logistic case study

Logistics and Supply Chain Case Studies

Review our case studies to see how we’ve helped major corporations turn logistical ideas into a reality., leading beverage distributor, penske logistics helps beverage distributor rapidly establish new warehousing operations.

When this distributor had to expand its operation quickly to counter a competitor, they turned to Penske to deploy a customized solution.

Baby2Baby Donation Transportation

Coordination and planning lead to successful transport of $3 million clothing donation.

Penske Logistics worked with Baby2Baby, a nonprofit that provides basic essentials to impoverished children, and Old Navy to transport $3M of clothing donations.

Luxury Product Manufacturer

Penske logistics reduces inventory shrinkage, improves overall inventory management.

A leading producer of fine luxury products required a partner who could improve their warehouse and distribution operations and reduce the theft.

Poultry Supplier

Transporting food items requires extra care and expertise.

Poultry producers, navigate a complex array of supply and delivery challenges to ensure their food arrives fresh, wholesome, and on-time.

Building Products Manufacturer

Customized fleet technology solution.

A leading building products manufacturer sought to streamline its supply chain operations and expand its fleet while improving visibility through the implementation of fleet management technology.

National Wholesale Distributor

A national wholesale distributor case study.

A national wholesale distributor of heating and air conditioning supplies was struggling to manage its complex supply chain and maintain high levels of customer service, which is a top priority.

Looping Process Ensures Continuous Production

Penske collaborated with Novelis to create a closed-loop recycling network that moves finished aluminum coils and transports scrap for new production.

A Global Manufacturer

Optimizing activities in the distribution center.

Penske worked with this global manufacturer to optimize its inventory routing and mode selection and to improve visibility to its supply chain.

Quick Service Restaurant

Food and beverage in-store delivery and warehousing.

Penske helped this restaurant chain get its supply chain fundamentals in place with the right logistics tools, truck driver training and warehousing solutions.

Tier 1 Automotive Component Supplier

Managing the inbound supply chain.

Penske helped this supplier minimize supply chain disruptions by designing a network that optimized mode selection, routing and analysis.

• Supply Chain Management
• Lead Logistics Provider
• Consulting Services
• Network Design
• Dedicated Contract Carriage
• Shared Dedicated Transportation
• Freight Management
• ClearChain ® Control
• Transportation Services
• Transportation Management Solutions
• Truckload Shipping Services
• Warehousing and Distribution
• Warehouse Design
• Warehouse Operations
• Multi-Client Warehousing
• Freight Brokerage
• Freight Forwarding
• Become a Carrier for Penske

Contact Penske Logistics about our services.

• Browse All Articles
• Newsletter Sign-Up

Logistics →

• 25 Apr 2023

How SHEIN and Temu Conquered Fast Fashion—and Forged a New Business Model

The platforms SHEIN and Temu match consumer demand and factory output, bringing Chinese production to the rest of the world. The companies have remade fast fashion, but their pioneering approach has the potential to go far beyond retail, says John Deighton.

• 18 Oct 2022
• Cold Call Podcast

Chewy.com’s Make-or-Break Logistics Dilemma

In late 2013, Ryan Cohen, cofounder and then-CEO of online pet products retailer Chewy.com, was facing a decision that could determine his company’s future. Should he stay with a third-party logistics provider (3PL) for all of Chewy.com’s e-commerce fulfillment or take that function in house? Cohen was convinced that achieving scale would be essential to making the business work and he worried that the company’s current 3PL may not be able to scale with Chewy.com’s projected growth or maintain the company’s performance standards for service quality and fulfillment. But neither he nor his cofounders had any experience managing logistics, and the company’s board members were pressuring him to leave order fulfillment to the 3PL. They worried that any changes could destabilize the existing 3PL relationship and endanger the viability of the fast-growing business. What should Cohen do? Senior Lecturer Jeffrey Rayport discusses the options in his case, “Chewy.com (A).”

• 12 Jul 2022

Can the Foodservice Distribution Industry Recover from the Pandemic?

At the height of the pandemic in 2020, US Foods struggled, as restaurant and school closures reduced demand for foodservice distribution. The situation improved after the return of indoor dining and in-person learning, but an industry-wide shortage of truck drivers and warehouse staff hampered the foodservice distributor’s post-pandemic recovery. That left CEO Pietro Satriano to determine the best strategy to attract and retain essential workers, even as he was tasked with expanding the wholesale grocery store chain (CHEF’STORE) that US Foods launched during the pandemic lockdown. Harvard Business School Professor David E. Bell explores how post-pandemic supply chain challenges continue to affect the foodservice distribution industry in his case, “US Foods: Driving Post-Pandemic Success?”

• 05 Jul 2022
• What Do You Think?

Have We Seen the Peak of Just-in-Time Inventory Management?

Toyota and other companies have harnessed just-in-time inventory management to cut logistics costs and boost service. That is, until COVID-19 roiled global supply chains. Will we ever get back to the days of tighter inventory control? asks James Heskett. Open for comment; 0 Comments.

• 19 Oct 2021
• Research & Ideas

Fed Up Workers and Supply Woes: What's Next for Dollar Stores?

Willy Shih discusses how higher costs, shipping delays, and worker shortages are putting the dollar store business model to the test ahead of the critical holiday shopping season. Open for comment; 0 Comments.

• 26 Mar 2014

How Electronic Patient Records Can Slow Doctor Productivity

Electronic health records are sweeping through the medical field, but some doctors report a disturbing side effect. Instead of becoming more efficient, some practices are becoming less so. Robert Huckman's research explains why. Open for comment; 0 Comments.

• 11 Nov 2013
• Working Paper Summaries

Increased Speed Equals Increased Wait: The Impact of a Reduction in Emergency Department Ultrasound Order Processing Time

This study of ultrasound test orders in hospital emergency departments (EDs) shows that, paradoxically, increasing capacity in a service setting may not alleviate congestion, and can actually increase it due to increased resource use. Specifically, the study finds that reducing the time it takes to order an ultrasound counter intuitively increases patient throughput time as a result of increased ultrasound use without a corresponding increase in quality of care. Furthermore, the authors show that in the complex, interconnected system or hospitals, changes in resource capacity affects not only the patients who receive the additional resources, but also other patients who share the resource, in this case, radiology. These results highlight how demand can be influenced by capacity due to behavioral responses to changes in resource availability, and that this change in demand has far reaching effects on multiple types of patients. Interestingly, the increased ultrasound ordering capacity was achieved by removing what appeared to be a "wasteful" step in the process. However, the results suggest that the step may not have been wasteful as it reduced inefficient ultrasound orders. In healthcare, these results are very important as they provide an explanation for some of the ever-increasing costs: reducing congestion through increased capacity results in even more congestion due to higher resource use. Overall, the study suggests an operations-based solution of increasing the cost/difficulty of ordering discretionary but sometimes low-efficacy treatments to address the rise in healthcare spending. Therefore, to improve hospital performance it could be optimal to put into place "inefficiencies" to become more efficient. Key concepts include: A process improvement can inadvertently cause an increase in demand for a service as well as associated shared resources, which results in congestion, counter intuitively decreasing overall system performance. While individual patients and physicians may benefit from the reduced processing time, there can be unintended consequences for overall system performance. Closed for comment; 0 Comments.

• 25 Jan 2013

Why a Harvard Finance Instructor Went to the Kumbh Mela

Every 12 years, millions of Hindu pilgrims travel to the Indian city of Allahabad for the Kumbh Mela, the largest public gathering in the world. In this first-person account, Senior Lecturer John Macomber shares his first impressions and explains what he's doing there. Closed for comment; 0 Comments.

• 07 Aug 2012

Off and Running: Professors Comment on Olympics

The most difficult challenge at The Olympics is the behind-the-scenes efforts to actually get them up and running. Is it worth it? HBS professors Stephen A. Greyser, John D. Macomber, and John T. Gourville offer insights into the business behind the games. Open for comment; 0 Comments.

• 19 Oct 2010

The Impact of Supply Learning on Customer Demand: Model and Estimation Methodology

"Supply learning" is the process by which customers predict a company's ability to fulfill product orders in the future using information about how well the company fulfilled orders in the past. A new paper investigates how and whether a customer's assumptions about future supplier performance will affect the likelihood that the customer will order from that supplier in the future. Research, based on data from apparel manufacturer Hugo Boss, was conducted by Nathan Craig and Ananth Raman of Harvard Business School, and Nicole DeHoratius of the University of Portland. Key concepts include: Two key measures of supplier performance include "consistency", which is the likelihood that a company will continue to keep items in stock and meet demand, and "recovery", which is the likelihood that a company will deliver on time in spite of past stock-outs. Improvements in consistency and recovery are associated with increases in orders from retail customers. Increasing the level of service may lead to an increase in orders, even when the service level is already nearly perfect. Closed for comment; 0 Comments.

• 19 Jul 2010

How Mercadona Fixes Retail’s ’Last 10 Yards’ Problem

Spanish supermarket chain Mercadona offers aggressive pricing, yet high-touch customer service and above-average employee wages. What's its secret? The operations between loading dock and the customer's hands, says HBS professor Zeynep Ton. Key concepts include: The last 10 yards of the supply chain lies between the store's loading dock and the customer's hands. Poor operational decisions create unnecessary complications that lead to quality problems and lower labor productivity and, in general, make life hard for retail employees. Adopting Mercadona's approach requires a long-term view and a leader with a strong backbone. Closed for comment; 0 Comments.

• 12 Jul 2010

Rocket Science Retailing: A Practical Guide

How can retailers make the most of cutting-edge developments and emerging technologies? Book excerpt plus Q&A with HBS professor Ananth Raman, coauthor with Wharton professor Marshall Fisher of The New Science of Retailing: How Analytics Are Transforming the Supply Chain and Improving Performance. Key concepts include: Retailers can better identify and exploit hidden opportunities in the data they generate. Integrating new analytics within retail organizations is not easy. Raman outlines the typical barriers and a path to overcome them. Incentives must be aligned within organizations and in the supply chain. The first step is to identify the behavior you want to induce. To attract and retain the best employees, successful retailers empower them in specific ways. Closed for comment; 0 Comments.

• 05 Jul 2006

The Motion Picture Industry: Critical Issues in Practice, Current Research & New Research Directions

This paper reviews research and trends in three key areas of movie making: production, distribution, and exhibition. In the production process, the authors recommend risk management and portfolio management for studios, and explore talent compensation issues. Distribution trends show that box-office performance will increasingly depend on a small number of blockbusters, advertising spending will rise (but will cross different types of media), and the timing of releases (and DVDs) will become a bigger issue. As for exhibiting movies, trends show that more sophisticated exhibitors will emerge, contractual changes between distributor and exhibitors will change, and strategies for tickets prices may be reevaluated. Key concepts include: Business tools such as quantitative and qualitative research and market research should be applied to the decision-making process at earlier stages of development. Technological developments will continue to have unknown effects on every stage of the movie-making value chain (production, distribution, exhibition, consumption). Closed for comment; 0 Comments.

• 20 Dec 2004

How an Order Views Your Company

HBS Professors Benson Shapiro and Kash Rangan bring us up to date on their pioneering research that helped ignite today’s intense focus on the customer. The key? Know your order cycle management. Closed for comment; 0 Comments.

