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Four Things Even An Advanced Logistics Software Cannot Do

Thanks to rapidly evolving technology, a logistics software today can do much more than a traditional logistics management system. Its ability to scale operations, leverage technologies like machine learning (ML) to enhance delivery planning, orchestrate disparate logistics and supply chain systems to generate business-critical data and do much more, is making it a key differentiator between a good and bad supply chain. But then there are a few things an advanced logistics software still cannot do.

An advance logistics software cannot reduce traffic congestion during peak business hours, it cannot alter your employee's intentions, it cannot put highway pirates behind bars and finally, it cannot tell you what your customer wants to buy next. But it can definitely do things that can positively impact these. Confused? Let’s help you understand what we are trying to say.

Advanced Logistics Software

An advanced logistics software cannot reduce traffic congestion, but it can help you avoid it.

Real-time dynamic route optimization capabilities empower supply chain stakeholders and delivery executives to constantly get updates on delivery routes and use the most efficient delivery route to execute delivery. Leveraging real-time dynamic routing capabilities delivery executive can know the traffic conditions to a customer’s location in advance and avoid routes with congestions.

To optimize delivery costs, multiple deliveries with quick turnaround time is becoming increasingly popular, especially when it comes to delivering food. Leveraging dynamic route optimizing capabilities, businesses can increase the number of deliveries completed in a day and keep a check on operational expenses.   

Real-time dynamic route optimization also helps businesses minimize empty mile journeys and eliminate vehicle idling time and optimize the productivity of the delivery fleet.

Logistics software cannot alter the intentions of your employees, but it can motivate them to be productive and help them avoid taking unnecessary breaks.

Frequent stoppages, unplanned breaks, and unnecessary diversions shoot up delivery turn-around-time and result in increased costs, poor productivity and bad delivery experience. An advanced logistics platform instantly trigger alerts informing delivery stakeholders in case there are unplanned stoppages or diversions. By intelligently geo-locating delivery routes, a logistics software makes it possible to know if delivery executives are crossing certain virtual perimeters. This drastically increases productivity and ensures faster delivery TATs.

A modern logistics software cannot put highway pirates behind bars, but it can definitely reduce delivery risks.

The 2018 Semi-Annual Global Cargo Theft Intelligence and Advisory Report highlighted that as much as 82 percent of theft occurs in the truck modality compared to less than 7 percent by rail. Besides, 66 percent of theft happens while cargo is in-transit as compared to 11 percent while in the warehouse. Cargo theft is a huge problem, especially in the US. According to a report, cargo theft is a $15 to $30 billion-dollar problem each year in the United States.

Unlike traditional logistics systems, machine learning powered modern logistics platforms can trigger alerts informing about possible theft. Capabilities like this can help businesses save millions of dollars. A large steel manufacturer reduced chances of theft and pilferage by 57 percent owing to machine learning capabilities of a modern logistics platform.

Take this use case as an example. A global courier, parcel and express mail service provider have incorporated ML capabilities in its supply chain and logistics processes to mitigate risks.

This global organization combines machine learning and natural language processing to ensure early identification of potential exceptions and disruptions to the company's supply chain and logistics. The ML powered supply chain and logistics platform monitor more than 130 risk categories including crime, environmental factors, financial losses among others and inform customers about it even before such unfortunate events occur. This drastically increased the organization's customer delivery happiness score and customer engagement.

An advanced logistics software cannot tell you what clothes a customer wants to buy for Halloween, but it can drastically boost her buying experience and increase customer happiness score.

Till date, it would be a bit unfair to expect a logistics software tell us about the likes and dislikes of a customer. Having said that, we are sure such expectations will not be unrealistic five-six years down the line. But what’s important is that modern logistics software can immensely improve a customer’s buying experience.

A modern logistics software ensures a hundred percent customer visibility of delivery processes. Customers get to know when will a shipment be delivered, who is bringing the shipment, where exactly is the shipment and in case there are delays. Also, it ensures that customers can choose when she wants a shipment to be delivered and where she wants it. By ensuring efficient delivery routes, increasing driver productivity and adhering to ETAs, a logistics software improves delivery happiness scores and ensures customer loyalty.

The pace at which technology is evolving it can be safely assumed that with regards to logistics software the possibilities of disruption is endless. The question is how long is your ‘can do’ list with respect to your logistics software?

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Large organisations today, have complexity in managing orders and it this in turn, escalates supply-chain costs and also the inaccurate promises. A centralized view of orders cuts down the complexities, and enables them to identify and rectify the issues before they become an issue for the customers.