New technologies create new opportunities. One in particular – online logistics management – provides powerful benefits to manufacturers, suppliers, retailers and other companies that ship goods around the corner or across the globe. Discover why you should digitize the logistics supply chain.
The right digital solution will boost connectivity in the supply chain. It will link shippers and carriers, and provide new user-friendly methods of communicating, collaborating, and accessing information. It will also warmly welcome partners in the shipper’s existing supply chain, and provide them with seamless integration.
What really happens when a company digitizes logistics management?
Get it done faster
First of all, the shipper saves time. One click of the mouse connects each shipper to their entire closed-pool of trusted carriers. These parties can securely share all transportation and supply chain data in real time, 24/7 and across all geographies. Logistics management is now always on and always available: no need to wait for someone to return to their desk and no time zone-induced traumas. Automation speeds every process, and response times shrink to nanoseconds.
Get it done leaner
Then of course the shipper uses fewer resources. Paperless digital processes and communication consume less while accessing more – each shipper can reach an entire global network of suitable carriers, interrogate and reveal in-the-moment market prices, and pick the preferred price-to-performance ratio from a sufficient range of offers. The right digital solution will also enhance loading/offloading processes, cut truck congestion and waiting times, and improve on-site safety. Ultimately, it will optimize carrier scheduling and routing, reducing empty miles and overall CO2 emissions.
Get it done smarter
Currently there’s way too much complexity in logistics management. No-one can capture adequate shipment detail using just an Excel file nor properly analyze the relative merits of individual bids. And with the right digital solution, shippers can replace multiple different systems with one. To find the right solution, look for proof of easy plug-and-play connectivity and simple integration with existing transport management systems and enterprise resource planning environments. Once implemented, the new system should support best-practice processes and standardization, creating a smarter way of working in the end-to-end supply chain.
Get it done cheaper
Shippers that have already digitized their supply chain report substantial transportation and process savings. They get better carrier prices – companies using the right logistics bid invitation process can procure freight services at a moment’s notice, achieving the best freight rates (up to 19% reduction) with lower admin costs (up to 30% reduction). They also gain control of transportation expenditure at the end of each shipment – digitized billing offers a popular and proven alternative to outsourcing. And by focusing on coverage and profitability instead of pure volume-grabbing, carriers can sign contracts in their preferred lanes to optimize their own operations.
Get all these improvements again and again
A digital supply chain enables continuous improvement. Shippers should see accurate KPIs (key performance indicators), at-a-glance graphical dashboards, and formal reports to help analyze carrier performance and inform future decisions. A single centralized database of rates, surcharges, transportation options, and contracts is essential, along with transport visibility on every item throughout its journey and on arrival. Ideally, the solution should let all parties track order status in real time, so they can offer proactive levels of customer service to cut complaints, increase loyalty, and build competitive advantage.