• 15 Apr 2002

In the Virtual Dressing Room Returns Are A Real Problem

That little red number looked smashing onscreen, but the puce caftan the delivery guy brought is just one more casualty of the online shopping battle. HBS professor Jan Hammond researches what the textile and apparel industries can do to curtail returns. Closed for comment; 0 Comments.

• 26 Nov 2001

How Toyota Turns Workers Into Problem Solvers

Toyota's reputation for sustaining high product quality is legendary. But the company's methods are not secret. So why can't other carmakers match Toyota's track record? HBS professor Steven Spear says it's all about problem solving. Closed for comment; 0 Comments.

• 19 Nov 2001

Wrapping Your Alliances In a World Wide Web

HBS professor Andrew McAfee researches how the Internet affects manufacturing and productivity and how business can team up to get the most out of technology. Closed for comment; 0 Comments.

• 22 Jan 2001

Control Your Inventory in a World of Lean Retailing

"Manufacturers of consumer goods are in the hot seat these days," the authors of this Harvard Business Review article remind readers. But there is no need to surrender to escalating costs of inventories. In this excerpt, they describe one new way to help lower inventory costs. Closed for comment; 0 Comments.

• 12 Oct 1999

Decoding the DNA of the Toyota Production System

How can one production operation be both rigidly scripted and enormously flexible? In this summary of an article from the Harvard Business Review, HBS Professors H. Kent Bowen and Steven Spear disclose the secret to Toyota's production success. The company's operations can be seen as a continuous series of controlled experiments: whenever Toyota defines a specification, it is establishing a hypothesis that is then tested through action. The workers, who have internalized this scientific-method approach, are stimulated to respond to problems as they appear; using data from the strictly defined experiment, they are able to adapt fluidly to changing circumstances. Closed for comment; 0 Comments.

Rapid Response: Inside the Retailing Revolution

A simple bar code scan at your local department store today launches a whirlwind of action: data is transmitted about the color, the size, and the style of the item to forecasters and production planners; distributors and suppliers are informed of the demand and the possible need to restock. All in the blink of an electronic eye. It wasn’t always this way, though. HBS Professor Janice Hammond has focused her recent research on the transformation of the apparel and textile industries from the classic, limited model to the new lean inventories and flexible manufacturing capabilities. Closed for comment; 0 Comments.

• Noatum Group
• Get to know us
• Recognition and awards
• Our history
• Certifications
• Maritime Containers
• Air Containers
• Conversion Tables
• Dangerous goods labels
• Goods tariff code

Freight Management

• Contract Logistics / Warehouse & Distribution
• Customs services
• International Supply Chain Management
• Project cargo logistics
• Reefer Logistics

Automotive & Aerospace

Chemical industry, construction.

• Consumer Electronics
• Industrial Manufacturing

Oil and Gas

• Pharma & Healthcare

Renewable Energy

Case studies.

• Location & Contact
• Our Leadership
• Maritime containers
• Air containers
• Get a quote

Home / Case Studies

Case Study – Air transport services for mining industry

Our client needed to transport a total of 8 cable reels of 23 tons each from Shanghai. The challenge was to make the shipment in the shortest possible time with reasonable costs.

Case Study – Air Charter for Healthcare

The start of the Covid-19 vaccination campaign was imminent and our client needed regular shipments of syringes from China, where the factory was located, to Peru so they could ensure the vaccination campaign ran smoothly.

Case study – Air charter for the mining sector

Our client needed to urgently ship two conveyor belts from Santiago de Chile to Lima. These conveyor belts are used to move the mineral extracted from the mine into the storage area. Due to their size and weight, more than 60 tonnes, it was necessary to study in detail what would be the best transport solution to deliver in the shortest possible time.

Case Study – Automotive logistics

To create a cost saving solutions with enhanced service levels, whilst maintaining existing structures and warehouse facilities.

Case Study – Retail logistics: LG Harris

When understanding the LG Harris supply chain requirements, Noatum Logistics quickly identified that their buying terms were CIF (cost, insurance, freight) across the majority of their supply base. This prevented shipment visibility for LG Harris until the goods arrived into port. Accounting for over 1,000 TEU per annum was a major headache. The supply chain model was completely reactive with little or no reporting or key-performance-indicator (KPI) management. This created high demurrage charges, inbound-inventory and stock-control challenges at the LG Harris distribution centre (DC) located in the Midlands (UK).

Case Study – Personal care logistics

The customer felt its supply chain was working fine. No pain, no need to change! However, having worked with Noatum Logistics in the past, and experienced improved operations, the new leader was willing to let us review the company’s pricing and route information on outbound shipments to the United States, Japan, Taiwan, Malaysia and Australia.

Case Study – Outdoor retailer logistics

The retailer faced major challenges with days-in-inventory and capacity at its distribution center (DC). Days-in-inventory time continued to increase over the prior five years The single distribution center experienced overly high storage levels, delays with unloading railcars and shipping containers, and an overall worsening in port-to-DC transit times (hovering around 40 days).

Case Study – Oil & Gas industry

With each unit weighing approximately 32,000 pounds, the company faced high shipping costs for the pumping units sourced from China.

Case Study – Oil and Gas logistics

The customer suspected they were being overcharged for shipping. They were not using freight forwarders, instead allowing manufacturers to arrange for the ocean-freight shipping of the oilfield equipment from China to Canada. Cargo was shipped using fixed load plans with no optimization for larger batches.

Case Study – Mining logistics

An initial assignment was for the movement of Autoclave and Flash Vessel pieces from their manufacturing plant, located 30 miles inland from the Shanghai port, to the mining project 90 miles east of Lima, Peru. The equipment pieces were over size and over weight, requiring special loading/unloading procedures; ocean, rail and ground transportation; and infrastructure modifications.

Case Study – High Tech logistics

With a significant segment of the semiconductor wafer foundry base moving to Asia, our customer decided to relocate operations closer to their end user. Our customer opened an equipment integration facility in Singapore near their customer who provides wafer fabrication equipment. Unfortunately, this move created an increase in real estate and labor costs, thus denying our customer the warehouse space to stage components for assembly and integration.

Case Study – Pharma&Healthcare logistics

Sourcing product from Korea, the customer initially used Noatum Logistics to assist with international freight forwarding and the custom clearance process for shipments to the U.S. As the customer grew their customer base and product offering, it was apparent their outsourced warehouse solution in the U.S. could not keep up with their needs. The end customers’ orders frequently required special packing, rush deliveries, and special project handling, straining the customer’s inventory management practices.

Case Study – Fashion industry logistics: Gant

Capitalise on the retail expertise and capabilities of Noatum Logistics, including our robust warehouse management technologies and local capacity. The benefits of greater inventory visibility and control would cascade into other supply chain functions including transportation, warehousing, distribution and customer service.

Case Study – Consumer Electronics logistics

A leading manufacturer of cell phone accessories was in a crisis. Issues with an overseas partner completely shut down their supply chain. They needed a new logistics services provider to quickly step in and get shipments moving. The manufacturer also recognized the need to rethink its supply chain to gain better control over vendors, reduce costs and achieve more efficient handling of orders.

Case Study – Apparel retailer logistics

A retail client of Noatum Logistics for international freight forwarding services sought additional assistance for improving control over its global supply chain. The client recognized that greater visibility to purchase orders and shipments would lead to better purchasing, transportation and distribution decisions.

Case Study – Industrial Manufacturing logistics

Our customer is a leading multinational manufacturer of automobiles and agricultural machinery. The company entered the U.S. market in 2000; since 2002, Noatum Logistics has handled the company’s customs brokerage at Noatum Logistics’ Houston branch.

Case Study – Fashion industry logistics

Founded in 1920, New Era Cap Company is an American headwear company headquartered in Buffalo, New York. Best known for being the official on-field cap for Major League Baseball, the official sideline cap for the National Football League, and the official on-court cap for the National Basketball Association.

Case Study – High tech firm

The customer, a global provider of secure IP/Ethernet switching solutions, sources products from South China and Taiwan for sales in the United States. They identified cost containment objectives and wanted to improve the overall performance of their supply chain.

Logistics Services

• Freight management

Logistics Solutions

Key industries.

• Automotive Logistics
• Chemicals Logistics
• Construction Logistics
• Fashion Logistics
• Food Logistics
• Furniture Logistics
• Mining Logistics
• Oil and Gas Logistics
• Retail Logistics
• Renewable Energy Logistics
• Case studies

Noatum Logistics is a company of Noatum group

Reach out: [email protected] Whistleblowing: Online portal

© Copyright 2024. All Rights Reserved.

• Livro de reclamaçoes
• Privacy Policy
• Legal notice
• All our business are subject to Noatum Logistics USA LLC Terms & Conditions

Select your country

Case Studies

Learn more about how omni logistics can help you..

Read some of our global case studies that give you a first hand look at how Omni Logistics has helped other companies succeed. Expect the best in comprehensive supply chain solutions. We’re ALL IN for our clients.

CASE STUDIES

Critical on-time delivery for international retail stores., increasing performance and reducing fines., regaining visibility to sustain in-stock performance., meeting the needs of a growing security technology company., a unique logistics solution for a unique electronics challenge., supply chain problem solving with life-giving results., are you ready to part of an all in team.

Please enter the following information:

Mach1 is now Omni Logistics

Mach 1 is now Omni Logistics! We look forward to offering a wide range of solutions and capabilities as part of the Omni team. You will now be redirected to the Omni Logistics website.

Privacy Overview

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

It’s Time to Rethink Your Global Logistics

• Willy C. Shih
• Adrien Foucault

The pandemic has overloaded companies’ usual shipping networks.

The initial supply and demand shocks caused by the pandemic were followed by an import surge as suppliers tried to replenish inventories, which threw normal transportation operations into turmoil. In the United States, this has included a lack of freight-handling capacity at Los Angeles and Long Beach ports, overloaded U.S. intermodal rail networks, and a lack of containers. But alternatives to established logistics networks exist. It’s time for companies to take advantage of them.

Over the last three decades, companies have established wide-ranging global supply chains that have taken advantage of steadily improving scale economies in global logistics. Efficient and reliable ocean and air cargo have linked low-cost manufacturing hubs across Asia with major markets in the United States and Europe. Much of this global sourcing was driven by the cost savings reaped through labor arbitrage, cost savings that were so dramatic that it more than covered the expense associated with moving products across vast distances to markets, or the extra cost of carrying inventory in long pipelines.

• Willy C. Shih is a Baker Foundation Professor of Management Practice at Harvard Business School.
• Adrien Foucault is an MBA student at Harvard Business School and has worked at maritime transport company CMA CGM.

Partner Center

Heart of Efficiency: 3 Logistics Case Studies that Show the Love

• February 13, 2024

This article dives into three compelling logistics case studies showcasing how MercuryGate enhances transportation management for three of our clients.

As we unwrap these stories, you’ll discover success stories conveying how logistics technology creates harmony in your complex supply chain.

Logistics Case Study #1: Using Analytics to Drive Operational Efficiency

• Significant Improvement in Timestamp Accuracy : Transitioning to MercuryGate’s platform increased timestamp accuracy from 60% to 89%.
• Increased On-Time Delivery Metrics : MercuryGate’s data-driven insights allowed more precise analysis of driver performance and operational procedures, leading to more efficient and accurate service delivery.
• Elevated Customer Service Ratings : MercuryGate’s solutions significantly increased customer service ratings — especially for on-time delivery.

