Issue link: https://resources.tangoanalytics.com/i/1527585
When it comes to forecasting 3PD sales, Tango aims to understand how your current 3PD performance typically relates to the demand for 3PD in the trade area. The main signal Tango uses for gauging demand is the number of 3PD service providers operating in the same area, which typically ranges from about 0–4. Obviously, these providers aren't all equally established or known, and the dominant provider varies from one area to another, particularly internationally. But greater competition among 3PD providers generally correlates with greater 3PD sales. And by analyzing how your 3PD sales data relates to the competition in the trade areas you operate, Tango can predict your likely 3PD performance in new markets, taking into account a wide range of site and trade area characteristics and their correlation with performance throughout your portfolio. Demographics are another key factor that impacts 3PD performance. While there are a variety of reasons consumers turn to 3PD, the convenience is still largely a luxury, and it's most prevalent in more affluent trade areas. However, while there may be less demand for 3PD in lower-income areas, it's not non- existent. Different demographics use 3PD less frequently and for different types of orders, but in some densely Copyright © 2024 Tango. All rights reserved. 8 populated trade areas, there can still be enough of it to outperform locations in sparsely populated, yet affluent markets. While you likely don't collect any demographic data about your customers, by combining your sales performance data with our demographic datasets from partners like Experian, Applied Geographic Solutions, and Synergos Technologies, we can understand how your performance relates to demographics and the prevalence of 3PD competition. Additionally, we use mobile movement data from Near Intelligence and traffic flow data from INRIX to develop a more nuanced understanding of how proximity to demand, visibility, accessibility, and other characteristics typically relate to your 3PD performance. Predicting 3PD sales in new markets isn't simply an "if this, then that." The relationships between these factors at scale and from one market to another is so complex that it takes artificial intelligence and layers of machine learning algorithms to understand, model, and forecast them. And that's why Tango's advanced predictive analytics and team of experts gives you the lowest margin of error in the industry. 2024 Calculating Carry Out: Predicting 3PD at Your Locations