Having an efficient system of supply chain management is a crucial part of the success of any business. And management of the logistics is necessary for effective supply chain management. If you cannot transport goods to the customers on time or if you do not receive raw materials on time, you will never be able to prosper.
Managing the logistics of a big organization is not easy. If the management is not proper, inefficiencies crop in, and as a result, the profit margins are hampered. So if you are someone who has been facing quite a few challenges with the turnaround time of the logistics department, then you must try out logistics IT solutions.
5 Ways By Which Logistic IT Solution Can Transform The Way In Which You Run Your Business
Management of logistics is a tough challenge because a logistics management system has to coordinate the movement of goods over long distances. So if you have software that has the ability to automate and integrate, life becomes easier when you have to manage multiple consignments in a day.
1. Better Control Over The Movement Of Transportation To And From Your Factories
One of the biggest reasons for the delay in the transportation of goods to and from your factory is the lack of effective control over the trucks that do the transportation work. Lack of adequate control may also lead to the destruction or decay of your goods en route.
For instance, your goods are being transported across national highways, and then suddenly there is a possibility of rain and storm. If you have perishable goods, then it is essential that the goods need to be transferred to a local warehouse to prevent any spoilage. However, due to a lack of adequate control, the trucks (transportation vehicles) cannot make it to a local warehouse in time.
However, if you have software that manages your logistics operations for you, you can have real-time information on where your vehicles are, and this real-time positional information can be integrated with other inputs like the position of local warehouses. Also software can keep a tab on the weather predictions, and your transportation trucks can schedule their movements according to the weather predictions.
In this way, you can save goods worth several dollars from getting decayed and destroyed if you have an automated system that links the position of your trucks and the location of a warehouse or storage unit.
2 Lesser Delays Due To Lack Of Shipping Related information
If you are into exporting your products to other countries, then you have to use the shipping ports in your country that transport most of the merchandise that is to be exported to another nation. Now even the best ports in the world face delays as they have inadequate information about the timings at which the ships will dock at the ports or the time when they will leave the ports.
So if you are to transport your products on any of the ships that transport goods via international waters, you too will have to face many delays for no fault of yours. However, if you have an automated system that can track the delay in the docking and the departure times of the ships that will eventually carry your goods, you can save a lot of money.
If you know the correct time at which the ships will arrive, then you or your employee need not waste time waiting in the port. Moreover, when the ships are delayed, the vehicle that carries the goods to the port has to wait in the port for long hours, and this locks them up in an unproductive manner.
3. Lesser Stoppage Time At Tolls And Customs
One of the major reasons why transportation of goods across national highways or across states is difficult is because the customs and toll agents are quite strict about the paperwork of your goods.
Many trucks have to wait for long hours at the toll station because paper verification takes a lot of time. However, if you have software that has uploaded all the paperwork to the databases of the toll officers or customs officers, then the time taken for the verification can be reduced to a great extent.
4. No Delays Due To Incorrect Addresses
One of the most avoidable delays when it comes to logistics is not giving the incorrect address to the transportation company. But this mistake does happen, and as a result, the supply of goods gets delayed for many days.
Furnishing incorrect addresses to a transportation company also adds to the bill because the transportation company will charge you for every extra trip that they have to make.
So if you have software that informs the transportation company of the address where the goods have to be transferred, then the chances of error are reduced to a minimum.
5. Better Reputation For Your Business
One of the most common causes why your client may be annoyed with you is delayed services or delayed disbursement of goods. So if you have an IT system that manages the logistics component of your company for you, then your clients will no longer be offended by a delayed shipment of goods. This will improve the overall image of your company. And your punctuality will be rewarded sooner or later.
Many company owners are apprehensive about adopting an IT system for the management of the logistics needs of their company. However, having an IT-backed system for the management of your company’s logistics can be a great boon. It will improve your reputation in the market and your profit margins in no time.
So if you have the resources, you should go for an IT-backed logistics solution as soon as possible. But when you choose a software, go for a system that your staff is already familiar with so that there can be a smooth transition from the manual to the software-based system.