What is the role of data analytics in logistics management?

Data analytics plays a crucial role in logistics management by enabling companies to make well-informed decisions. Through the analysis of data, logistics professionals can identify trends that inform operational strategies, leading to improved efficiency in logistics processes. This can include optimizing inventory levels, which ensures that the right amount of stock is available at the right time, reducing excess inventory holding costs while avoiding stockouts.

Moreover, data analytics helps in understanding performance metrics, assessing supply chain performance, and pinpointing areas that need improvement. By leveraging analytics tools, logistics teams can forecast demand more accurately, allocate resources effectively, and enhance overall supply chain responsiveness. Therefore, option C highlights the essential function of data analytics in the logistics sector, emphasizing its role in data-driven decision-making and operational optimization.