Data drill down: logistics, supply chain, transportation

The transportation and logistics industry is one of the most complex when it comes to intricate processes. In fact, companies…

The transportation and logistics industry is one of the most complex when it comes to intricate processes. In fact, companies operating in this industry often collect tons of information they don’t efficiently use for lack of a system in place for data integration, organization, and insight extraction.

To give an idea of how much information there is floating around, consider that besides their own internal operations, transportation and logistics companies often provide 3rd party logistics, work with several different partner agencies, own their own fleets, have partnerships with fleet companies, and more. All together this makes for a lot of internal, partner, and customer data which can either be incorporated together and investigated for highly specific information or lost in the mess.


Want a deeper dive into operational analytics for logistics, supply chain, and transportation? Read our full whitepaper now.


As a highly competitive industry, companies that want to stay on top in transportation and logistics must find ways to improve operations, distribution, and fleet management and not fall into a data mess. This is where the implementation of business analytics comes in. The use of a full stack business analytics platform can break down data in order to investigate performance information related to internal and external operations and pinpoint areas for optimization and increase profitability.

Measuring KPIs with Profit Tools

Profit Tools is a great example of how transportation and logistics companies require better systems for data investigation. Profit Tools works with shipping companies to analyze complete trucking life cycle data and identify places for improvement for its clients. The shipping industry is both extremely competitive while also showing rather low profit margins of only 5-10%. Profit Tools helps to increase those margins for its clientele by providing them with information about their own operations.

The problem Profit Tools encountered was that without an analytics system in place to measure KPIs and assess operations, its customers couldn’t confirm whether a particular route was actually profitable. Though its customers could gauge how much they were spending and how much money was coming in, they needed more intricate analytics than just a skeletal structure of money in and money out.

Profit Tools understood that its customers needed more information for their calculations and the standard reports it was offering them didn’t give enough options for them to dig through their data as needed to find – and work on – their core issues. The real problem, of course, was not about having data available, but rather, what to do with all the data that was available but unused. How could Profit Tools provide both itself and its customers a way to dig deeper into operational figures to locate areas for optimization?

Drilling down to optimize

Profit Tools solved its problem by implementing business intelligence software. First, it implemented it for customers, and then upon seeing the value for its own operations, it deployed the tool internally throughout the entire company. Customers of Profit Tools now have their own module that provides analytics and key KPIs they didn’t have access to before. This gives them the freedom and capability to improve on their own overall revenue cycles by drilling down to identify their biggest problem areas.

Profit Tools

After implementing the platform, Profit Tools was able to identify weak points and optimize routes and carrier management resulting in an increase in revenue for clients. Much of the increase came from streamlining the fuel department which itself saw an 80% increase in profitability.

The result for Profit Tools is increased revenue and satisfaction for clients.

T&L meets business intelligence

Profit Tools is a great example of how in the most basic way, merely having more in-depth access to data results in better business. While one major benefit to the company and its customers was in drilling down into data to pinpoint areas for optimization, it also benefited from having a way to share analytics with customers, streamlining its reporting by integrating all its data sources together, and creating a holistic view to make better data-driven business decisions.

Pinpointing areas for optimization isn’t the only way analytics can benefit logistics, supply chain, and transportation organizations. To read more, download our full whitepaper.

Tags: |