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  • Writer's pictureArun Rao

Delivering the Future: Role of Analytics in the Parcel Industry

Person holding a package
Photo by Kira auf der Heide on Unsplash

Advanced Analytics provides parcel companies with valuable insights into their operations and enables them to make data-driven decisions to improve their services. Parcel shippers can also use these analytics to lower their overall costs, as well as aid in top-line revenue growth, improve customer satisfaction and delivery experience.

Here are the top 6 ways analytics can help parcel providers and customers shipping parcels:

  1. Cost Streamlining: Analyzing the shipping modes (more expensive Air versus cheaper Ground) for shorter delivery distances can significantly help reduce costs for shippers. Analytics can also help identify recurring master data issues such as wrong address, billing errors and the like, to help shippers recover up to 4% of their shipping costs

  2. Route optimization: Analyzing data on delivery routes, traffic patterns, and delivery volumes help parcel shippers and providers optimize delivery routes. By identifying the most efficient routes and delivery methods, parcel companies can reduce delivery times, improve delivery accuracy, and lower operating costs. Route optimization plays a big part in reducing fuel spend and improve sustainability.

  3. Customer behavior analysis: Customer's delivery preferences and purchase history can be used to offer personalized delivery options, improve customer satisfaction, and increase customer loyalty.

  4. Predictive analytics: Predictive analytics can be used to forecast demand and anticipate delivery volumes, allowing parcel companies to allocate resources more effectively and reduce delivery times. Predictive analytics can also be used in the e-commerce site to inform customers about "guaranteed delivery dates and times" to improve conversion rates by 20% and increase top-line revenues

  5. Real-time monitoring: Real-time monitoring of delivery operations can help parcel companies identify and resolve issues quickly. Advanced analytics algorithms can be used to monitor and predict delivery times, delivery accuracy, and other key performance indicators in real-time, enabling parcel companies to take action quickly to improve their services.

  6. Fraud prevention: Analytics can be used to detect and prevent fraud, including fraudulent shipments and false claims. By analyzing data on shipping patterns, shipping label generation, and transaction history, parcel companies can identify suspicious activity and take action to prevent fraud.

There are many other uses of Advanced Analytics in the Parcel industry, and it is key to helping parcel companies and shippers make data-driven decisions and keep customers happy.

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