Discover best practices in automation of logistics processes

by | 03/09/2020

6 minutes to read

Technology is increasingly present in companies, and with carriers, it could not be different. This sector is exploring some resources, such as robotics, integrated management systems and logistics automation, in order to improve the provision of services.
Currently, this solution can be implemented in the process of material flow, storage and shipping. That is why it is important to invest in ways to improve results and increase the efficiency of services.
With these benefits in mind, we will present, throughout this article, some of the ways in which this strategy is able to optimize your company’s practices. Enjoy your reading!

What is logistics automation?
The concept of logistics automation refers to all the technological resources available in a transport management system (TMS).
Automation, therefore, is related to the reduction of manual tasks in the processing of freight and the acquisition of better transport options. In addition, the system can be configured so that the manager can obtain automatic notifications and real-time updates of freight information.

What are the best practices and their results?
It is essential to know how investment in technology can work in practice and what to expect from this technological renewal.

Elimination of errors
The occurrence of human failures tends to increase transportation costs, generating highly uncomfortable situations, such as having to pay twice for a single shipment or supporting a higher value due to the incorrect classification of a commodity.
These errors also affect the relationship with customers who do not receive their goods according to their request. In this scenario, the resources of the automation of logistic processes serve to provide:

. the integration of products through its management system;
. access to the customer register and the address book;
. automatic processing and storage; and
. accounting for fuel and accessories costs.
With this, the manager has the guarantee that inconsistencies in his records will be eliminated, which favors the reliability of work processes.

Resource savings
Minimizing costs is one of the most important objectives for the management of a transport company. This competitive sector depends on high investments for its maintenance.
This results in a low profit margin, which can affect the financial health of the business. To circumvent this situation and promote a reduction in transport costs, automation in a TMS facilitates users to execute policies that offer immediate freight savings.
This means that, to improve the performance of the operation, it is recommended to use a system developed with a state-of-the-art application architecture. When this happens, the tool is able to receive and process carrier fees in real time, as long as it has an Internet connection.
This is not about one-off reductions, but rather about effective ROI, based on dynamic access to tariffs and costs, in real time. When the manager has several transport operators, it is possible to make more accurate decisions.
In this way, the selection process can establish criteria based on cost, transit time and safety, making the best option for each specific shipment and saving money in the short and long term.

Better customer service
Have you ever stopped to calculate how much it can cost your business to lose a customer? What percentage of your profitability is linked to the contract of a few customers? How would your company be able to maintain financial health if a contract was terminated?
These questions serve to give the manager real clarity about the impact that the relationship with his clients can have on his performance. We are not only talking about finance, but also about its reputation and recognition in the market.
For this reason, the automation of logistics processes provides accurate supplier monitoring, with automatic surveys, adequate insurance and freight accounting built according to your customized specifications.
Thus, by receiving automatic notifications, both you and your customer know exactly how much the freight will cost and when the product will reach its final destination.

Gain in operational efficiency
The service provided by the carriers goes far beyond the simple movement of goods on time. This is an activity considered strategic to meet the demands of manufacturers and their customers.
This means that this outsourcing process is an important partnership that now includes inventory management and replenishment planning. With this, companies will function in an integrated manner while maintaining the management and monitoring of centralized results.

Monitoring of performance indicators
We will hardly find a management system on the market that does not include the monitoring of indicators and reports. This function can be customized to generate reports on the most impactful activities, such as:

. the volume of deliveries made;
. the average delivery time;
. the percentage of errors in order processing; and
. the total after the deadline orders.
The systems provide reliable and accurate data processing and reporting to support decision-making. Information management is increasingly present in companies to help understand how problems can be solved and the impact of bottlenecks on the operation.

Access to data and real-time analyses
When accessing data and reports in real time, your decision-making process is favored with accurate information about patterns and histories.
For example, it is possible to find that 80% of the time, you chose carrier “A” because it had lower costs, but that it delays 20% of deliveries, creating a problem with inefficient customer service for your business.
Allowing the creation of such a negative image of the company just to save on transportation costs can damage its long-term results, making it more difficult to attract new customers and increasing the chances of losing current ones.
Thus, access to valuable data, at your fingertips, with the automation of logistical processes, simplifies the evaluation of the total cost of your decisions in order to avoid future inefficiencies.
Finally, it is essential to highlight how the technological renewal of a company begins as a careful study of its needs and processes. Logistic automation is the solution that can transform the reality of the business; however, it is necessary to dedicate time to plan this renovation.
Did you like our article? Would you like to know more about our solutions? Please contact us and ask your questions!

The VMI Portal is a portal of news and information on systems of collaboration between suppliers and customers, which is growing continuously. The idea is to promote and disseminate the concepts of Supply Chain Management (SCM) and Vendor Managed Inventory (VMI), among other topics.




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