3PL\\\


side,” he said. One issue


with data


collection is finding it all. “If you ask me are people


utilizing this data for making better business decisions, absolutely not,” said Matt Elenjickal, founder and CEO of logistics software company FourKites. “Nothing is happening because this data, it’s all sitting in silos.” Sources acknowledged that


big data collection is complex, but the advantages are many. SEKO works with a large


“When you look at what goes wrong within those businesses, it’s very rare that something new is wrong.” -- Marc Gross, SEKO Logistics


Americas. Gleaning information from


multiple sources is intrinsic to big data. DB Schenker’s team of scientists builds predictive analytic algorithms to account for supply chain factors such as weather, environment and other historical data. “The biggest value and


importance comes in basically the time to react,” Ebach said. “How quickly can you react to these intrinsic factors, and how quickly can you predict what those intrinsic factors are either from a probability standpoint, how often they will occur or when they’ll occur?” DB Schenker keeps data


for 7-10 years and can delve into its more historical data pool since the company was founded almost 150 years ago. Tim Thomas, director of IT


at logistics services provider Translogistics, said the industry overuses the term big data. Companies must first focus on the source of the data and how to collect it. “Everybody’s throwing the


terms out, but at the end of the day, if you don’t have the tools and the processes – and, ultimately, the guts to actually make change where needed to collect the data, the data isn’t really useful at all,” he said. “If you’re getting big data, it’s got to be big enough that you get a good, broad view of everything you’re trying to do and the decisions you’re trying to make, but granular enough that you can dig into the details


and actually effect and make change.” Thomas said before 3PLs


venture into predictive analytics, they need to look


US customer to look at non- compliant suppliers who don’t deliver the required quantities or on time. By managing data on the suppliers and the speed and flow of inventory, the customer found that it has required less use of airfreight. Gross said the customer, who used to use airfreight almost all the time, has now cut it to under 25% of the time. “We look at all the different


ways of manipulating that information for them to try and get to an optimum value point,”


obligates every truck in the US to have a GPS by the end of 2017. The US Food Safety Modernization Act requires a temperature-monitoring device on temperature- controlled trucks. These devices generate data


on location, driver behavior, fuel consumption and engine performance, Elenjickal said. Using this data and geofencing, which employs GPS to create a virtual geographic boundary, 3PLs can tell whether a truck will pick up on time up to 10 hours in advance. Elenjickal said this proves


useful for distributors working with big box retailers who know their truck will miss an appointment. “That’ll give our customers enough time to call Walmart or Target and maybe get a different appointment time,” he said.


No missed appointment, no fine


Kewalram of Agility said big data speeds up decision- making and response times to events – and it’s at a lower cost because big data uses software, not people. “For example, something


happens in a global supply chain outside anybody’s control, some geopolitical event happens in a country in Asia,” he said. “The ability then for real-time feed to a customer to help to dynamically alter the logistics plan, that’s invaluable.” Kewalram said customers


can also reshape the supply chain when consumer demand shifts. After all, companies don’t always know when demand for a new smartphone will surge in a region. “They can get their product


“The biggest value and importance


comes in basically the time to react.” -- Richard Ebach, DB Schenker Americas


at descriptive analytics. That involves looking at historical data as a whole and preparing it for possible further analysis. The next step after


descriptive analytics is predictive, Thomas said. “Until you get that fundamental piece taken care of and companies have really adopted it as a whole, you’re not going to see a lot of success in the predictive


Gross said. “We can basically say, ‘If you do these things, if you employ these different systems, if you manage the information in this way, these are the buckets of value that you create.’” Elenjickal of FourKites said


data has changed trucking, partly because of new regulations. The electronic logging device mandate


into the store or into the omnichannel e-commerce stream faster and with less wastage,” he said. “That less wastage is the key because inventory can be a bad word in supply chain management logistics.” There are countless


ways that big data gives a competitive edge. Thomas of Translogistics said companies can determine the feasibility of opening or move distribution centers. Ebach


of DB Schenker


said the 3PL uses big data for capacity planning and in warehouses to determine


Issue 5 2017 - FBJNA manage


chain. “The


19


Ebach said big data helps a complex


challenge of supply supply


chain is that as we look at the world today, everything seems nice and neat. You can make your plans. You can really structure: this is your supplier, this is your manufacturer, this is your distribution network,” he said. “But the reality is that the world is really messy and there are a lot of intrinsic factors that will impact that.” Sources said the information


used in big data must come from multiple places, not just a single company. Otherwise, it has limited potential.


“At the end of the day, if you don’t have the tools and processes -- and


ultimately the guts to actually make change where needed to collect the data, the data isn’t useful.” -- Tim Thomas, Translogistics.


staffing needs. DB Schenker’s warehouses even use Internet of things, or everyday objects connected to the Internet. Big data presents different


opportunities for various transport modes. Elenjickal said sea vessels have satellite communication that can


“We have to look at big


data as collaborative data,” Kewalram said. Big data creates massive


amounts of material, and 3PLs can get lost when tackling issues in their supply chain. Gross said drilling down to the granular information


“If you ask me are people utilizing this data for making better business decisions, absolutely not.” -- Matt Elenjickal, FourKites


power a feed. Sensors along rail ties generate data as railcars pass. “The technology’s out there


across all these different modes,” he said. “It’s just a matter of getting everything together.”


can pinpoint the causes for a particular issue. “It’s incredibly complicated


and I think it’s quite a long journey, but it’s very exciting,” he said. “I think it will be one of the biggest changes in logistics for a long time.”


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