How Should the Logistics Industry Adjust to Big Data?

Bryan Corbett • July 12, 2013

In today’s competitive landscape, there has been a surge of data and information in all business sectors. The logistics industry is certainly no exception to this trend. The ability to pass information between supply chain partners via mobile devices, satellite systems, and electronic data interchange is being embraced by more and more companies daily. IT companies are constantly adapting to the evolving world of data. As a result, new hardware and software solutions are developing innovative and organized methods to handle all of this “big data."

The logistics world, as well as other broader market's business sectors, will recognize what IT-savvy companies already know. All companies will need a strategy to handle the increasing wave of data being processed daily. If handled in the correct manner, companies will be able to digest and analyze this information; thereby enabling executives and operations personnel to make timely decisions with the insights provided. Although big data has been around for some time in the logistics industry, most companies are really in the initiation stage of developing a real strategy for it. It is certainly an advantage to have access to information, but it is even more critical to have a strategy in place for the interpretation and implementation of this data. Logistic companies and executives who develop strategies and implement processes on managing this data will ultimately be the organizations which will thrive in this new era of information.

We are also entering an era of unprecedented levels of real-time visibility to new data through mobile devices in the logistics industry. There are new data sources supplying real-time supply-chain data everywhere we look. Electronic On Board Recorders (EOBRs) in trucks, sensors and RF tags in trailers, RF readers in distribution centers, and the massive numbers of modern handheld devices (smart phones and tablet PCs) are all sending, receiving and processing huge amounts of data that have not been part of our business world until now. The deluge of new data is being driven by a need to manage assets more efficiently, have greater visibility and control over supply chains, new regulations, and the need to communicate from anywhere at any time.

Data-driven decision-making is becoming a more recognized path to success and a sustained competitive advantage for global logistics companies. Amazon.com handles millions of back-end operations every day, as well as queries from more than half a million third-party sellers. The core technology that keeps Amazon running is Linux-based and as of 2005, they had the world’s three largest Linux databases, with capacities of 7.8 TB, 18.5 TB, and 24.7 TB. As the leader in the information technology world, Amazon is at the forefront of interpreting big data for future strategy and implementation.

In the retail sector, social networks will offer new and progressive avenues to reach or “touch” the consumer. Analytics and data will follow closely with these newly formed bonds. With these trends in sight, logistics companies should prepare for the demand, as orders will certainly follow from this relationship.

With the surge of information, there are definite challenges that present themselves in many forms. One of the largest factors is the internal infrastructure of logistics organizations. Information is great, but what does a company do with it, if it is not yet equipped to handle or sort it? According to a survey by Computacenter and several other IT firms, many companies have not even prepared their data to be analyzed. More than half of the companies in question do not have information in an orderly structure, the report explained. Unfortunately, these companies could run into trouble when they try to extract useful insights from their resources. Having the information at your disposal is only one part of the equation, as it is just as important to make key decisions based on sound and experienced judgment. So, one can see where thinking of technology as the “silver bullet” can create more damage than good for unprepared organizations.

Another challenge with big data is making sure the information, and metrics are accurate. Also, can you trust it? Many IT teams spend, on average, half of their time fixing and scrubbing the data. They spend the other half of their time, mostly on maintaining current systems, leaving little or no time for innovation. It has been stated in many arenas that poor data quality can be the Achilles’ heel of supply-chain management. However, so many organizations continue to function, but do so with a steep cost in wasted time and resources.

With the recent proliferation of big data, logistics companies should prepare by ensuring the infrastructure and resources are in place before diving blindly into this field. While it may take more effort and resources on the front end, it will certainly be an effort worth it in the long run. Information and technology are very powerful combination. However, it is how an organization leverages this information and technology that is the most important question.

CONTACT BARRETT DISTRIBUTION

< Older Post

Newer Post >

Recent Blog Posts

How Can I Reduce Shipping Costs?