Our SaaS video case study, available here , exemplifies how data-driven insights can lead to significant operational improvements and heightened customer experiences.

Logistics Case Study #2: Super Users Achieve TMS Eminence & Partner for Success

• Embracing Future-Ready Technology : By aligning with MercuryGate, this customer effectively evaluates and integrates various vendors, such as third-party payers or transportation tracking software, fostering a more comprehensive logistics solution.
• Combating Fraud with Advanced Logistics Technology : MercuryGate worked with this logistics provider to develop dynamic logic and validation workflows, ensuring carriers meet stringent criteria and safeguarding customer interests.
• Innovative Collaboration and Forward Thinking : The partnership’s focus on innovation and anticipating future needs led to significant advancements. By looking forward and not just relying on past builds, we push the boundaries of logistics technology.

This logistics case study is one of continuous improvement and adaptation. It illustrates how a deep understanding of each partner’s capabilities and needs can lead to remarkable success. Our customer’s transformation underlines the importance of embracing logistics technology to stay ahead in the dynamic world of transportation management. Watch the complete case study here .

Logistics Case Study #3: Navigating Intermodal Transportation

• Integration with Third-Party Providers : MercuryGate’s platform facilitated integration, including rates and schedules, bid creation to execution, and tracking and tracing equipment on the rails, enhancing overall operational efficiency.
• Streamlined Billing Capabilities : MercuryGate’s SaaS logistics technology platform solves billing complexities associated with boxcar movements, demonstrating its versatility and adaptability to stringent intermodal billing requirements.

This collaboration is comparable to finding the perfect Valentine, where the “matchmaking” of technology with logistics needs dramatically increased efficiency. Watch the video case study here .

Calculate your potential Saving While Using an enterprise TMS

Mercurygate’s impact: a story of innovation and partnership.

In conclusion, to commemorate Valentine’s Day, let’s celebrate the partnerships, innovations, and technological advancements that transform logistics. If these stories of transformation inspire you, imagine what MercuryGate can do for your business. Schedule a demo and take the first step toward becoming our next success story in logistics innovation.

And add one more delighted customer to our list of logistics case studies to find out how we help Facil improve transportation visibility. Download it today and find out how much this MercuryGate user loves our solutions.

Subscribe To The MercuryGate Blog

Related resources, is it time for an enterprise transportation management system.

The Dual Power of Visibility and Supply Chain Execution

Cold Chain Transportation Capacity Procurement and Management

TMS Incumbent or Enterprise Solution? Why an Incumbent Software Provider Might Not be In Your Best Interest

More Resources

Find out why our logistics technology users feel the love

Basics — Exercises — Case Studies

• © 2013
• Harald Gleissner 0 ,
• J. Christian Femerling 1

Berlin School of Economics and Law, Berlin, Germany

You can also search for this author in PubMed   Google Scholar

Investa Holding GmbH, Eschborn, Germany

• Offers a broad range of exercises and case studies
• Written by authors with outstanding logistics industry practice and teaching experience
• Suitable complementary case study book is available
• Includes supplementary material: sn.pub/extras

Part of the book series: Springer Texts in Business and Economics (STBE)

1.75m Accesses

27 Citations

12 Altmetric

This is a preview of subscription content, log in via an institution to check access.

Access this book

Subscribe and save.

• Get 10 units per month
• Download Article/Chapter or eBook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime
• Available as EPUB and PDF
• Read on any device
• Instant download
• Own it forever
• Compact, lightweight edition
• Dispatched in 3 to 5 business days
• Free shipping worldwide - see info
• Durable hardcover edition

Tax calculation will be finalised at checkout

Other ways to access

Licence this eBook for your library

Institutional subscriptions

About this book

Logistics is the ideal book for Bachelor students of logistics, providing a solid foundation as well as a practical guide. In modular and clear form, it explains key concepts, principles, and practices of logistics. Learning objectives as well as several case studies are integrated into each chapter. 

It features chapters on Principles of Logistics; Logistics Systems; Transport Systems and Logistics Services; Warehousing, Handling and Picking Systems; Inventory, Stock and Provisioning Management; Logistics Network Planning; IT in Logistics; and Logistics Controlling.  

In addition, the second fully updated German edition has been extended by the chapters Logistics Infrastructure and Investment and Financing in Logistics. 

“This book offers, in a very clear and concise manner, access to fundamental management topics of modern logistics. Well-chosen case studies serve to illustrate best practice solutions.”

Professor Peter Klaus, member of Logistics Hall of Fame

”This new textbook facilitates a comprehensive and easy-to-grasp insight into the complex subject area of logistics. The authors have succeeded in presenting a good mix of theoretical foundation and practical application. Due to its clear structure and extensive range of topics, this book is highly suitable not only for students, but also for practitioners.”

Bernhard Simon, Managing Director, DACHSER GmbH & Co. KG

Similar content being viewed by others

Logistics Modeling in the 1980’s: A Decade of Challenges

City Logistics

Logistics Controlling

• Supply Chain Management
• Transport Systems
• Warehousing
• Engineering Economics

Table of contents (14 chapters)

Front matter, introduction.

• Harald Gleissner, J. Christian Femerling

The Principles of Logistics

Logistics systems, logistical infrastructure, transport systems and logistics services, warehousing, handling, and picking systems, inventory, stock and provisioning management, logistics network planning, it in logistics, investment and financing in logistics, business models and industry solutions, outline solutions to case studies, back matter, authors and affiliations.

Harald Gleissner

J. Christian Femerling

About the authors

Bibliographic information.

Book Title : Logistics

Book Subtitle : Basics — Exercises — Case Studies

Authors : Harald Gleissner, J. Christian Femerling

Series Title : Springer Texts in Business and Economics

DOI : https://doi.org/10.1007/978-3-319-01769-3

Publisher : Springer Cham

eBook Packages : Business and Economics , Business and Management (R0)

Copyright Information : Springer Nature Switzerland AG 2013

Hardcover ISBN : 978-3-319-01768-6 Published: 19 February 2014

Softcover ISBN : 978-3-319-34743-1 Published: 03 September 2016

eBook ISBN : 978-3-319-01769-3 Published: 11 February 2014

Series ISSN : 2192-4333

Series E-ISSN : 2192-4341

Edition Number : 1

Number of Pages : XXI, 311

Number of Illustrations : 156 b/w illustrations

Topics : Operations Management , Engineering Economics, Organization, Logistics, Marketing , Organization

• Publish with us

Policies and ethics

• Find a journal
• Track your research

MBA Knowledge Base

Business • Management • Technology

Home » Management Case Studies » Case Study: Wal-Mart’s Distribution and Logistics System

Case Study: Wal-Mart’s Distribution and Logistics System

As the world’s largest retailer with net sales of almost $419 billion for the fiscal year 2011, Wal-Mart is considered a “best-in-class” company for its supply chain management practices . These practices are a key competitive advantage that have enabled Wal-Mart to achieve leadership in the retail industry through a focus on increasing operational efficiency and on customer needs. Wal-Mart’s corporate website calls “logistics” and “distribution” the heart of its operation, one that keeps millions of products moving to customers every day of the year.

Wal-Mart’s highly-automated distribution centers, which operate 24 hours a day and are served by Wal-Mart’s truck fleet, are the foundation of its growth strategy and supply network. In the United States alone, the company has more than 40 regional distribution centers for import flow and more than 140 distribution centers for domestic flow. When entering a new geographic arena, the company first determines if the area will be able to contain enough stores to support a distribution center. Each distribution center supports between 75 to 100 retail stores within a 250-mile area. Once a center is built, stores are gradually built around it to saturate the area and the distribution network is realigned to maximize efficiencies through a process termed “reoptimization”. The result is a “trickle-down” effect: trucks do not have to travel as far to retail stores to make deliveries, shorter distances reduce transportation costs and lead time, and shorter lead time means holding less safety inventory. If shortages do occur, replenishment can be made more quickly because stores receive daily deliveries from distribution centers.

An important feature of Wal-Mart’s logistics infrastructure was its fast and responsive transportation system. The distribution centers were serviced by more than 3,500 company owned trucks. These dedicated truck fleets allowed the company to ship goods from the distribution centers to the stores within two days and replenish the store shelves twice a week. The truck fleet was the visible link between the stores and distribution centers. Wal-Mart believed that it needed drivers who were committed and dedicated to customer service. The company hired only experienced drivers who had driven more than 300,000 accident-free miles, with no major traffic violation.

Wal-Mart truck drivers generally moved the merchandise-loaded trailers from Wal-Mart distribution centers to the retail stores serviced by each distribution center. These retail stores were considered as customers by the distribution centers. The drivers had to report their hours of service to a coordinator daily. The coordinator scheduled all dispatches depending on the available driving time and the estimated time for travel between the distribution centers and the retail stores. The coordinator informed the driver of his dispatches, either on the driver’s arrival at the distribution center or on his return to the distribution center from the retail store. The driver was usually expected to take a loaded truck trailer from the distribution center to the retail store and return back with an empty trailer. He had to dispatch a loaded truck trailer at the retail store and spend the night there. A driver had to bring the trailer at the dock of a store only at its scheduled unloading time, no matter when he arrived at the store. The drivers delivered the trailers in the afternoon and evening hours and they would be unloaded at the store at nights. There was a gap of two hours between unloading of each trailer. For instance, if a store received three trailers, the first one would be unloaded at midnight (12 AM), the second one would be unloaded at 2 AM and the third one at 4 AM. Although, the trailers were left unattended, they were secured by the drivers, until the store personnel took charge of them at night. Wal-Mart received more trailers than they had docks, due to their large volume of business.

To make its distribution process more efficient, Wal-Mart also made use of a logistics technique known as ‘cross-docking.’ In this system, the finished goods were directly picked up from the manufacturing plant of a supplier, sorted out and then directly supplied to the customers. The system reduced the handling and storage of finished goods, virtually eliminating the role of the distribution centers and stores. There were five types of cross-docking.

