Data Visualization for Decision-Making in Distribution and Logistics

Distribution and logistics operations generate vast amounts of data, from inventory levels and shipping times to route efficiency, fuel usage, and warehouse performance. Without effective visualization, this data remains trapped in spreadsheets, databases, or siloed systems, making it difficult for decision-makers to spot trends, risks, and opportunities.

This is where data visualization for distribution and logistics companies transforms how these organizations operate, especially when powered by tools like Microsoft Power BI integrated with Dynamics 365 Business Central.

Distribution and logistics businesses rely on the ability to make quick, accurate decisions to stay competitive. Every delay, stockout, or inefficiency can have a negative impact on customer satisfaction, profit margins, and long-term growth. The problem is not a lack of data; it’s how to interpret it effectively. Traditionally, leaders in these industries have had to wade through static reports or complex spreadsheets, trying to spot trends or anomalies buried deep within rows of numbers. This approach often results in reactive decision-making rather than a proactive strategy.

Data-driven decision-making with Power BI

Power BI visualizations, when integrated with Business Central, change the game. They provide a dynamic, real-time view of business performance that helps leaders see what’s happening across their operations and why. Instead of spending hours compiling reports from various systems, decision-makers can interact with visual dashboards that consolidate data from warehouse management, purchasing, sales, finance, and even external sources, such as weather or fuel prices. This integration enables distributors and logistics providers to monitor key metrics at a glance, identify issues before they escalate, and make data-driven decisions with confidence.

Consider the challenge of managing inventory across multiple warehouses. Inaccurate or outdated information can lead to stockouts, excess inventory, or costly expedited shipping. With Power BI visualizations linked to Business Central’s inventory data, managers can instantly view stock levels, turnover rates, and demand patterns in real time. They can filter this data by location, product category, or supplier, and drill down into specific transactions to gain a deeper understanding. This level of visibility enables smarter replenishment decisions, optimized warehouse space utilization, and more accurate forecasting.

Another area where data visualization is transforming decision-making is in fleet and route management. Logistics providers face constant pressure to deliver goods faster and more cost-effectively. Static reports on delivery times and fuel usage don’t provide the agility needed to respond to changing conditions on the ground. Power BI’s ability to integrate geospatial data with Business Central’s shipment records allows managers to visualize fleet locations, track delivery performance, and compare route efficiencies. This helps teams identify which routes consistently experience delays, where fuel consumption could be reduced, and how changes in traffic or weather patterns might impact deliveries. The result is more efficient operations, lower costs, and a better customer experience.

Supplier performance is another critical factor in distribution and logistics. A single weak link in the supply chain can ripple through operations, causing delays and unexpected expenses. By visualizing supply chain data, such as delivery metrics, defect rates, and pricing trends, through Power BI dashboards connected to Business Central’s purchasing data, procurement teams gain the insights they need to strengthen supplier relationships and mitigate risks. Instead of reacting to late shipments or quality issues after the fact, they can spot trends early and collaborate with suppliers to resolve problems.

Visibility of metrics that matter

Perhaps one of the most powerful aspects of using Power BI with Business Central is its ability to foster a data-driven culture across the organization. Visual dashboards are not just for executives — they can be configured for warehouse supervisors, drivers, purchasing agents, and customer service teams. This accessibility ensures that everyone works from a single source of truth and can see how their actions impact broader business goals. For example, a warehouse team can track picking accuracy and cycle counts, while a customer service representative can monitor order fulfillment times and proactively update customers. Accountability and collaboration naturally improve when every team member has visibility into the metrics that matter.

The flexibility of Power BI also allows distributors and logistics providers to move beyond historical reporting into predictive and prescriptive analytics. By layering AI and machine learning capabilities on top of Business Central’s rich transactional data, businesses can forecast demand, model what-if scenarios, and even receive alerts when certain thresholds are exceeded. Imagine being notified in real time if a key supplier is trending toward late deliveries or if fuel costs for a particular route are spiking unexpectedly. This proactive approach enables decision-makers to course-correct before issues impact customers or the bottom line.

KPIs to watch

When configuring Power BI and Business Central, the question naturally becomes, What data are you most interested in?

The following KPIs are a good start for most logistics and distribution companies:

Occupancy rate is a key performance indicator (KPI) for warehouse efficiency and capacity management and refers to the percentage of available warehouse or storage space that is currently in use. A high occupancy rate (80%-90%) generally indicates efficient space utilization. A low occupancy rate generally indicates underutilized space and may suggest excess capacity and unnecessary costs, while overutilized space can lead to bottlenecks or increased handling time.

Occupancy Rate (%) = (Used Storage Space / Total Available Storage Space) × 100%

Turnover rate measures how quickly inventory is sold, used, or moved through a warehouse over a specific period. It’s a critical metric for evaluating the efficiency of inventory management and supply chain operations. A higher turnover rate indicates that goods are moving quickly through the warehouse, which reduces the need for long-term storage and lowers holding costs. A high turnover rate is generally a sign of strong demand and efficient operations.

Turnover Rate = Number of Units Shipped or Sold / Average Number of Units in Inventory

Lead time refers to the total time it takes for an order or shipment to move through the supply chain, from the moment it is initiated to the moment it is delivered or available for use. It is a critical metric for measuring supply chain responsiveness and efficiency. There are different types of lead time. For example, order fulfillment lead time refers to the time it takes to pick, pack, and ship an order. In contrast, supplier lead time refers to the time between placing an order with a supplier and receiving the goods at a warehouse or distribution center. Reducing lead times tends to decrease the need for expedited shipping, emergency sourcing, and excessive inventory buffers.

Order shipped complete and on time (OSCOT) is a critical performance metric that measures a company’s ability to fulfill customer orders accurately and on time. It reflects both the operational efficiency and the quality of customer service. High OSCOT performance reduces backorders and delays, leading to stronger customer loyalty. For logistics providers and distributors, it’s a direct reflection of operational performance and reliability.

OSCOT (%) = (Number of Orders Shipped Complete and On Time / Total Orders) × 100%

Stock accuracy is a cornerstone of effective logistics operations and refers to the degree to which the actual physical inventory matches the recorded inventory in a warehouse management system (WMS) or enterprise resource planning (ERP) system. Reliable inventory information helps prevent missed deliveries, substitutions, and backorders, which can erode trust.

Stock Accuracy (%) = (Correct Inventory Records / Total Inventory Records) × 100%

Turning raw data into a strategic asset

Ultimately, the combination of Business Central and Power BI enables distribution and logistics companies to make more informed decisions faster. It eliminates the blind spots that can hinder performance and replaces them with clear, actionable insights. Whether it’s optimizing inventory, improving on-time delivery rates, reducing operational costs, or enhancing customer satisfaction, data visualization turns raw information into a strategic asset.

In a sector where margins are tight and customer expectations are higher than ever, distributors and logistics providers can no longer afford to rely solely on outdated reporting methods or intuition. Those who embrace data visualization through Power BI, integrated with Business Central, will not only keep pace with change but also set the standard for agility and innovation in their industry.

Contact ArcherPoint by Cherry Bekaert to learn how Power BI and Business Central can help leverage data more effectively for distribution and logistics businesses.

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