Enhancing Business Intelligence in the Logistics Sector Through Advanced Data Visualization Techniques


Business intelligence is the use of data analysis technologies and tools to obtain insights and optimize processes within the logistics sector. It involves collecting and analyzing data from suppliers, distributors, manufacturers, retailers, and customers.

Table of contents

The role of data visuals

Predicting demand

Managing inventory

Managing supplier relations

Route planning

Supply chain risk management

Performance monitoring

The role of data visuals

Visualization can provide logistics companies with an overview of which suppliers’ offerings meet customers’ requirements, which don’t, and how pronounced the tendencies are. As of 2024, 44% of brands have dedicated digital insights, analytics, and data science teams. Visual data tools make managers 28% more likely to find information on time. Businesses that use visualization make decisions five times faster than those that don’t and are also three times more likely to implement these decisions.

The data visualization industry is projected to reach $19.20 billion worldwide by 2027, corresponding to a CAGR of 10.2%.

Advanced visualization can forecast demand

Logistics providers can use historical data and predictive analytics to forecast demand accurately. By analyzing market conditions, seasonal trends, and customer behavior, they can optimize distribution strategies and inventory levels to meet client demands while reducing costs.

Inventory management

You can use data tools to create charts that showcase the current and future inventory levels for each warehouse, delivered item, or channel and if they correspond to demand and supply. Visualization can be used to create heat maps showing the inventory turnover rate for each item and how it changes depending on the season, time, or place. You can also use data visuals to create histograms that show how your inventory age is distributed and how that affects your inventory quality and costs.

Supplier relationship management

Visualization improves supplier relationships by evaluating supplier performance based on a visual overview of pricing, quality standards, etc. This makes it possible for logistics companies to identify the best-performing suppliers, mitigate risk, and negotiate better contracts.

Route planning

Data visuals can be used to determine the best routes for your vehicles to deliver your products. These tools can create maps that show your customers, vehicles, and warehouse locations and how traffic, roads, and distance connect them. You can also use data visuals to create charts comparing time, cost, carbon footprint, distance, and other route criteria. Visualization techniques also show the use and capacity of your fleet and how they impact route performance.

Statistics on route optimization software

More and more companies are grasping the benefits of route optimization software. In 2022, the size of this market was estimated at $3.7 billion. It is expected to reach $12.4 billion in 2030. According to a recent Geotab survey, route optimization is the top priority for 63% of fleet managers who use telematics technology, which draws attention to the importance of efficient planning in the logistics sector.

According to a survey for Verizon Connect, just under three-fourths of government fleets utilize GPS fleet tracking technology. 75% of logistics companies using GPS technology state that it is extremely beneficial.


Data universality

Data-driven insight can be applied throughout an organization. Advanced data techniques allow teams in operations, marketing, sales, products, and customer support to access valuable information and use insights to make smarter choices and drive growth.

Supply chain risk management

Data insight can help identify and mitigate supply chain risks, such as supplier failure, geopolitical events, and disruptions due to natural disasters. By analyzing historical data patterns, logistics companies can diversify their suppliers, develop contingency plans, and enhance supply chain resilience.

Performance monitoring

Finally, you can use visualization techniques to see your KPIs for delivery time, quality, accuracy, customer satisfaction, and other logistics functions. They can be used to create bar charts revealing how your logistics performance compares to industry standards or your targets. Visualization tools can create scatter plots showing how performance factors relate, such as quality and cost or customer loyalty and satisfaction.


Should I know any rules about the visualization of data?

There are three ways to use these tools for maximum impact: create a visual, compare it to a real object, and give context to your numbers.

What are the minuses of visualization?

  • Axes make the difference.
  • False correlations.
  • Average is not the best statistic.

Which region has the biggest market share for route optimization software?

North America dominates the route optimization software market. The market will see the fastest growth in the Asia Pacific region.