveling during rush hour, and other temporary changes that make a huge difference to trip times.
Fleet managers may be put off investing in digital tools. But as you can see from our map, accurate routing that takes every factor into account makes for savings.
Predictive supply chains: fast facts |
* Only 30% of supply chain managers use predictive analytics |
* 82% of delivery companies still rely on manual processes somewhere in their supply chains |
* By implementing predictive models, fuel and operating costs can be reduced by up to 20% |
Beyond paper-based processes, dynamic routing can benefit from real-time ETAs to generate alerts, manage and analyze dwell times as well as create driver-facing applications.
Adding real-time location intelligence into the mix also allows for post-trip performance analysis.
However, the ultimate goal for supply chains is to move to a predictive model. As the interactive map shows, seeing how much you can save for many trips over time is useful for business decisions and forecasting.
Alex Osaki, HERE Product Marketing Manager, talks through the common thread behind today's supply chain issues.
Predictive supply chains use a deep learning-based predictive algorithm. In this phase, users can create accurate multimodal ETAs and replace time-consuming, manual tasks, such as load and capacity, optimization and risk analytics.
Predictive ETAs require data for training and testing, including substantial historical data covering seasonal patterns. The quality of the data matters as this will make the model more accurate.
However, in uncertain times, it is clear there is much to be gained from understanding your truck's routes and improving on them.
Beth McLoughlin
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Ian Dickson — 21 July 2022
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