• Opportunistic Cross docking – In this method of cross docking, the exact information about where the necessary good should be shipped and from where it should be procured and exact quantity which will be sent was necessary. This method of cross docking has allowed the company to ship directly the goods, necessary retail clients, not storing them in warehouse bins or shelves. Opportunistic cross docking could also be used when the warehouse software of management installed by the retailer, has set ready it, that the specific product was ready to moving and could be moved immediately.
• Flow-through Cross docking – In this type of cross docking, there was a constant inflow and outflow of the goods from the distribution center. This type of cross docking was mostly suitable for the perishable goods which had very short interval of time, or the goods which were difficult to be kept in warehouses. This cross docking system was mainly accompanied by supermarkets and other retail discount stores, especially for perishable items.
• Distributor Cross docking – In this type of cross docking, the manufacturer has delivered the goods to directly to retailer. No intermediaries have been involved in this process. It has allowed the retailer to save a major portion of the expenses in the form of storage. As the retailer should not support the distribution center for storage various kinds of the goods, he has helped it to save warehouse costs. The lead time for the delivery of goods from the manufacturer to the consumer was also drastically reduced. However, this method had some disadvantages too. Expenses of transportation both for the manufacturer and for the retailer tended to increase during time when the goods have been required to be transported to different locations several times. Besides, the transportation system should be very fast. Otherwise, the purpose of cross docking has been lost. The transportation system should be also highly responsive and to take the responsibility for delays in delivery of the goods. The retailer was at a greater risk. He has lost that advantage to sharing risks with the manufacturer. This type of cross docking was suitable only for those retailers who had the big distributive network and could be used in situations when goods had to be delivered in a short span of time.
• Manufacturing Cross docking – In Manufacturing cross docking, these cross docking facilities served the factories and acted as temporary and “mini warehouses.” Whenever a manufacturing company required some parts or materials for manufacturing a particular product, it was delivered by the supplier in small lots within a very short span of time, just when it was needed. This helped reduce the transportation and warehouse costs substantially.
• Pre-Allocated Cross Docking – Pre-allocated cross docking is very much like the usual cross-docking, except that in this type of cross docking, the goods are already packed and labeled by the manufacturer and it is ready for shipment to the distribution center from where it is sent to the store. The goods can be delivered by the distribution center directly to the store without opening the pack of the manufacturer and re-packing the goods. The store can then deliver the goods directly to the consumer without any further repacking. Goods received by the distribution center or the store are directly sent into the outbound shipping truck, to be delivered to the consumer, without altering the package of the good. Cross docking requires very close co-ordination and co-operation of the manufacturers, warehouse personnel and the stores personnel. Goods can be easily and quickly delivered only when accurate information is available readily. The information can be managed with the help of Electronic Data Interchange (EDI) and other general sales information.

In cross docking, requisitions received for different goods from a store were converted into purchase or procurement orders. These purchase orders were then forwarded to the manufacturers who conveyed their ability or inability to supply the goods within a particular period of time. In cases where the manufacturer agreed to supply the required goods within the specified time, the goods were directly forwarded to a place called the staging area. The goods were packed here according to the orders received from different stores and then directly sent to the respective customers. To gain maximum out of cross-docking, Wal-Mart had to make fundamental changes in its approach to managerial control . Traditionally, decisions about merchandising, pricing and promotions had been highly centralized and were generally taken at the corporate level. The crossdocking system, however, changed this practice. The system shifted the focus from “supply chain” to the “demand chain,” which meant that instead of the retailer ‘pushing’ products into the system; customers could ‘pull’ products, when and where they needed. This approach placed a premium on frequent, informal cooperation among stores, distribution centers and suppliers with far less centralized control than earlier.

Another reason that Wal-Mart’s prices are so competitive is because they buy in such large quantities that transportation from one end of the supply chain to another is not as expensive for additional units. This aspect of the logistical system does not come from skill or expertise it simply comes from the sheer size of the company, but this is still a factor. On the other hand, the Wal-Mart buys so many supplies from different places throughout the world, that they have the luxury of using bigger trucks and using less fuel to go back and forth. Also if by chance they have to use shipping services to transport material from one location to another, Wal-Mart will give them so much business that they will get huge discounts.

On the whole, the logistical system that Wal-Mart uses is so effective because it is so flexible. This is why Wal-Mart is able to offer things much cheaper than other companies can.

About Wal-mart Stores

Related posts:.

• Case Study: Wal-Marts Competitive Advantage
• Case Study: Wal-Mart’s Failure in Germany
• Case Study: Business Strategy Analysis of Wal-Mart
• Case Study: An Assessment of Wal-Mart’s Global Expansion Strategy
• Case Study of Walmart: Procurement and Distribution
• Use of Logistics Channel and Public and Private Distribution Facilities – For Material Sources
• Case Study of FedEx: Pioneer of Internet Business in the Global Transportation and Logistics Industry
• Distribution Center Decisions
• Case Study: Strategy of Ryanair
• Case Study: How Netflix Took Down Blockbuster

One thought on “ Case Study: Wal-Mart’s Distribution and Logistics System ”

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

This site uses cookies to improve your experience. By viewing our content, you are accepting the use of cookies. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country we will assume you are from the United States. View our privacy policy and terms of use.

• Materials Handling
• Tracking and Tracing

Easy Supply Chain Savings: A Simple Supply Chain Case Study

Logistics Bureau

AUGUST 31, 2021

Supply Chain & Logistics case studies are always interesting. This one is about easy ways to save money in your Supply Chain and Logistics operations if you just look at things differently. Maybe you have some similar examples you can share in the comments? And it was an easy problem to fix!

Transloading: A Comprehensive Guide With Client Examples

Dedola Global Logistics

JANUARY 14, 2023

Transloading: A Comprehensive Guide With Client Examples . For example , a shipment of heavy machinery may be transferred from a cargo ship to a truck using a break-bulk method, with the machinery being stored temporarily in a warehouse before being loaded onto the truck for the final leg of the journey. Contact Us. 562) 594-8988.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

• The Logistics of Logistics
• Supply Chain and Logistics

Modex meets Comicon: BlueGrace Logistics releases “Logistics Powers Unleashed!” comic book

Blue Grace Logistics

MARCH 12, 2024

BlueGrace Releases Comic Book Show Submenu Resources The Logistics Blog® Newsroom Whitepaper Case Study Webinars Indexes Search Search BlueGrace Logistics - March 12, 2024 DC Velocity Staff | DC Velocity March 12, 2024 Move over Marvel, BlueGrace Logistics has entered the comic book market.

IoT in Logistics “The Maersk Case Study”

Logistics at MPEPS at UPV

MARCH 15, 2021

According to the article “ How IoT can improve the logistic pro ces s ” the internet of things (IoT) provides data, which describes objects “physical assets” for example a good to be transported and distributed worldwide. Now we can see how they implemented the “IoT” to deliver a better service.

Real-Time Trackers: A Welcome Labor Solution for Logistics

Advertisement

The labor market is under an unprecedented squeeze, and the logistics industry has been hit particularly hard by the “Great Resignation.” Why streamlining data simplifies the logistics role. According to Deloitte and The Manufacturing Institute, the labor shortage will cost the U.S. as much as $1 trillion, and 2.1

Transloading: A Comprehensive Guide With Client Examples Transloading is a process that involves transferring cargo from one mode of transportation to another during the shipping process. This case study will delve into some of our most notable transloading success stories.

ARL Logistics Achieves Day-to-Day Rate Positioning and Value Through SONAR

FreightWaves SONAR

DECEMBER 17, 2020

View the Full Case Study . Working as both an asset-based and non-asset-based broker, ARL Logistics unlocks new value, profitability and strong growth by using FreightWaves SONAR. And ARL Logistics upholds that commitment with a promise to honor the quote regardless of whether profits are gained. View the Full Case Study .

BASF Video Case Study: The Value of Real-Time Freight Visibility

Talking Logistics

MAY 3, 2018

In addition to improved customer satisfaction, Wehrle shared these examples : The data we’re getting has been hugely successful. The post BASF Video Case Study : The Value of Real-Time Freight Visibility appeared first on Talking Logistics with Adrian Gonzalez. Benefits of Real-Time Freight Visibility.

Cost to Serve Case Study that was Off the Scale! – with Steven Thacker

JULY 21, 2020

With us is Steven Thacker, Rob’s fellow director in Logistics Bureau is sharing his insights on this topic. A Great Example . Let us watch the video below: Related articles on this topic have appeared throughout our websites, why not check them out? Robobyrne: Cost To Serve Lesson. Supply Chain Secrets: What is Cost to Serve? –

Case Study: Advanced Planning & Scheduling at Leuze Electronic

Logistics Business Magazine

MAY 18, 2020

It provided comparatively basic forecasting procedures that made it possible to establish current levels of delivery readiness and to set defaults, for example at least 95%. The post Case Study : Advanced Planning & Scheduling at Leuze Electronic appeared first on Logistics Business® Magazine.

RFID Case Study: Can a Supply Chain be Digitised?

MAY 27, 2020

Logistical challenges were normally solved using barcode-based systems. For example , the automated KanBan shelf was implemented successfully and cost-effectively into the system landscape. The post RFID Case Study : Can a Supply Chain be Digitised? appeared first on Logistics Business® Magazine.

Supply Chain Profit Leaks in Real-Life

NOVEMBER 15, 2022

Here’s a real-life example . 7 Mini Case Studies : Successful Supply Chain Cost Reduction and Management. How to identify and fix your profit leaks? Related articles on this topic have appeared throughout our website, check them out: Cost to Serve – A Smarter Way to Improved Supply Chain Profitability.

Examples of How Supplier Quality Management System Implementations Pay Off

GlobalTranz

JUNE 11, 2015

We conclude our series on supplier quality management (SQM) today with a look at some case studies and examples of benefits derived from the application of a supplier quality management system. Examples and Case Studies from the Implementation of a Supplier Quality Management System.

[PODCAST] The Growing “Influence” of Content Marketing in the Supply Chain

MARCH 3, 2020

Business and Marketing Resources Marketing Logistics Services: A Discussion on Getting Attention Online Listen to the Podcast Example of an Effective Transportation Management Case Study View Case Study How Industrial Companies Can Pivot to Inbound Organizations & Increase Customer Experience Listen.read More.

Understanding the Profitability of Omnichannel Retail is a Problem

Logistics Viewpoints

NOVEMBER 20, 2023

But one thing you notice as you go to omnichannel software vendor’s web sites and examine customer case studies , the case studies may talk about retailers growing their revenues by 100% or more, but none talk about how much profitability grew. These new order fulfillment paths allowed retailers to rapidly grow sales.

Case Study: Bringing Symphonic Listening Pleasure to Japan

NOVEMBER 29, 2018

The case of an internationally renowned symphonic orchestra from Austria, for which cargo-partner transported all instruments to Japan, represents one example of such a challenge which cargo-partner solved without issue.

Case Study: Picnic for Pie Maker Thanks to Aisle Master

NOVEMBER 1, 2019

The Aisle Master models have replaced a stand-on stacker truck and a counterbalance forklift and a main reason for the choice of these was their ability to “do everything” as Logistics Manager Dean Parsons explains. The post Case Study : Picnic for Pie Maker Thanks to Aisle Master appeared first on Logistics Business® Magazine.

Case Study: Helly Hansen opts for UniCarriers once more

OCTOBER 1, 2019

Helly Hansen thus benefits from a modern fleet which meets its requirements and provides an optimum logistics framework for the coming years. Our partner is also highly flexible if we need additional forklifts to deal with spikes in orders, for example . “We were bursting at the seams at our old location.

Case Study: Wood Wholesaler Likes Hyster Durability

OCTOBER 23, 2018

17 Hyster® forklift trucks for logistics . The extensive company premises, including the warehouses, have particular logistics demands. A total of 17 Hyster® trucks form the backbone of the logistics operation and since 2010, the fleet has gradually switched from diesel to LPG fuel. . Low total cost of ownership. ” Tweet.

AI and the logistics of disaster

OCTOBER 3, 2022

Natural disasters, such as the recent hurricanes which devastated Puerto Rico (Fiona) and Florida (Ian), are serving up real-life case studies demonstrating how artificial intelligence, or AI, is helping to improve supply chain reliability in the face of horrific storms, writes Vaughn Moore, Executive Chairman and CEO of AIT Worldwide Logistics .

