Our food supply, our luxuries, and everything in between depends on global shipping. Shipping to your home used to be a big dealif you wanted something sent to you, it was going to cost you a lot more than heading to the store to pick it up. Today, online shopping has made this struggle a thing of the past for consumers. Big retailers like Amazon offer free two-day shipping for subscribers, and most websites offer free shipping for orders over a certain spending thresholdsome even offer free returns. Global shipping has increased immensely as well, particularly as many e-commerce sites choose drop shipping for distribution. With all this extra volume of packages going out to residential areas, shipping companies have been raking in the profit, and need to keep up with the speed demands of the public. How? As employee telecommuting continues to grow, big data is one of the tools companies are using to keep up. Lets take a look at how big data is breaking down inefficiency in the shipping industry.
Container Efficiency
Large shipping containers also have a large downside: theyre heavy and difficult to maneuver. Packing them onto a cargo ship efficiently for a multi-stop journey is an immensely challenging task requiring a lot of manpower and calculation. Big data makes it easy to streamline the process and calculate where on the ships specific containers should be placed for maximum efficiency.
Predicting Demand
As with other industries, big data can help shipping companies forecast demand to improve efficiency. Shipping containers arent always in transit; they move according to the market and a myriad other factors. Emerging markets like Cuba dont have much data draw from, making predictions all the more important for optimizing the shipping process, and keeping containers on the move. Predictive analysis helps shippers customize their services according to customer needs.
Smarter Ships
While the technology is still in its infancy, smarter ships could eventually improve productivity and safety for cargo as it travels through the oceans. Nanotechnology and acoustic fiber sensors are being tested in ships paint and coating materials to help detect vibration patterns and predict factors such as weather, travel patterns, and the ships need for maintenance. New technology will change the role of ship captains and operators, and the design of the ships themselves. One day, data collected and analyzed could even be used to build a self-piloting cargo ship!
Big Data in Action at UPS
UPS delivers about 15 million packages per day, and their drivers can only make so many stopsabout 120-140 on average. With their new ORION computer system, however, the company has used big data to do the heavy lifting of route planning, and make stops more efficient than ever before. The system can run through thousands of possible routes quickly, automatically routing packages to the correct vehicles, and helping drivers become even more efficient. Even before its full implementation, ORION saved UPS 85 million miles driven per year, and eliminated 8 million gallons of fuel and 85,000 metric tons of carbon dioxide.
A Crucial Economic Service
Without shipping, the worlds economy would crumble. An amazing 90% of global merchandise was shipped at some point during 2014, according to the World Trade Organization. As world economies become increasingly intertwined and satellites improve worldwide Internet connectivity, shipping efficiency is only going to become more important to our ongoing success. Fortunately, the great minds behind leveraging big data for optimize shipping efficiency seem to be just getting started.
