The creation of a product is the first step. Then it waits in the warehouse for delivery to the end users. Not every company has the ability to maintain its own freight fleet with an appropriate staff. That is where transport and logistics services are indispensable, and this is the reason for their increased popularity and the demand for logistics companies providing cargo transportation services.
Transport logistics is a bridge uniting the participants in the process of cargo transportation through technical, technological and economic criteria. The specific logistics methods allow selection of the optimal type of vehicle (to avoid overloading and other problems) and calculation and determination of a rational and convenient route of travel (which saves time and customer money). In this way, logistics is a whole science with an accurate mechanism of work preventing irrational and inefficient spending of company resources.
Despite the fact in recent times, modern logistics concepts have been successfully adapted to the strategic and operational management of main business areas, there are numerous, severe difficulties logistics companies have to overcome in the context of global trends and separate national economy models. Fortunately, there is an effective solution, but first things first.
Contemporary Problems Of The Logistics Companies
In general, we can identify the following global problems and the difficulties modern logistics companies engaged in transport and expedition activities face:
- lack of information support for transport;
- lack of the transportation process optimization;
- difficulties in cargo and transport insurance;
- difficulties in the creation of traffic routes (both international transportation and distribution within a city);
- lack of information about software products in the field of transport logistics.
Let’s consider specifics and tendencies of these problem areas in more detail.
Lack of information support for transport
In spite of the “informatization” and “computerization” of modern life, the flow of information accompanying the transportation process is far from perfect. This includes connecting with a driver (when he is in another country or at a border crossing), monitoring of the cargo during the transportation, and monitoring of the state of the vehicle, its location, etc.
There are regular cases of loss of communication that negatively affect the coordination of the transportation process, especially when urgent transmission or updating of information for the driver is required.
Lack of the transportation process optimization
In general, low automation and optimization create the problem of inefficient use of company resources, both technical and human, leading to a great number of other shortcomings in the logistics system.
Often, a company sends off separate shipments of goods, not completely filling the transport. Thus, the rolling stock is not effectively used and the delivery time is prolonged. In parallel, the assembly of groupage cargo not only increases the efficiency and profitability of the business for the logistics company, but also reduces the cost for customers.
Another pitfall is an insufficiently accurate route planning and the absence of a backup option. Consequently, a client faces increased terms of transportation and overestimated costs of services and as a result, significantly reduces the competitiveness of logistics companies.
For solving these crucial issues, it is necessary to use innovative software systems designed for optimizing business processes.
Difficulties in cargo and transport insurance
Now more consignors and consignees are trying to insure their transportation, and according to practitioners, insurance of cargo prevails over insurance of the vehicle with the load. In most cases, insurance is calculated as a percentage of the value of the cargo (usually 0,15−0,25%), and when an accident occurs, an insurance payment is made to the extent the cargo is damaged. Typically, the cost of damage is not fully compensated. In any case, the insurer and the insured are looking for the most acceptable combination of insurance cost and amount of insurance payments, which is stipulated in a contract.
To avoid unfair proceedings and protect themselves and their authority, companies can refer to innovative blockchain solutions, particularly smart contracts responsible for strict compliance with the contract.
Difficulties in the creation of traffic routes
Since the early 1920's, transport workers have used fairly effective methods to compile optimal routes for traffic. This is the transport task: find the shortest connecting network or the shortest path between two points of the territory, and create distributing routes.
Unfortunately, after the transition to market relations, some randomness in the formation of the transportation process has appeared, and traditional methods of optimizing the transport process have been forgotten.
At the same time, an increasing number of companies facing problems of constructing optimal traffic routes are ready to invest considerable money in software to automate the process of finding the most rational route. But, good old Excel is not enough to quickly solve this transport problem. Logistics companies are looking for a tool allowing them to obtain the optimal route result, forecast possible results in case of changes, and perform other operations relating to the effective creation of traffic routes.
Lack of information about software products
The software market is growing exponentially. Innovative and always improving programs allow us to simplify all the spheres of our lives.
Speaking about the logistics field, the situation is somewhat different. There is no abundance of logistics software on the market, the reviews are very ambivalent, and there is no objective analysis. Assuming the considerable cost of these programs, it is not surprising potential buyers are lost and gradually defer the idea of purchasing “until better times."