Case Study: Hubtex Sideloaders Optimize Space and Storage

MAY 8, 2019

Effective materials handling and warehouse management is crucial to the success of a company, which is why Gaugler & Lutz oHG is banking on an intelligent storage system at its new logistics centre in Aalen-Ebnat (Nord) in Germany. These materials are used, for example , to strengthen wind turbine rotor blades.

Case Study: Tote Sortation Project for Leading Car Maker

AUGUST 30, 2018

If the roller conveyor cannot sort the tote because, for example , it is unable to read the colour of the tote or the sortation chutes are full, the tote will carry on round the conveyor and is moved via a cross transfer so that the opposite side of the tote is presented for scanning. The remainder of the chutes sort the totes by colour only.

Case Study: Viennese Brewery Uses Fronius Battery Charging

JULY 31, 2019

The covered storage area spreads over 10,000 square metres, meaning that seamless logistics processes are required to make sure that deliveries arrive with customers on time. A dry, frost-free and cool environment is required for example , as well as sufficient ventilation and measures to prevent fires and explosions.

Case Study: Handling the Tough Wood Supply Chain

AUGUST 21, 2018

Consider the journey of a laminate floorboard, for example .”. For example , due to the vapours produced by chemicals being used to laminate the wood, and the dust present in the atmosphere, parts of the production line may be zoned areas. For example , Zone 1 or 2 for gases, Zone 21 or 22 for dusts, or a combination of gas and dust.

Case Study: EnerSys and Unicarriers Make Dutch Fleet More Sustainable

OCTOBER 23, 2019

Good internal transport is essential for us,” says Cecile van Daalen, responsible for Desch Plantpak’s logistics , among other things. Our drivers can now connect their trucks to the charging station during their coffee break, for example , so that we can continue operating throughout the hours needed,” Mr Langenberg says.

Case Study: Why UK Ports and Shipping Firm Chose Hyundai

MAY 30, 2019

For example , wood pulp requires bale clamps, paper reels need reel clamps in addition to some specialised tissue clamps. The post Case Study : Why UK Ports and Shipping Firm Chose Hyundai appeared first on Logistics Business® Magazine. For other cargos, such as palletised goods, we would use the standard forks.

[PODCAST] Improving Trucking Marketing & How to Work with Industry Influencers

NOVEMBER 12, 2019

6 Things to Look for in a Third-Party Logistics (3PL) Partner

Now, That's Logistics

NOVEMBER 30, 2021

Integrated with an organization’s warehousing, fulfillment and transportation activities, third-party logistics providers (3PLs) support a wide range of logistics activities for companies across all industries. Logistics providers offer a variety of different services for a wide range of companies. 6 Things to Look for in a 3PL.

Managed Logistics Meets Five Challenges for Complex Supply Chain Operations

SEPTEMBER 15, 2022

Managed Logistics Meets Five Challenges for Complex Supply Chain Operations Show Submenu Resources. The Logistics Blog®. Case Study . BlueGrace Logistics . Sponsored by BlueGrace Logistics . They can make or break a business, which is why they require the dedicated focus of a managed logistics provider (MLP).

Walmart in a World on Fire

NOVEMBER 15, 2021

One of the companies she holds up as a positive example of a big company addressing environmental, social, and governance (ESG) issues is Walmart. A few years ago, for example , my oldest child explained to me that Walmart was a malignant force. The post Walmart in a World on Fire appeared first on Logistics Viewpoints.

Turvo’s Collaborative TMS Paved the Way for Port X Logistics to Triple Growth

DECEMBER 10, 2021

Turvo’s Collaborative TMS Paved the way for Port X Logistics to Triple Growth The past two years have created a series of hurdles and obstacles for the global supply chain. In spite of all of this, Port X Logistics is experiencing significant and unprecedented growth thanks to Turvo TMS and Collaboration Cloud. Ask Turvo for a Demo.

Solutions for Managing Transportation Spend [Video]

JULY 26, 2018

Can you give some examples of tactical and strategic questions that companies should be exploring? Can you share some case study examples and the benefits your clients have achieved? How do you go about analyzing these options and determining whether they’re the right actions to take? What’s required to get started?

Navigating the Loading Bay’s Hidden Risks

APRIL 26, 2024

Transport and logistics is a highly regulated industry when it comes to health and safety, writes Wouter Satijn (pictured), Sales Director of Joloda Hydraroll. This means transport and logistics companies must constantly be on the lookout for new risks, and proactive ways to improve and implement better working practices.

How We Use Data to Better Plan for Produce Season

MARCH 26, 2024

Take, for example , the market of Twin Falls, Idaho in comparison to Lakeland, Florida. trillion in annual global supply chain data, SONAR is more effective in both broad and pinpoint logistics applications. To see how other organizations are implimenting SONAR, check out case studies here.

2023’s Freight Forwarding and Project Cargo: The Big Shifts We’re Buzzing About!

MTS Logistics

AUGUST 21, 2023

Navigating the vast expanse of 2023, the logistics landscape is echoing with transformative shifts. Embracing the Digital Wave: The marriage of the digital realm with tangible logistics is not just a fleeting trend—it’s the new norm. Example : Consider the Suez Canal obstruction.

Prologis launches social value white paper

OCTOBER 26, 2022

Prologis UK and Tritax, two of the biggest names in logistics property development , have joined forces to publish a report designed to inspire other businesses in the construction and logistics sectors to take a more proactive approach to delivering social value. CLICK HERE to download the report.

Sitma named “outstanding company” by Kotler

DECEMBER 3, 2021

Sitma, a specialist in designing and producing solutions for automation in the logistics industry, has been chosen as a case study for the book Essentials of Modern Marketing by Philip Kotler together with Weevo, which looked at more than 30 examples of outstanding Italian companies in different fields of production.

Freight Claims 101

APRIL 20, 2023

Freight Claims 101 Show Submenu Resources The Logistics Blog® News Press Whitepaper Case Study Webinars Indexes Search Search BlueGrace Logistics - April 20, 2023 Freight claims are an inevitable aspect of shipping cargo. Mitigation is legally required on all claims.

What is Inbound Logistics and How Can a 3PL Help?

Kanban Logistics

AUGUST 13, 2020

What is inbound logistics ? See, there’s a big difference between handling inbound logistics yourself and outsourcing it to a trusted North Carolina third-party logistics (3PL) provider that knows the manufacturing industry. What is inbound logistics ? 3PL inbound logistics services. Just in time (JIT) delivery.

THE ENVIRONMENTAL IMPACT OF FOOD DELIVERY

MAY 28, 2023

This is the case of delivery companies, which had to expand their operations due to the increase in demand for home deliveries, especially food. For example , in the case of Just Eat, Glovo or Deliveroo in Spain, they each added more than 1,000 new restaurants in just three months. CherretT, T., Piotrowska, M., Chelitis, K.,

Private Investors Looking to Capitalize on Nearshoring Trends Turn to Mexico

APRIL 28, 2023

companies opening factories in Mexico, for example , nor investment in private real estate. Mexico-Canada Agreement, according to Jill Raker, a managing partner at longtime logistics investor Greenbriar Equity Group. We have enough data points from the logistics companies we own and the logistics companies we’re talking to,” she said.

Longer-term Contracts Back in Vogue as Carriers, Shippers Navigate Stable Market

OCTOBER 10, 2023

Shippers Navigate Stable Market Show Submenu Resources The Logistics Blog® Newsroom Whitepaper Case Study Webinars Indexes Search Search BlueGrace Logistics - October 10, 2023 Many of the concerns from earlier this year have dissipated and shippers are beginning to look for lengthier contracts with stable rates.

Evans Adopts New Virtual Private Cloud for Security & Efficiency

3PL Insights

MARCH 17, 2021

As the demand for faster shipping pushes businesses to find innovative ways to fulfill orders, third-party logistics companies like Evans Distribution Systems are adopting new technologies to ensure a seamless and secure supply chain. What is a Virtual Private Cloud? Cloud storage is the ability to store data or files on an off-site server.

Stay Connected

Join 84,000+ Insiders by signing up for our newsletter

• Participate in Logistics Brief
• Add a Source
• Add a Resource
• 2019 Logistics Brief MVP Awards
• 2020 Logistics Brief MVP Awards
• 2021 Logistics Brief MVP Awards
• 2022 Logistics Brief MVP Awards
• Mon. Aug 19
• Sun. Aug 18
• Sat. Aug 17
• Fri. Aug 16
• Aug 10 - Aug 16
• Supply Chains
• Distribution
• Transportation
• More Topics 

Input your email to sign up, or if you already have an account, log in here!

Enter your email address to reset your password. a temporary password will be e‑mailed to you., be in the know on, logistics brief.

Expert insights. Personalized for you.

We organize all of the trending information in your field so you don't have to. Join 84,000+ users and stay up to date on the latest articles your peers are reading.

Get the good stuff

Subscribe to the following Logistics Brief newsletters:

You must accept the Privacy Policy and Terms & Conditions to proceed.

You know about us, now we want to get to know you!

Check your mail, we've sent an email to . please verify that you have received the email..

We have resent the email to

Let's personalize your content

Use social media to find articles.

We can use your profile and the content you share to understand your interests and provide content that is just for you.

Turn this off at any time. Your social media activity always remains private.

Let's get even more personalized

Choose topics that interest you., so, what do you do.

Are you sure you want to cancel your subscriptions?

Cancel my subscriptions

Don't cancel my subscriptions

Changing Country?

Accept terms & conditions.

It looks like you are changing your country/region of residence. In order to receive our emails, you must expressly agree. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails.

You appear to have previously removed your acceptance of the Terms & Conditions.

We noticed that you changed your country/region of residence; congratulations! In order to make this change, you must accept the Aggregage Terms and Conditions and Privacy Policy. Once you've accepted, then you will be able to choose which emails to receive from each site .

You must choose one option

Please choose which emails to receive from each site .

• Update All Sites
• Update Each Site

Please verify your previous choices for all sites

Sites have been updated - click Submit All Changes below to save your changes.

We recognize your account from another site in our network , please click 'Send Email' below to continue with verifying your account and setting a password.

You must accept the Privacy Policy and Terms & Conditions to proceed.

This is not me

Transform your last mile with personalized, actionable insights in just seven minutes. Take our Assessment >

Meet us in-person or virtually at these events, locus exclusive webinar series, upcoming roundtable discussions, locus in the news, watch our videos, infographics.

• Case Studies
• Whitepapers

Partner With Us to Solve Your Logistics Problems

How to eliminate human dependency in Retail/FMCG Sales Beat Planning

Streamlining the FMCG Distribution Supply Chain with a Comprehensive TMS Solution

How can FMCG players utilize sales reps more effectively

How to optimize various legs of the FMCG supply chain?

How Locus Enhanced End-to-End Operational Efficiency for this Indonesian Manufacturing Giant

Optimizing Indonesia’s Growing Cold Chain Businesses

Enabling unparalleled on-site customer service at scale

How to increase operational efficiencies in E-commerce

How to increase visibility for on-demand pharma companies?

Enabling customer satisfaction through smart logistics in E-grocery

How to reduce manual shipment processes for courier services?

