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Cargo Pathways: Navigating Shipments with Data Precision

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Cargo Pathways: Navigating Shipments with Data Precision

About this project

As a Supply Chain Analyst, I spearheaded the transformation of data into actionable insights that the logistics teams can use to enhance their costs of shipment, shipment status, delivery timelines, and cargo movement across multiple regions. My Analysis for Panda Deliveries that offers cargo shipment services around the world focused on Dashboard, Shipment, Customer, and Payments Analysis. Utilizing advanced AI tools such as decomposition trees and dynamic search bars, along with performance optimization techniques, I ensured that our reports provided smooth and scalable performance.

 **1. Dashboard:**

a. Logistic Shipment Trends: Displays shipment volumes by company, with Pharma Ltd. and AutoIndustries leading at 57 units each. Retail Co. follows with 53 units, and Tech Corp. at 34. Higher shipments from Pharma and AutoIndustries are driven by consistent demand in medical supplies and automotive components.

b. Delivery Status: Pharma Ltd. and AutoIndustries also top delivery numbers at 57 units each, reflecting strong operational efficiency. The consistent flow of deliveries is attributed to streamlined processes in pharmaceutical and automotive logistics, meeting urgent customer requirements.

c. Route Efficiency: The average route distance for shipments is 463 km. DHL covered the longest distance at 28,600 km, closely followed by UPS at 28,900 km, with USPS covering 24,000 km. FedEx had the shortest route coverage at 18,000 km, likely due to optimized routing for shorter regional deliveries,

d. Shipment Status: Currently, 52 orders are awaiting pick-up and shipment, while 58 are in transit, and 38 have been successfully delivered. A higher number of in-transit orders indicates active supply chains, with efforts to reduce wait times for pick-up through improved coordination.

2. Shipment:

a. Key Performance Indicators (KPIs): The dashboard shows that out of 200 total shipments, 99 were approved, while 101 were denied, leading to a roughly even split in the approval rate. Additionally, 29.50% of all shipments are currently in transit, indicating active movement within the supply chain, with a focus needed on reducing the denied shipments for improved efficiency.

b. Distance Hauled, Cost Paid: A Supply Chain Perspective:

Shipped: $174,547 in**** pending costs and 33,331 km covered reflect long-distance hauls and significant transportation costs. In Transit: $157,567 pending costs and 29,894 km indicate ongoing shipments with similar financial and distance metrics to shipped orders. Waiting for Pickup: $103,530 pending costs with 19,009 km highlight an opportunity to expedite pickups and reduce delays. Delivered: With $87,631 pending and 17,921 km covered, delivered shipments show the final leg of transportation at lower distances, highlighting potential for cost savings in completed deliveries.

Fast-Track or Snail's Pace?: Analyzing order status against average speed, shipped orders represent 25.37%, in-transit 29.22%, waiting for pickup 27.39%, and delivered 18.01%. The higher percentage of in-transit and pickup statuses suggests optimization opportunities to expedite order fulfillment.

c. Company Status:

Tech Corp: With 23.53% shipments in transit and an average distance of 465.92 km, Tech Corp's logistics show moderate transit activity, indicating room for increased throughput. RetailCo: Leading in transit activity at 35.85%, with an average distance of 472.43 km, RetailCo shows efficient, long-distance transport. Pharma Ltd: With 21.05% in transit and the longest average distance at 534.75 km, Pharma Ltd. focuses on longer-haul shipments. AutoIndustries: Close to RetailCo, with 35.71% in transit and 513.86 km average distance, AutoIndustries demonstrates a robust and efficient logistics operation.

3. Customer:

a. Key Performance Indicators (KPIs):

Distance Covered: A total of 100.14k km was covered across all shipments, showing the extensive range of your logistics network. This metric indicates the level of geographical spread and how far your shipments travel on average, highlighting the efficiency of route optimization. Delivery Cost to Customer: The cost to the customer for deliveries amounted to $273.30. This average delivery cost per customer offers insight into the pricing efficiency for shipping services. Total Deliveries: A total of 200 deliveries were completed, showcasing the operational volume of shipments processed successfully within a given period. Overtime Shipment Cost: $523.38k in overtime shipment costs indicate where operational inefficiencies or delays resulted in higher transportation costs. Reducing this figure should be a key focus to optimize profitability and reduce excess shipping charges.

b. The Transparent Supply Chain: A Customer's Dream: Dashboard leverages AI decomposition trees to analyze logistical data by breaking it down into key components such as deliveries, location, order status, companies, and document approvals. It enables users to understand the flow of shipments and see where issues such as delays or cost overruns may originate. By filtering through deliveries > location > order status > companies > documents approved, users can pinpoint exact areas for improvement, such as which regions are facing delays or where document approval processes slow down shipments.

c. Customer Status: A breakdown of customer details, such as full name, email, location, and the order status (whether orders are pending, in transit, or delivered). This transparency is crucial for enhancing customer satisfaction, as it allows both the logistics company and the customers to track order progress in real-time. This feature can also support customer service teams in addressing queries promptly by having all necessary information at their fingertips.

d. Distance Haul:

Long Haul: The majority of shipments cover 64k km, representing long-distance routes that require efficient management to minimize delays and reduce fuel and overtime costs. Medium Haul: A significant portion of the shipments travel medium distances, totaling 31k km. These are regional deliveries that offer a balance between speed and cost, ideal for businesses looking to serve neighboring areas. Short Haul: Short-haul deliveries account for 4.30k km, indicating shipments within proximity. These are generally quicker and cheaper to execute, allowing for same-day or next-day delivery options.