By Faith Artieda • July 22, 2026

Shipping costs are one of the largest expenses in any supply chain, and with rising carrier rates and increasing customer expectations, businesses are constantly looking for ways to ship more efficiently without sacrificing service. The good news is that reducing shipping costs doesn't always mean cutting corners,it often comes down to improving your logistics strategy. Here are a few proven ways businesses can lower shipping costs while maintaining a positive customer experience. Optimize Your Warehouse Location Where your inventory is stored has a direct impact on shipping costs. Placing inventory closer to your customers can reduce shipping zones, shorten transit times, and lower parcel expenses. Many businesses are strategically positioning inventory in key distribution markets, allowing them to reach more customers within one or two business days while minimizing transportation costs. Consolidate Inventory Managing inventory across multiple warehouses can increase storage costs and create inefficiencies. In many cases, consolidating inventory into a strategically located fulfillment center can improve inventory visibility, reduce duplicate stock, and simplify operations. The right strategy depends on your customer base and shipping patterns, making it important to evaluate your distribution network regularly. Use a Transportation Management System Transportation management systems (TMS) help businesses compare carrier rates, select the most cost-effective shipping methods, and optimize deliveries. These systems can identify opportunities to reduce parcel costs while maintaining delivery performance. Many third-party logistics providers (3PLs) use transportation technology to help customers improve shipping efficiency and gain greater visibility into their transportation spend. Improve Packaging Efficiency Oversized packaging can increase shipping costs by adding unnecessary dimensional weight. Using packaging that fits products more efficiently can help reduce freight expenses while minimizing material waste. Reviewing packaging designs regularly can lead to meaningful cost savings over time. Partner with an Experienced 3PL One of the most effective ways to reduce shipping costs is by working with a third-party logistics provider. Established 3PLs often have strong carrier relationships, advanced shipping technology, and transportation expertise that help businesses optimize their shipping strategy. At Barrett Distribution, transportation is integrated into a broader fulfillment strategy. Through advanced transportation management technology, carrier optimization, and strategically located distribution centers, Barrett helps customers improve transit times while identifying opportunities to reduce overall shipping costs. Combined with real-time reporting and supply chain visibility, businesses can make informed decisions that improve efficiency across their logistics network.

Will Switching Warehouses Disrupt My Business?

By Faith Artieda • July 21, 2026

Switching warehouses is a significant decision, and it's natural to worry about potential disruptions to your operations. However, with the right third-party logistics (3PL) partner, the transition can be carefully planned and executed with minimal impact on your customers or day-to-day business. A successful warehouse transition begins with a detailed implementation plan. This includes reviewing your inventory, integrating systems, validating data, coordinating inbound inventory transfers, and thoroughly testing processes before orders begin shipping. Clear communication and collaboration throughout the onboarding process help identify potential challenges early and keep the project on schedule. An experienced 3PL will also dedicate resources to training staff, establishing performance benchmarks, and monitoring operations closely during the first few weeks after go-live. This "hypercare" period ensures any issues are resolved quickly while maintaining service levels and order accuracy. At Barrett Distribution, every customer implementation is supported by a dedicated project team that guides the transition from discovery through stabilization. Barrett's structured onboarding process emphasizes detailed planning, system testing, proactive communication, and cross-functional collaboration to help customers make a seamless transition. By focusing on data accuracy, operational readiness, and continuous support, Barrett helps businesses minimize risk and build a strong foundation for long-term success. While every business has unique requirements, switching warehouses doesn't have to mean disrupting your operations. With an experienced logistics partner and a well-executed implementation plan, businesses can transition confidently while positioning themselves for future growth.

How Does Warehouse Location Affect Delivery Speed?

By Faith Artieda • July 20, 2026

When it comes to fast, reliable shipping, warehouse location matters more than many businesses realize. Where your inventory is stored directly impacts transit times, shipping costs, and your ability to meet customer expectations. A strategically located distribution center allows products to travel shorter distances, reducing the number of shipping zones and helping orders reach customers more quickly. This not only improves delivery speed but can also lower transportation costs and increase overall supply chain efficiency. Why Location Matters As ecommerce continues to grow, customers expect deliveries in just a few days—or even the next day. Businesses that position inventory closer to their customers are better equipped to meet those expectations while maintaining competitive shipping rates. Warehouse location also affects access to major transportation networks. Facilities located near interstate highways, parcel carrier hubs, rail lines, ports, or airports can move products through the supply chain more efficiently, reducing delays and improving delivery reliability. Finding the Right Distribution Strategy There is no one-size-fits-all approach to warehouse placement. The ideal location depends on where your customers are located, your order volume, and your distribution goals. Some businesses benefit from a single, centrally located distribution center, while others may require multiple facilities to support nationwide delivery. Regularly evaluating shipping data, customer locations, and transportation costs can help businesses determine whether their current warehouse network is supporting—or slowing down—their operations. How Barrett Helps Customers Ship Faster Barrett Distribution works with customers to develop fulfillment strategies that align with their business goals and customer demand. With strategically located distribution centers across the United States, including facilities in key logistics markets, Barrett helps businesses position inventory for faster, more efficient delivery. For example, Barrett's Olive Branch, Mississippi facility provides convenient access to major interstate highways and the greater Memphis logistics network, making it an ideal location for reaching customers throughout the Southeast and across the country. Combined with advanced transportation management technology and real-time inventory visibility, Barrett helps customers optimize shipping performance while controlling transportation costs. Warehouse location is more than just a place to store inventory—it's a strategic advantage. Choosing the right location can shorten delivery times, reduce shipping expenses, and improve the overall customer experience. By partnering with an experienced 3PL like Barrett Distribution, businesses can build a distribution strategy that supports both operational efficiency and long-term growth.