Delve into the world of logistics here.

Smart Change as a Catalyst for All-Mile Retail Innovation

The Logistics of Furniture Retail

Holiday Season Trends That Will Shape the Retail Supply Chain Industry

A Look at the Future of Grocery Retail in North America

A Comprehensive Guide to Effective Returns Management

Buying vs. Building Logistics Software: How to Choose?

Evolution of Healthcare Supply Chain and the Importance of Logistics Tech

The Future is Now: Why Transportation Management Systems are Indispensable to Growth in Logistics

Last-mile Delivery: Finding the Right Balance

Hope Comes In the Form of AI for Big-Box Stores

Transform your wholesale distribution supply chain with logistics tech

How to Optimize Your Business Using Territory Planning

Optimize Cannabis Delivery Operations

Digital Twins — Transforming the Supply Chain

Micro-Fulfillment Centers are Shaping Up the Future of E-Grocery Deliveries

The Final Frontier: Designing an optimal cold chain network to distribute the COVID-19 Vaccine

Captive vs Outsourced Fleet: Math behind Transportation and Distribution

How to Keep the Promise of Same-Day Grocery Delivery Amidst COVID-19

Post-Pandemic Sustainability: What lies ahead of the Supply Chain Industry

The Role of AI-powered Logistics in E-commerce 4.0

COVID-19 and Supply Chain: Disruptions and Actions

Artificial Intelligence: The solution for supply chain problems in the Engineering Industry

How Locus automated logistics operations for Indonesia’s leading E-commerce player

How Locus is managing customer-preferred time windows for its clients

Multi-Echelon SupplyChain Inventory Optimization – A mathematical perspective

How Locus filled the gaps in the supply chain of Southeast Asia’s largest e-commerce player

FMCG Insight Report II

The Future Of Sales Transformation : Dynamic PJP

Locus’ Guide To Omnichannel Fulfilment

FMCG Sales Beat - Insight Report

Why Businesses need Route Optimization?

Long reads on logistics and technology.

How Smart Tech Can Help With Fulfillment for Multi-Brand Retailers

Big and Bulky Retail Shipments - Seamless Delivery Regardless of Size

The Retail Playbook For Thriving in an Omnichannel World

Middle East Bottled Water Manufacturers: Last-mile Delivery Strategies

Revolutionizing Every Mile: A New Era in the Paint Industry

Efficient Shipping Solution to Automate Your Carrier Selection

Establish Your Right To Win: The Definitive CEP Playbook for Profitability

Why You Should Choose Carbon Neutral Shipping Today

Here's How ONDC Will Create a Level-Playing Field for Businesses

How a Dispatch Management Platform Optimizes Your Last-mile

Locus' Guide to Quick Commerce Fulfillment

[E-book] The Complete Guide to Same-Day Delivery

The New Fulfillment Models in Logistics

Supply Chain Sustainability and Profitability with Green Logistics

Direct to Consumer- The trend of the future

Home Services in 2020 and the Changing Role of Logistics

Unlock Infinite Possibilities in your Supply Chain with AI

Omnichannel Retail Fulfillment and the Role of Logistics

Food Delivery: The Past, Present, and Future

Change is the Only Constant in Last-mile Delivery

The History, Evolution and Future of Reverse Logistics

White Glove Services: A Necessity in the Post-Pandemic World?

Evolution of Vehicle Routing and Scheduling

Convert your logistics operations to a revenue generator.

By clicking submit, you are providing us with your consent to communicate via email or phone

I would also like to subscribe to the Exclusive Newsletters, Content & Event invitations and notifications by Locus in related areas. You can refer to our Privacy Policy .

Logistics Study Reveals Three Potential Cures To Global Supply Chain Problems

WASHINGTON, UT: Trailers wait to be transported at a large Walmart regional distribution center in ... [+] Washington, Utah. (Photo by George Frey/Getty Images)

A study released today by NTT Data on the current state of the global supply chain offers clues into how the logistics industry is managing through the worst crisis in decades. The 2022 26th Annual Third-Party Logistics Study, which included data gathered this spring from surveys and one-on-one interviews with almost 350 companies, illuminates critical issues faced by logistics managers worldwide.

The pandemic placed a spotlight on supply chains, illuminating the downsides of just-in-time inventory management and vulnerabilities in sourcing strategies. The report highlights several ways the industry plans to change to limit future disruptions: advancements in technology, reshoring of production, growth of the supply chain as-a-service business model.

Increased use of technology will make more intelligent, more agile supply chains

Technological advancements have the potential to relieve some of the stress in the industry. Promising technologies such as 5G, real-time data transmission, robotics, Internet of Things and data analytics will help logistics managers with better visibility into the different areas of the supply chain and improve maneuverability when issues occur.

Just over half of third-party logistics managers (56%) said they feel it is moderately or critically important to provide 5G-enabled services to their clients. "5G reduces the amount of latency, so it is much more real-time, which is important because there is a large amount of data that has to travel back and forth", says Dave Bushee, Senior VP of information technology for Penske Logistics, one of the main sponsors of the study.

Smart factories and warehouses can increase square footage capacity and autonomous processes could address labor shortages — to an extent. "Tech-driven productivity improvements can only help so much," according to Sylvie Thompson, a supply chain consultant with NTT Data Services. "No amount of technology is going to resolve some of the capacity issues, but it will give us more agility to adjust to maintain production," says Thompson. Yet, many processes in the chain still require human intervention, and as such, demand for labor will still be an issue.

Logistics managers plan to pivot towards regional/domestic supply chains

For years, supply chains have focused on reducing inventory levels and cutting costs by embracing lean, just-in-time management in their logistics plans. These efforts negatively impacted the resilience and agility of the supply chain.

The pandemic exposed weaknesses in contingency planning and risk mitigation strategies across the world. From the initial scarcity in personal protective equipment to the shortage in microprocessors, challenges emerged in linking suppliers of goods on one side of the planet to sources of demand on the other. As a result, companies are growing more risk-averse with their global manufacturing footprint.

Cracks in the supply chain were growing even before the pandemic took root thanks to increased geopolitical risk between China and the U.S., causing firms to rethink their logistics strategies. "Nearshoring and restoring absolutely is going to happen. It has been happening quietly for last few years," says Kevin Smith, CEO of Sustainable Supply Chain Consulting.

Almost two-thirds of shippers in the survey (68%) believe supply chains have become too global and must be balanced towards more regional and local/domestic ecosystems.

Factors contributing to a global rebalancing include:

• more restrictive trade policies
• changes in tax implications
• changes in government regulations
• increased awareness of supply chain vulnerabilities
• increased need for supply chain resilience
• new sources of raw materials and supplies

Nearly 70% of companies in the survey said supply chains have become too global

Risks associated with a single source of supply jumped during the pandemic. A single outbreak of COVID-19 at a manufacturing plant in Thailand, for example, can have reverberations thousands of miles away. A new definition of single source of supply now includes a single country or region, not just exposure to one company. The result is a pivot towards more regional or local networks rather than the traditional global ones.

"When a global link breaks, regional links need to be self-sustainable," Thompson says when describing the impetus behind the shift. Until these links can be established, risks associated with raw material shortages, rising transportation costs and delays will likely continue. "Whether we like it or not, all supply chains are related. Until the world gets the virus under control, supply chains are going to continue to be disrupted," Thompson adds.

According to the study, 83% of shippers reported disruption in the supply of key materials this year compared to 49% of respondents in the 2021 survey, and 83% of shippers said they plan to adjust sources of supply as a direct result of efforts to rebalance towards regional and local/domestic sources. Furthermore, 68% said supply chains have become too global and 45% of the companies surveyed anticipate adjusting production locations over the next three years. Such adjustments will hopefully minimize the ripple effects of a single breakdown in the global supply chain.

Best Business Credit Cards Of September 2021

Best airline credit cards of october 2020, more companies will move to monetize excess capacity in their own supply chain.

As it currently stands, the logistics industry is not blessed with lots of spare capacity. Cargo ships, containers, truck drivers, and warehouse space are all in short supply. Individual companies, though, often do have spare capacity at various points along their supply chains.

Logistics giants like Amazon AMZN and Walmart WMT , who have invested heavily over the last decade in developing their networks, are beginning to let other companies piggyback on their investments. These integrated conglomerates are starting to change the way they view their supply chain.

The new business model is called Supply Chain as-a-Service , or "SCaaS." For example, having a proprietary truck fleet, once seen as a competitive advantage, is now seen as a way to generate additional revenue. Companies are looking at spare capacity as an alternative source of profit rather than cost centers, the way they have traditionally been viewed. SCaaS services can include inventory management, reverse logistics, logistics consulting, sourcing and customer service.

In August, Walmart announced a new line of business, Walmart GoLocal , which will provide last-mile deliveries to other merchants. "Walmart has spent years building and scaling commerce capabilities that support our network of more than 4,700 stores, and we look forward to helping other businesses have access to the same reliable, quality and low-cost services," says John Furner, President and CEO of Walmart U.S.

Amazon has invested billions of dollars in building out its massive network of trucks, warehouses and planes. As a leader in technology, we should expect Amazon to be keen to find ways to use its advanced data analytics and end-to-end visibility of the supply chain to monetize any spare capacity in its system.

It's not just the giants that are considering adapting to a new business model. The study released today shows that 35% of companies involved in logistics either currently offer SCaaS or plan to explore it over the next year. These efforts should help alleviate some of the capacity constraints and help prevent the creation of future bottlenecks .

Roughly 30% of logistics companies are investigating a supply chain as-a-service business model

When will things get back to normal?

Nobody knows for sure. When asked this question, before the recent surge of the delta variant, 37% of companies in the study believed it would take more than six months for the global supply chain to return to normal. Some felt it would take much longer.

The good news is that the industry appears to recognize its shortfalls and is embracing a variety of tactics to correct them. Unfortunately, some of these changes will take time. As long as demand remains unpredictable and the multi-legged supply chain is vulnerable to COVID outbreaks on the other side of the world, no magic bullet is available.

Home / Blog / Big Data in Logistics: 10 Successful Examples

Big Data in Logistics: 10 Successful Examples

• What is the definition of Big Data?

How can Big Data use cases in logistics improve supply chains?

Case #1. transportation of goods with special storage conditions.

• Case #2. Demand forecasting

Case #3. Routes Optimization

Case #4. logistics costs reduction, case #5. warehouse management, case #6. supply chains visibility, case #7. drivers’ safety, case #8. a tailored approach, case #9: freight matching, case#10: delivery optimization, warehouse management, and more.

• How Coreteka developed a Big Data tech solution to forecast consumer demand?

Big Data in logistics FAQ

To operate a supply chain efficiently, modern companies need access to real-time data and the ability to analyze it quickly. However, only 7% of supply chains are currently able to perform this task.

Big Data in logistics can help optimize routes, enhance factory processes, and raise performance throughout the entire supply chain. Thanks to its increasing value and necessity across sectors, the big data market is likely to surpass $68 billion by 2025.

Therefore, the impact of Big Data on logistics is hard to overestimate. Supply chain management is a complex field that continually evolves, making Big Data applications an essential tool to keep logistics businesses afloat.