IT companies must improve existing software packages and “explain” to their potential customers the advantages and features of their programs in relation to others. When consumers can see the difference, they are able to make the right choice, and it is easier for manufacturers to find and identify their niche in the logistics software market.
Taking into account these problems, it may appear the logistics sphere is in decline. However, this is an incorrect conclusion. Logistics science is evolving, and it is important to take into account world practice and developments to move the whole industry to a new, qualitative level. First, this concerns the automation and optimization of the logistics companies business processes. In this digital era, you can hardly find a more effective and progressive solution than development of a special logistics software based on innovative technologies and approaches. There is someone who can help you benefit from contemporary logistics web services and software solutions.
Solar Digital Has Solutions For The Logistics Industry
Solar Digital is a full-cycle web and mobile development company with a focus on the details specific to the individual client’s business. All specialists in Solar Digital have a deep understanding of the transportation business allowing them to provide logistics companies with high results. The specialization of the company is implementation of complex software solutions for customers within different industries.
Since the logistics field has global problems today, Solar Digital knows how to solve them by developing the next tools:
1. Asset Tracking System
Asset tracking works by performing three main functions:
- documenting asset attributes.
- location identification.
- tracking movement.
Additionally, there are other activities as scheduling maintenance events, performing maintenance events, depreciation calculations, and many more. The act of performing physical inventory on the equipment and items is another input to an asset tracking system allowing it to accurately manage shared resources.
Using this solution, logistics companies can reduce regular cases of loss of communication that negatively affect the coordination of the transportation process, poor connections with a driver (when he is in another country or at a border crossing), monitor cargo during transportation, and monitor of the state of the vehicle, its location, and other problems.
2. Transport Planning System
The business of getting goods from A to B within budget and on time involves a staggering level of complexity. Drivers juggle numerous depots, vehicles, and customers, each with unique constraints. Yet, the demand for superior customer service remains the same in good times and bad. You are able to increase the operational efficiency and resource utilization via the special Transport Planning System. With its help, you can clearly forecast demand and shipment volumes accurately to fine-tune transportation planning. You can enhance freight and logistics management to gain real-time visibility in global transportation across all transportation modes and industries. Moreover, the logistics companies are able to avoid unpleasant situations with sufficiently accurate route planning and help clients get their shipments in time without the need to pay overestimated costs for services.
3. Accident Help Applications
Sadly, thousands of accidents happen all over the world everyday,. However, when thee accident involves company drivers, the whole process of chasing repairs, filing insurance paperwork and getting the driver back on the road can be a prolonged agong. Modern accident help applications can take the stress out for the company and save managers time and costs. The accident and claim management module of these systems handle the entire process from gathering repair quotes and managing insurance claims, to handling cars and getting the vehicle back on the road again. In addition, utilizing the GPS technology, applications make it easy for the driver to locate and contact the closest police department, ambulance service, and rental car company.
4. Digital Logistics Platforms
Shippers can usually implement a homegrown mobile order management system. However, it can create tremendous challenges for transportation service providers to procure, install and maintain their own hardware and software for every customer in addition to training the drivers to use the system. Digital Logistics Platforms solutions currently utilized by a number of carriers are more viable. Logistics goes beyond an individualized digital supply chain for each company to a more global compatibility and network connectivity across the supply chain. In Solar Digital, we strive to create solutions for e-commerce platforms, CRM, ERP platforms and mobile platforms to deliver higher quality service. Our team delivers solutions combined with our wide expertise in logistics to make sure your technology is never obsolete.
5. Warehouse Management System
Warehouse Management System (WMS) optimizes the warehousing operations. Previously, these systems have been a part of much bigger and more complex distribution functions.
Warehouse management lets an organization improve its competitive advantage by minimizing labor expenses, enhancing customer service, improving inventory accuracy, and increasing flexibility and responsiveness. WMS allows companies to manage inventory in real time with data existing as the latest order, shipment, or receipt and movement. With successful implementation of a Warehouse management system, your placement and removal cycle times are reduced, and inventory accuracy is improved.
When going global, companies of all sizes face a number of logistic challenges including effectively planning, controlling, and managing the movement and storage of goods and services as they extend over international boundaries from raw-material suppliers to end customers. However, no one is immune to problems and mistakes, and we need to do everything to avoid them. The logistics field is still developing and growing, and Solar Digital is a reliable partner for those who strive to conquer these challenges!