Take a look across the logistics industry and you will find a common thread running through factors ailing the industry. Lack of planning, ineffective decision making and poor logistics visibility are some of the major factors that lead logistics companies to incur high costs, miss delivery timelines and lose valuable business.
The key to more cost-effective logistics operations is smarter processes which can be brought about by innovative technology that creates more streamlined and more effective logistics processes. Technology innovation has shown us exactly how much of a difference automation can make in reducing costs and increasing productivity. With the boom in cloud-based software, nearly every business function can be automated.
The advent of the cloud has brought one-stop solutions within reach of companies irrespective of their size. The best part is infrastructure expenditure can be curtailed to a great extent and the entire organization can be brought under a single platform with tight checks and balances, allowing the company to focus on its core activity.
However, logistics companies should be cautious about using technology without understanding their impact on processes, as it may not be effective in reducing logistics costs. Merely replacing or upgrading the software, without integrating processes, may actually worsen the situation. Rather than introduce more effective standardized global processes, the new system will only present a different way from the old processes. The selection of technology therefore should be influenced by its ability to improve productivity and financial performance.
The main aspects of logistics technologies influencing the market will be cloud-based end-to-end solutions, track and trace and real-time visibility. Connecting the different operations of the freight business to a wider digital platform would lead companies towards tighter integration and would mean more precision and greater transparency across the organization and customers.
Players who look to offer increasingly sophisticated shipping solutions need to have strong backing of technology. With end-to-end technology, enabled processes would be able to communicate with each other seamlessly, leading to tighter integration and greater cohesion in the company’s services.
Cloud technology gives the advantage of standardization across the organization spread across geographies. It will eventually result in logistics companies freeing up their redundant practices and later dispensing with the need for them altogether. This is possible through concerted efforts by companies looking to make simpler and more efficient processes and optimize their use.
The use innovative technology platform will enable logistic companies to have greater visibility into demands of their customers and the supply chain. The visibility, in turn, would ensure better operational planning leading to enhanced service and increased efficiency.
Real-time data allows companies access to stream of information about their business that can drive better decision making and faster response to market demand and changes. Using advanced analytic tools, companies formulate logistics strategies anchored on more reliable intelligence instead of relying purely on the experience of their employees.
Technology offers ways to reduce financial risk, enhance efficiency, and achieve significant cost reduction. By reducing the logistics cost effectively through the use of technology business of all sizes can improve their financial performance. Reduced costs lead to savings that ultimately add to the bottom line.
The name Amit Maheshwari is synonymous with ‘IT in Logistics’. Amit’s 25 years of domain knowledge, vision and deep understanding of logistics marks him as a major thought leader in the industry. His passion for technology has led to the creation of exceptional innovation that has changed the way the industry operates today. Under his leadership, Softlink Global has become a leading global logistics software provider. One of his major creations Logi-Sys is a comprehensive ERP for the freight and logistics industry that has become a global success.