In this article, we’ll talk about the benefits of big data for supply chains and the winning Big Data logistics use cases to help you harness the tool for your own business success.

What is the definition of Big Data in logistics?

Data surrounds us everywhere. Today humanity generates about 1.7 megabytes of information per second and 2.5 quintillion bytes per day. When you surf the internet, buy products, or even breathe, you generate data.

You might be interested, in where humanity uses such a large scope of information. Here the principle works: the more you know about something, the easier it is to predict what will happen. So, the systems compare a great scope of information and identify patterns.

It should be noted that not all data is “big”. To identify big data, scientists operate with 4 characteristics:

• Size. It’s the main characteristics, as value criteria. Big Data is about petabytes to exabytes of information.
• Type. Earlier we used simple sheets with words and numbers to process data. But today we operate different sources of information, such as images, audio, PDF files, and even time spent at a mall. When data consists of one type of information, it’s called structured. It gets harder to find relations between different types of data. Then, we deal with unstructured information. Big Data is about working on information, which can be difficult to analyze. For example, how to explain, why clients order Hawaiian pizza more often on Friday.
• Processing speed. Big Data is generated every second. The higher the processing speed, the more significant would be the potential.
• Variability. Big Data is unstable, it has a value that depends on time.

For a better understanding, let’s compare traditional databases and Big Data.

Big Data in logistics entails the use of large and complex datasets to gain insights, make informed decisions, and optimize transportation processes. It involves collecting, processing, and analyzing massive amounts of data generated by various sources, including sensors, GPS devices, RFID tags, customer interactions, and more. The goal is to extract valuable information and patterns from this data to improve operational efficiency, reduce costs, enhance customer service, and enable strategic decisions.

The picture below illustrates which areas of the logistics business Big Data can transform.

Ultimately, Big Data in the logistics industry transforms traditional supply chain management by providing data-driven insights that enhance performance and spur innovation.

All players in the supply chain can solve a large number of problems with Big Data Analytics. For example, logistics providers predict delivery time according to weather conditions, traffic jams, characteristics of vehicles, etc. Manufacturers respond to fluctuations in demand and retailers regulate sales levels.

Here are some ways logistics companies can use Big Data for business efficiency:

• Routes optimization in real-time.
• Preventing road accidents.
• Decreasing money loss for repairing vehicles.
• Increasing delivery reliability.
• Demand forecasting.
• Improving client service.
• Cost reduction for storage.
• Optimization of warehouse stocks.

Let’s discover 10 real Big Data logistics use cases.

Transportation of medical supplies, frozen food, and hazardous materials is a big deal for the logistics industry. A transporter has to take care of package integrity, temperature conditions, and risk absence. Moreover, a carrier has to prove the freight was properly maintained.

Big Data solves the problem. In 2012, Swiss start-up SkyCell designed containers for medical transportation. These containers collect data about vibration, humidity, and temperature levels. The solution is powered with software to track changes in conditions and quickly respond. To prove that medical supplies are carried in safe conditions, reports are created. Today the annual capacity of SkyCell containers is more than 20,000 pallets.

Temperature-controlled containers with Big Data infrastructure enable safer logistics processes and improve product integrity. Supply chain managers in pharmaceutical companies should engage service providers that leverage real-life data, aiding in analysis and higher control of risk exposure instead of trying to remedy the consequences of temperature fluctuations. Ultimately, Big Data integration will make transportation processes more transparent, cutting expenses and elevating patients’ safety.

Explore why medical supplies transportation is one of the most challenging fields in logistics.

Case #2 Demand forecasting

Retail and logistics companies have to create warehousing stocks, deliver goods to outlets just in time, and control supply and demand. It helps to increase sales levels.

Domino’s Pizza is a great example of how Big Data helps to forecast demand. The company does its best to deliver orders in 30 minutes or less. For years Domino’s Pizza has been collecting data. And now the company uses the information to forecast demand. They know what pizzas will be ordered in 5 minutes. So, the further order is put in an oven beforehand. If there is no demand, Domino’s Pizza begins to stimulate it. They change content on the site and offer discounts. The system analyzes demand in every outlet by tracking visitors’ geolocation. A cook gets a pizza from an oven in 10 seconds before placing an order.

Also, read information about our automotive hackathon .

CoreTeka’s team has developed a similar tool for our client. It’s the Big Data Tool. The solution analyzes demand among outlets by weather, social, and cellular networks. So, a manager can coordinate promo activities, and a company manages the sales levels. Read more about Big Data Tool here .

Delivery time is a critical indicator for transportation and courier companies, as the main principle of logistics is “to be just in time”. It’s difficult for managers to build optimal routes. You should consider weather conditions, traffic jams, and the distance from point A to B.

Even UPS faced the problem of route optimization. Then, in 2012, the company deployed the ORION algorithm. When a driver begins his work, the system provides guidance about the best route. Algorithms use descriptive analytics to forecast what happened in the past, and predictive analytics for what happened in the future. ORION works with more than 60,000 routes in the USA, Canada, and Europe. Since its implementation, the system saved 100 million miles for UPS.

Orion’s overall efficiency allowed the use of its data for other consumer solutions, including UPS My Choice® for home and UPS My Choice® for business. These tools help users by providing advance delivery notifications, forecasted delivery time, and the opportunity to change delivery locations. As a testament to UPS’s ORION success, in 2016 , the project received the Franz Edelman Award for Achievement in Operations Research and the Management Sciences.

For years logistics companies have tried to reduce fuel and cut expenses.

In 2018, to solve the problem of logistics expenses, DHL company has developed the Smart Truck solution. The company equipped its trucks with IoT sensors, which collect data about weather conditions, traffic jams, road accidents, etc. DHL plans to add more than 10,000 trucks with IoT sensors by 2028. Smart Truck has reduced empty miles by 15%, saved millions of fuel gallons, and decreased CO2 footprint.

For small and mid-sized businesses, there is no need to invest in such complex solutions. The best way to reduce logistics expenses is to implement the Transport Management System. In a custom solution, you can add functionality that perfectly suits your needs.

CoreTeka’s team has developed TMS for our client, Phillip Morris. The solution helped the company to decrease operational costs by 2% and reduce CO2 footprint by 1,2%. Check out CoreTeka’s Transport Management System here .

Logistics operational activity depends on warehouses. Delays may result in millions of losses. By providing Big Data Analytics, companies spare warehouse workers the need to do routine tasks, such as filling in documents, picking, and packing.

We have already talked about how Amazon uses predictive analytics to manage orders in distribution centers and warehouses. If you haven’t seen the article, follow the link . But here is one more inspiring example.

For years Lineage Logistics has shown great results in warehousing. The company stores millions of goods and delivers them to more than 3,000 shops, restaurants, and cafes. Lineage Logistics’s engineers have developed smart algorithms to forecast where one or another order will be in a warehouse. So, the staff has time to organize pallets with goods. The closer the delivery date, the nearer the container to the loading area is. The solution helped the company to improve warehouse efficiency by 20%. As a result, the profit grows, and the customers are happier.

In more complex supply chains, such as large manufacturing, visibility plays a critical role. For example, in Audi’s warehouses, every part is vested with a particular auto unit. So, the company carefully plans the assembly of models and even uses drones to deliver parts to the right place. There is the question of how to track such a great scope of materials.

SenseAware, FedEx’s project, provides new opportunities to increase visibility at every stage of supply chains. The solution allows companies to track cargo location and status in real time. It monitors humidity, temperature, atmospheric pressure, and illumination conditions. Then, manufacturers never lose sight of the parts.

Specifically, SenseAware ID uses a small sensor that sends accurate package location data every two seconds via BLE to WiFi access points within the FedEx Express network. The sensor allows tracking packages hundreds of times compared to dozens of times with conventional package scanning protocols. Ultimately, users get a new level of precision in location-tracking, which facilitates safety, security, and timely deliveries.

Road accidents are one more logistics pain point. To prevent occasions, Big Data Analytics works the best.

The Fleet Risk Advisors company has developed software to collect data about drivers’ working hours, movement speed, destination, time in route, etc. The most important functionality is analyzing the driver’s behavior through data. Logistics companies can use the information to manage the risks of road accidents, decrease expenses, and enhance transportation reliability.

CoreTeka does its best to increase drivers’ safety on the roads. That’s how the team decided to develop DriverApp. The mobile application has helped our client to keep communication between managers and drivers. Read more about the solution in our case studies .

C.H. Robinson, a third-party logistics company, utilizes Big Data analytics to offer personalized solutions to its customers.

The company has developed a Navisphere platform, a cloud-based technology solution that integrates data from various sources across the supply chain. The platform uses data to track shipments, monitor carrier performance, and provide real-time visibility of supply chain processes. In a nutshell, the platform acts as a centralized hub for data collection and analysis, helping customers make informed decisions and improve efficiency.

Enabled by Big Data, the Navisphere platform empowers the company to optimize logistics processes and deliver value-added services to its customers. The platform’s data-driven approach reinforces decision-making, elevates performance, and helps businesses navigate the complexities of modern supply chain management.

Uber Freight functions as a ridesharing service in the logistics industry. The platform connects shippers and carriers and uses Big Data to couple available truck capacity with shipping needs. Real-time data on truck locations, traffic conditions, and load capacities allow Uber Freight to optimize freight matching and delivery schedules.

The essence of the service lies in the advanced freight matching algorithm. It considers a variety of factors, including location, load size, equipment type, and current market conditions. By analyzing this data, Uber Freight efficiently connects shippers with carriers, reducing the time and effort required to find suitable partnerships.

The way Uber Freight utilizes Big Data transforms the traditional freight brokerage model by providing a technology-empowered platform that enhances efficiency, transparency, and collaboration. The data-enabled insights improve operations for all parties, optimizing processes and elevating service quality in the logistics industry.

Amazon is a company that heavily relies on Big Data for its logistics operations. The company is a pioneer in using this technology to transform its activities across various areas, including logistics and supply chain management.

In particular, Amazon employs Big Data analytics to optimize its supply chain operations and forecast market situation. The company gathers and analyzes data on customer preferences, purchasing behavior, and market trends to forecast demand accurately. This helps Amazon maintain the right levels of inventory at its fulfillment centers and reduce stockouts while minimizing excess inventory costs.

Furthermore, Amazon utilizes Big Data for warehouse management and order-picking processes. Data from sensors, RFID tags, and other sources help track the movement of items within warehouses, optimizing storage space and improving order fulfillment speed.

How Coreteka developed a Big Data tech solution to forecast consumer demand

Thanks to our experience with Big Data and logistics, we develop technologically advanced solutions tailored to the requirements and needs of companies.

For example, one of our implemented projects is the Big Data Tool for Philip Morris . It was specifically designed to forecast demand and popular visiting times at retail points based on data. Accurate predictions enable effective supply chain management as well.

Big Data is not the only technological solution that can benefit your logistics company. If you are exploring other possibilities, consider:

• Blockchain . This can be applied to develop applications securing data transfer among different participants.
• AI-assisted chatbots . These solutions can enhance your customer service.
• Internet of Things (IoT) . The tech is used in logistics for real-time fleet management and end-to-end visibility in the delivery process. IoT can also be utilized to improve warehouse operations, such as smart labeling, storage conditions control, and inventory level tracking.
• AR/VR . Such technologies can be used to enhance warehouse, transport, and last-mile delivery operations, such as accelerating picking and freight parcel-loading.
• Machine learning . This technology is closely related to Big Data. With machine learning, you can create solutions for demand forecasting, production planning, stock tracking, schedule optimization, etc.

