TECH & INNOVATION

By Kawal Preet | First published: September 23, 2022    Updated: September 18, 2024

Big data in logistics is driving the evolution of intelligent supply chains. As AI and data-driven networks advance, businesses can enjoy a smoother, smarter delivery experience.

• As supply chains get smarter, the world’s economies and communities become more connected.
• With global disruption posing an ongoing risk to supply chain stability, the role of technology and big data is more important than ever.
• Kawal Preet explores the benefits of big data for businesses and ways to leverage the latest tech to drive growth.

Supply chain disruption is a familiar pain point for businesses in Asia and around the world. There are few industry sectors that have yet to experience supply chain bottlenecks, raw material and component shortages, and infrastructure issues. These are often caused by geopolitical tensions, or extreme weather events.

The rise of big data in logistics

But this challenge also presents an opportunity. By collecting and using the data that is continuously generated within and around supply chains, they can be made smarter, more predictable, and controllable. This benefits logistics providers like FedEx – and it benefits our customers, too.

Data and technology hold the key to unlocking and building better insights, increasing visibility, and improving customer experience. It’s no longer just information about the package, but also the environment in which the package is traveling. We combine this data to generate insights that ultimately give more control to our customers.

Connecting physical and digital networks

Every day, millions of packages move through the FedEx network. Each one of them is scanned around 20 times before reaching its destination, moving in a combination of aircraft and delivery vehicles. Our teams around the globe need to be able to act quickly and decisively to ensure packages are delivered at the right time, and the right place.

At FedEx, we recognized early on how data drives innovation. Today, our analytics center in Singapore works closely with FedEx Dataworks. Our Dataworks team is steering the company’s digital transformation, by using data to optimize internal operations. The teams use machine learning, AI, and other advanced analytical methods to improve processes, prevent problems and enable real-time decision-making.

The benefits of big data for businesses and shippers

When you’re sending time-sensitive, life-saving, or other high-value goods, you need to be in control. And you need to be able to make proactive decisions to keep your business on track – and your customers coming back.

One solution we’ve developed is a near real-time package monitoring system, FedEx Surround, that enables our customer service and operations teams to anticipate issues and take action to prevent shipment delays. Predictive algorithms are used to prepare customs clearance information, so that shipments can be delivered as soon as they arrive in their destination country.

In addition to parcel scanning, a sensor device can be placed inside a package or container and transmit location, temperature and other data. Using SenseAware ID, this enhanced, real-time visibility helps businesses plan the next steps in their supply chain. An example is making sure engineers are on-site at the right time to receive and install a critical spare part that’s just been delivered.

Tapping the full potential of data is essential

With supply chain disruptions set to continue for the foreseeable future, logistics teams need the power to think and act with agility. Real-time visibility of shipments in transit helps ease some of the stresses of keeping a business on track.

At FedEx, we operate right at the intersection of physical and digital networks. By continuously dialing up greater amounts of connected, contextual data, we are transforming to give customers more insights.

Tapping into the full potential of data analytics helps us improve efficiency, reduce errors, avoid problems, and increase transparency. Most importantly, we can deliver more intelligent supply chains – ultimately adding value for our customers.

For more insights on how supply chains are transforming, check out my Supply Chain 5.0 series here.

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A version of this article was first published in Forbes Asia.