Research says that 50 percent of the logistics and transportation organizations in the industry lack digital culture and training. There is no other industry that can benefit as much as logistics from digital transformation. Currently, the industry has access to so much valuable data, which when utilized properly can lead to improved performance and generate many more loyal customers.
Freight Management Software
In fact, the freight management industry is expected to grow from USD 10.76 billion (as achieved in 2018) to USD 17.45 billion in 2023. The following factors will contribute to this growth:
- Reduced transportation time.
- High supply chain visibility.
- Improved customer satisfaction.
- Optimized cargo safety and security.
- Reduced logistics costs.
Based on the complexity of procedures and growing logistics demand, two essential factors that influence the entire supply chain are speed and efficiency. These factors, which can be streamlined through technology, offer a competitive edge to logistics providers.
Investing in robust freight management software can reduce the hassle of several logistics processes. Let’s see how.
Planning is one of the initial steps of logistics, which is very crucial for its entire life cycle. It involves several factors, aspects, and parameters that contribute to operational planning. From the purchase of goods to storage, transport, and delivery, various factors are considered for the transport time, location, costs, etc.
The objective of this planning is to develop a strategy with minimum delays, maximum profits, and reduced cost and resource consumption. Here, unforeseen circumstances can enter the system anytime. Hence, this is an additional factor which is frequently considered.
Freight management software has the ability to control and plan transport strategy based on the underlying, time-intensive factors. You can consider every involved parameter and still reduce operational costs, speed of delivery, and quality of transportation.
The right software would help you with the following tasks:
- Matching the needs with the right courier.
- Selecting the right carrier for a specific freight based on KPIs
- Creating and tracking the most efficient route map of shipment.
- Automating paperwork, scheduling and delivery task allocation
Coordination Across Stakeholders
The logistics life cycle is a complex structure which involves several individuals, information, activities, and related resources. Even in a single delivery, a lot of people, resources, and informational systems are required to coordinate with each other. Everyday hundreds and thousands of these transactions are carried out. If you miss any of the factors, the whole supply chain would have to pay for the consequences.
For instance, consider a scenario where you must send a priority shipment as a normal shipment. The customer has paid extra for speedy delivery but eventually had to wait 10 days for the product. Instances like these can end up spoiling the customer experience and effectiveness of the whole logistics system.
Freight management software can help you improve coordination by offering:
- Ability to judge optimal routes based on traffic, quality, and length.
- Ability to modify routes in case of last-minute issues.
- Real-time tracking of freight, truck, and drivers’ location.
- Simplified operational efficiency with reduced bureaucratic responsibility.
Manually executing every task has its own drawbacks. Take billing and invoices for instance. If you forget to generate the invoice of one supplier or vendor, you would have to wait till the next month to raise the invoice. While this is still a small issue, what if you make errors in raising the invoice? The calculations may be wrong, or you can lose track of the invoices.
Freight management software can process data including invoices, billing, proof of delivery and other documents. Automating and digitizing these activities does away with human errors to a great extent and allows your employees to work in strategic roles.
If logistics is important for you, freight management software is inevitable for your business. It automates processes, improves operational efficiency, enhances logistics flow, reduces delays, decreases costs, and ensures traceability of the freight. With the right logistics support, you can achieve profound business expertise and offer cutting-edge transport services.