If you have a technological project idea but are unsure how to bring it to life, we can help by analyzing your business and finding a solution .

The role of Big Data in logistics is pivotal, as it provides real-time insights into supply chain operations, optimizing routes, enhancing inventory management, and improving consumer experiences. By analyzing data from sensors, GPS devices, and various other sources, logistics companies can make informed decisions, predict demand patterns, reduce costs, and guarantee timely deliveries. Therefore, the tool enables efficient resource allocation, risk prevention, and collaboration across the supply chain, leading to operational excellence and customer satisfaction.

Big Data in supply chain management enhances visibility, decision-making, and overall efficiency. It encompasses collecting and analyzing vast datasets from multiple sources, from warehouse sensors to information about market trends. This data enables accurate demand forecasting, optimized inventory levels, and streamlined logistics processes. Real-time tracking and monitoring ensure smooth deliveries. Predictive analytics helps identify potential bottlenecks and risks, enabling preventative actions. Generally, Big Data arms supply chain managers with insights to adapt, improve, and deliver cost-effective, customer-focused solutions.

One of the companies that effectively utilize Big Data is FedEx. Through its SenseAware platform, FedEx accumulates and analyzes real-time data from shipments, providing insights into temperature, humidity, and location. This information ensures that sensitive goods are transported under optimal conditions. By applying Big Data analytics, FedEx enhances its capabilities in offering secure, efficient, and compliant transportation while customers get comprehensive visibility and transparency throughout the supply chain.

Embracing Big Data in logistics and supply chain management is crucial for companies aiming to retain a competitive edge. The tool delivers a higher transportation speed and transparency, together with multiple other benefits for service providers, carriers, and customers alike. Furthermore, efficient operations today become impossible without data-driven decisions.

In this article, we compiled a list of Big Data logistics case studies intending to demonstrate the breadth of areas where the tool can be applied. Once you understand the essence and benefits of big data in logistics and trucking and get inspired by the spectacular examples, you can think of implementing data-empowered solutions for your own prosperity.

Let Coreteka’s team streamline your journey. Contact us to plan your project, and we’ll bring the right technology to your service.

Looking for expertise content?

Browse our articles

June 23, 2024

Save 15-20% in Logistics Spend: How Wiima Developed a SCM Platform with the Help of Coreteka

February 21, 2024

IT Outsourcing Risks and Benefits: Delegate and Rule

February 07, 2024

Key Mobile App Monetization Strategies to Perform for Your Product Marketing 

January 24, 2024

Falling Forward: Why Do Startups Fail and How to Keep Them Growing?  

CORETEKA 2024 | Privacy Policy | Cookies Policy | Show our e-mail | Contact us | Sitemap

We will contact you shortly.

Smart. Open. Grounded. Inventive. Read our Ideas Made to Matter.

Which program is right for you?

Through intellectual rigor and experiential learning, this full-time, two-year MBA program develops leaders who make a difference in the world.

A rigorous, hands-on program that prepares adaptive problem solvers for premier finance careers.

A 12-month program focused on applying the tools of modern data science, optimization and machine learning to solve real-world business problems.

Earn your MBA and SM in engineering with this transformative two-year program.

Combine an international MBA with a deep dive into management science. A special opportunity for partner and affiliate schools only.

A doctoral program that produces outstanding scholars who are leading in their fields of research.

Bring a business perspective to your technical and quantitative expertise with a bachelor’s degree in management, business analytics, or finance.

A joint program for mid-career professionals that integrates engineering and systems thinking. Earn your master’s degree in engineering and management.

An interdisciplinary program that combines engineering, management, and design, leading to a master’s degree in engineering and management.

Executive Programs

A full-time MBA program for mid-career leaders eager to dedicate one year of discovery for a lifetime of impact.

This 20-month MBA program equips experienced executives to enhance their impact on their organizations and the world.

Non-degree programs for senior executives and high-potential managers.

A non-degree, customizable program for mid-career professionals.

6 ways to help employees embrace data-driven initiatives

Data literacy: The key to cracking the data culture code

How to build a successful multi-sided platform

Credit: Carlos Castilla / Shutterstock

Ideas Made to Matter

Supply Chain

How artificial intelligence is transforming logistics

Kristin Burnham

Aug 20, 2024

Artificial intelligence is creating unparalleled new opportunities for logistics and supply chain management. Many organizations, however, remain uncertain about how best to implement it. 

“AI is a moving target,” said Chris Caplice , the executive director of the MIT Center for Transportation and Logistics . “It’s not sitting still; it’s aspirational because what was considered AI 30 years ago — even 20 years ago — is not considered cutting-edge AI anymore. It’s always that thing that exceeds our grasp.” 

In considering how to implement AI, managers need to understand how different analytic approaches, such as traditional AI, generative AI, and operations research, work together, Caplice said during a recent webinar hosted by MIT Sloan Management Review. 

Caplice and Lior Ron , founder and CEO of Uber Freight, discussed the analytic tools being used in supply chain management, the logistical problems AI can help solve, and other managerial benefits of using AI in logistics.  

Understanding different analytic tools 

It’s useful to think of the evolution of AI in logistics in the context of other tools, Caplice said. Traditional AI analyzes data to complete specific tasks. Generative AI uses large language models to take something in context, summarize it, and generate new content. Operations research uses scientific methods to study systems that require human decision-making, using approaches such as linear programming and network models.

In logistics, these methods are complementary and don’t need to replace one another, Caplice said. Operations research combined with AI, for example, works well in many instances. 

Solving logistics challenges with AI

AI technologies are poised to solve many challenges faced in logistics, Ron said. These include: 

• Fragmented supply chains and the need to connect networks to optimize and drive better outcomes.   
• Market volatility, particularly changes in pricing and disruptions in services.   
• Safety concerns, including those related to COVID-19, driver safety, and digital fraud.   
• The impact that trucking and freight have on climate change.

Innovations that address some of these challenges are emerging now. For example, Uber Freight has used machine learning to pioneer algorithmic carrier pricing, which ensures that carriers receive upfront guaranteed pricing for trucking and freight. “By looking at hundreds of different parameters, we’ve been able to make [this model] accurate enough to introduce a marketplace that is now removed of all the friction, guessing, and back-and-forths [of] trying to estimate the price of trucking,” Ron said.

Related Articles

Uber Freight is also using machine learning to address vehicle routing, a complex issue that involves determining the most efficient route for a vehicle to deliver goods to a set of locations. Trucks in the U.S. are about 30% empty on average , which wastes time and fuel and leads to unnecessary carbon emissions. By algorithmically designing the optimal route for the truck driver, the company has been able to reduce the empty miles to between 10% and 15%. 

Uber Freight isn’t the only company applying technology to vehicle routing. On a smaller scale, businesses typically use operations research and human problem-solving to minimize the time, cost, and distance of trucking and freight. On a larger scale, with more complicated routes and additional factors, operations research and human problem-solving no longer suffice. 

To address this challenge, the MIT Intelligent Logistics Systems Lab is combining traditional AI, generative AI, and operations research to improve routing outcomes. “What we see is that initially, AI is taking a subordinate role, but as we advance through, we’re starting to see it take more of a primary role,” Caplice said. “Eventually, we’d like to see the generative AI take over and solve larger parts of that problem.” 

4 managerial benefits of generative AI in logistics

Using classic operations research approaches in logistics has limitations, Caplice said. Every time complications are introduced — such as different time windows, street sizes, and truck capacities, for example — traditional algorithms need to be tweaked. Generative AI can generalize this information and obviate the need for new algorithms. 

As a result, these technologies are outperforming classic methods for solving larger logistics problems, Caplice said. And there are other managerial benefits to these technologies, too:

• AI models systematically outperform their training data — meaning they perform better on new, unseen data than on what was used during the training process. This means that organizations don’t need a perfect set of routes that drivers have vetted, Caplice said. “This is a really nice time savings because it means you don’t need to generate special data,” he said.
• By being trained continuously, the models will learn better routing policies automatically. If a policy shifts, for example, the model will pick up on it, eliminating the need for specialty algorithms. 
• AI models eliminate the need for algorithms tailored to specific problem sizes and characteristics, particularly as different characteristics come into play.
• AI models generalize well to previously unseen problems, such as vehicle capacities.

“Machine learning, AI, and generative AI are taking this large language model approach and solving what has been solved pretty well by operations research — but doing it faster, more completely, and solving to nontraditional objective functions,” Caplice said. “We’re seeing a lot of opportunity here, and the exploration research is continuing.”

Read next: The State of Supply Chain Sustainability

A development of an OEE for machineries health monitoring in water production plant for specific community areas Case Study: Water Production Plant Unit, Department of Logistics Engineering, Engineering Faculty Rajamangala University of Technology Rattanakosin (RMUTR)

New citation alert added.

This alert has been successfully added and will be sent to:

You will be notified whenever a record that you have chosen has been cited.

To manage your alert preferences, click on the button below.

New Citation Alert!

Please log in to your account

Information & Contributors

Bibliometrics & citations, index terms.

Applied computing

Physical sciences and engineering

Engineering

Recommendations

Intelligent oil production stratified water injection technology.

As the driving energy to deal with the decrease of interlayer pressure caused by continuous oil production, the layered water injection technology has the characteristics of inhibiting the decrease of oil production and slowing down the increase of oil/...

Pantura Water Quality: Comparing the Pollution Distribution Model of Comal River and Garang River

Sea is the estuary of rivers on land. In the sea all kind of pollutions carried by the river flow will be accumuated, which make the sea water quality worse than the river itself. Comal river and Garang river is two of the few river that flows into the ...

Inactivation of Cyclops by Chemical Oxidation in a Drinking Water Plant

Cyclops of zooplankton propagated excessively in eutrophic water body and it couldn’t be effectively inactivated by the conventional disinfection process. In order to tackle this problem, a study of removal effect on Cyclops with oxidants in a drinking ...

Information

Published in.

Association for Computing Machinery

New York, NY, United States

Publication History

Permissions, check for updates, author tags.

• Machine monitoring
• Preventive Maintenance
• Research-article
• Refereed limited

Contributors

Other metrics, bibliometrics, article metrics.

• 0 Total Citations
• 1 Total Downloads
• Downloads (Last 12 months) 1
• Downloads (Last 6 weeks) 1

View Options

Login options.

Check if you have access through your login credentials or your institution to get full access on this article.

Full Access

View options.

View or Download as a PDF file.

View online with eReader .

HTML Format

View this article in HTML Format.

Share this Publication link

Copying failed.

Share on social media

Affiliations, export citations.

• Please download or close your previous search result export first before starting a new bulk export. Preview is not available. By clicking download, a status dialog will open to start the export process. The process may take a few minutes but once it finishes a file will be downloadable from your browser. You may continue to browse the DL while the export process is in progress. Download
• Download citation
• Copy citation

We are preparing your search results for download ...

We will inform you here when the file is ready.

Your file of search results citations is now ready.

Your search export query has expired. Please try again.