How to Use Shipping Data to Identify Customers' Accurate Purchasing Peaks

tendata blogMarket Insights

ten data blog28-03-2024

To the shipping data-savvy bosses out there, have you ever encountered a situation like this: after analyzing shipping data, it becomes evident that a customer has been making frequent purchases during a certain period, but when you approach them to discuss an order, they inform you that they have already established a long-term partnership with a stable supplier?

Indeed, shipping data exhibits a certain degree of lag, typically reflecting past trade activities rather than immediate purchasing decisions.

However, by analyzing the relationship between port-to-port shipping distances and customer decision cycles, we can infer the client's supply chain management strategy and approximate decision-making timeframes from another perspective.

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Delivery Time Prediction

With shipping data, understanding the average transit time and port distance from specific suppliers to customers' locations allows us to estimate the delivery duration. By combining customs clearance dates with actual arrival dates in order records, we can gain insights into the time it takes for customers to receive goods after placing orders, known as the lead time.

Inventory Turnover Analysis

Using shipping data, if we know the customer's inventory turnover rate or sales velocity and combine it with transit time, we can deduce when the customer likely placed a purchase order to ensure sufficient inventory without risking stockouts. For instance, if a product takes a month to ship from China to the United States, and the customer consistently maintains a two-month inventory, they may begin negotiations and place orders approximately a month and a half before their stock reaches the safety stock threshold.

Seasonal Demand Preparedness

For products with clear seasonal demand patterns, considering long-distance shipping, customers may engage in procurement well in advance to prepare for peak seasons. Analyzing the import of goods from specific ports during different seasons can help estimate future purchasing decision times.

Logistics Cost and Efficiency Considerations

Transportation distance affects logistics costs and delivery reliability, which is also a crucial factor in customer supplier selection. Longer transportation distances imply earlier decision-making times to coordinate logistics resources and arrange ships, trains, and other transportation modes.

Risk Management

Long-distance shipping also entails higher supply chain risks, such as weather and vessel schedule delays. Therefore, customers make procurement decisions in advance to ensure timely supply and leave sufficient buffer time.

Therefore, when examining shipping data, comprehensive analysis combining factors such as port-to-port shipping distances, delivery times, industry patterns, and customer demands can help infer the customer's procurement decision cycle and their requirements for supply chain responsiveness. Through market analysis, customer profiling, lead generation, customer background checks, customized strategies, establishing connections, business negotiations, and customer management, Tengdao provides digital precision marketing solutions to help businesses enhance forecasting accuracy, accurately target markets, and discover new opportunities.

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Shanghai Tendata Information Technology Co., Ltd. is headquartered in the Lujiazui Financial District and has been deeply involved in the import and export big data services industry for 17 years. Tendata Shanghai is a comprehensive information service provider that is rooted in the field of international trade, utilizing big data and artificial intelligence as its foundation. We specialize in data collection, mining, application, and services in the international trade sector. Additionally, we offer extended services such as industry consultation and trade facilitation.

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Since its establishment in 2005, Shanghai Tendata has grown to have a workforce of over 500 dedicated professionals. We have provided effective market expansion and marketing solutions, as well as customer management services, to more than 40,000 domestic and international import-export enterprises. Rest assured when using Tendata data as we have an experienced product development team and a dedicated after-sales support department. (>>>Click to Inquire about Tendata Products<<<)

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