Using data analytics to make better deliveries

By: | Issue #660 | at 08:00 AM | Channel(s): Air Cargo  Air Forwarders  

Using data analytics to make better deliveries

DHL Express is revamping, costing engine to catch up with e-commerce

E-commerce has changed operational, cost, and profit equations for air carriers in recent years. Consider a few ways delivering air freight has changed as a result of the explosion in online purchasing.

Many e-commerce purchases are directed to residences and the typical delivery involves just one shipment. Traditional business-to-business deliveries made by DHL Express typically involve anywhere from six to 50 shipments, which provides cost advantages to the carrier thanks to economies of scale.

The rate of failed deliveries to residential addresses is high and that costs carriers’ lots of time and money. People are typically not home during the day while businesses are usually open all day.

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Peter Buxbaum's avatar

American Journal of Transportation

More on Peter Buxbaum

Peter Buxbaum has been writing about international trade and transportation, as well as security, defense, technology, and foreign policy, for over 20 years. Besides contributing to the AJOT, Buxbaum's work has appeared in such leading publications as Fortune, Forbes, Chief Executive, Computerworld, and Jane's Defence Weekly. He was educated at Columbia University.