4. Payment:

a, Key Performance Indicators (KPIs): Cost increase percentage remains at 0%, indicating that there has been no escalation in shipment costs over the specified period, showcasing strong cost management and price stability in logistics operations. Shipments have not increased during this period, also at 0%, which may reflect a consistent volume of shipments being processed without fluctuations. A total of 200 documents have been submitted for shipment processing, highlighting the volume of paperwork handled, such as invoices, customs forms, and bills of lading. The total cost pending amounts to $532k, representing outstanding expenses that need to be settled for shipments. This could include delivery costs, customs fees, and other operational charges.

b. Document Status: This table provides a detailed breakdown of document submission for each shipment: Shipment ID: A unique identifier for each shipment. Document Type: This can include different types such as invoice, customs forms, or bill of lading, ensuring all necessary documentation for customs clearance and legal compliance is available. Document Approved: Indicates whether the document has been approved (Yes/No) to ensure shipments meet regulatory standards. Approval Status: Tracks the approval process of documents, helping to prevent delays due to missing or incomplete paperwork. Cost Expense: Categorized as High, Medium, or Low, this metric helps in assessing the financial impact of each shipment. Cost Over Time per Shipment: This value tracks how the cost per shipment fluctuates over time, allowing businesses to identify trends in increasing or decreasing expenses per shipment, providing insights for cost optimization.

c. A Closer Look at Freight Rates: This section compares the freight rates of major logistics providers: FedEx: $3.0k per shipment, which is the highest, indicating that FedEx might provide premium services or longer-distance deliveries. DHL: $2.6k, slightly lower but still within a competitive range. UPS: $2.5k, offering another affordable option for shipments. USPS: $2.3k, which is the most cost-effective for shipping, especially for short-distance or lower-weight shipments.

d. Shipment Cost Tracking: This section provides a breakdown of shipment statuses and the costs associated with each stage: Shipped: 33% of shipments are marked as shipped, representing the bulk of orders that have left the warehouse. In Transit: 30.11% of shipments are currently in transit, moving through logistics networks to their destinations. Waiting for Pickup: 19.98% of shipments are waiting to be picked up, which could indicate inefficiencies or delays in the collection process. Delivered: 16% of shipments have been successfully delivered, representing the final stage of the logistics process.

Areas of Improvements and Supply Chain Optimization Suggestions:

  1. Improve Shipment Approval Rate:

Current Status: Only 99 out of 200 shipments were approved, indicating that nearly half of the shipments faced approval issues.

2. Optimize Overtime Shipment Costs:

  • Current Status: Overtime shipment costs totaled $523.38k, which highlights a potential inefficiency in the scheduling and movement of shipments.
  • Recommendation: Focus on improving scheduling to avoid overtime costs by using predictive analytics to better plan shipment timelines. Prioritize shipments based on delivery urgency and resource availability to avoid delays.

3. Expedite Pickups and Reduce Delays:

  • Current Status: 52 shipments are still awaiting pickup, contributing to higher wait times and pending costs ($103,530).
  • Recommendation: Use real-time route and traffic monitoring tools to optimize pickups and assign trucks to nearby shipments. This could reduce waiting times and free up resources for quicker processing.

4. Enhance Route Efficiency and Optimize Freight Rates:

  • Current Status: FedEx, DHL, UPS, and USPS all have different rates, with FedEx having the highest ($3.0k) and USPS being the most cost-effective ($2.3k).
  • Recommendation: Analyze which routes and shipping partners yield the most cost-effective results for different delivery distances. Use AI-based dynamic route optimization to partner with the best-fit logistics provider based on shipment distance, urgency, and cost.

5. Reduce Transit and Waiting Time:

  • Current Status: 30.11% of shipments are in transit, and 19.98% are waiting for pickup. The extended transit times reflect inefficiencies that could lead to customer dissatisfaction and higher costs.
  • Recommendation: Implement a predictive analytics model that uses real-time data to anticipate traffic, weather, and warehouse delays. Automating rerouting and providing alternative delivery methods will expedite shipments in transit.

6. Focus on Cost Savings in Delivered Shipments:

  • Current Status: Delivered shipments show a pending cost of $87,631 and have covered 17,921 km.
  • Recommendation: After deliveries are completed, analyze the route optimization techniques used and focus on reducing repeat expenses (e.g., fuel, detours, idle time). By reviewing past deliveries, you can identify opportunities for further cost reductions.

7. Leverage Short- and Medium-Haul Opportunities:

  • Current Status: The majority of shipments are long-haul (64k km), while medium and short-haul deliveries cover 31k km and 4.30k km, respectively.
  • Recommendation: For short- and medium-haul routes, consider optimizing deliveries by bundling nearby orders or using local delivery partners. This can provide faster delivery times at reduced costs, especially for regional customers.

8. Utilize Decomposition Tree AI for Customer-Centric Insights:

  • Current Status: AI decomposition trees are in use to analyze deliveries, location, order status, and more.
  • Recommendation: Enhance the AI tree to include predictive models that can forecast potential delays or issues based on historical data. This will allow the company to proactively address potential bottlenecks before they affect customer satisfaction.

9. Document Approval Automation:

  • Current Status: 200 documents have been submitted, with approvals tracked through a manual system.
  • Recommendation: Integrate AI-based document management systems to automatically categorize, review, and approve or deny documents based on predefined rules. This will reduce the bottlenecks in document approvals, which could lead to faster shipment processing.

10. Address Outstanding Costs and Monitor Freight Rate Trends:

  • Current Status: The total pending costs amount to $532k.

  • Recommendation: Review current freight rate contracts with major logistics providers (FedEx, DHL, UPS, USPS) and renegotiate based on shipment volumes. Prioritize providers that offer the best rates for specific shipment distances and delivery times.

  • Recommendation: Streamline the document submission and approval process by implementing automated document validation tools that flag common errors before submission. This can reduce denials and ensure smoother processing.

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