How is big data changing the logistics industry globally and in India?
Big Data is the term used to represent an analysis of a large amount of data that can result in the generation of valuable information and insights. Big Data has transformed from the confined realm of technology to become a business priority.
A report by Novonous states that Indian logistics market is expected to grow at a CAGR of 12.17% by 2020 driven mainly by growth in sectors like retail, FMCG, and e-commerce. India spends around 14.4% of its GDP on logistics as compared to 8% spent by other developing countries. Indian logistics market recorded revenue of US $104.10 billion in 2014 and is likely to reach revenues of US $150-$160 billion by 2020. Research indicates that global market value of logistics has surpassed US $4 trillion that is 10% of global GDP. India can develop itself as a logistics hub as it is strategically placed in a zone connecting South East Asia and Oceania on one end and the Middle East, Africa and Europe on the other end.
The logistic industry is undergoing a fundamental shift from product-related services to related information service. Logistics industry can be more efficient by using data-processing and analysis capabilities. Big Data has helped businesses to gain better insights that improve their daily operations and the future operations. The real-time information helps in sharing the information with partners to act rapidly on prospective loss of revenues and profits that occur at various points. Big Data analytic has helped organizations with a competitive advantage because of optimization, tangible goods & consumers, in sync with customer business, information, and Global coverage.
Globally companies are learning to turn large-scale quantities of data into competitive advantage. The companies are able to forecast market demand precisely; radicalized customization of services and entirely new business models demonstrates exploitation of the previously untapped data. As per DHL report, 60 % of the businesses are ready to invest in big data for the next five years. In India, start-ups like LogiNext have come in with providing real-time big data analytics platform that helps courier companies to bring in efficiency in their delivery network by route optimization and real-time tracking. Big Data analytics helped companies like Snapdeal deliver during Diwali sales frenzy. Big Data is increasingly being utilized to improve operational efficiency, customer experience, and new business models.