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4 Ways Technology Can Improve Logistics Efficiency

Logistics, like any other industry, is adapting quickly to satisfy the wants and demands of customers. Technology plays a vital role in every realm of logistics- warehousing, route optimisation, digital payments, geofencing to improve logistics efficiency. A rapid transformation has occurred through technological adoption during the post-pandemic period. It necessitated the need for maximum logistics efficiency and improving the distribution system resilience. There was a need for complete automation to mitigate unnecessary expenses and risks involved in the processes. Besides, technological adoption opens great opportunities to enhance customer satisfaction. The precision in predictive analytics and the less human intervention result in high levels of accuracy in all logistics operations.

Significance of Improving Logistics Efficiency  

The digitisation and incorporation of technology in logistics helps shipping businesses to remain competitive and connect between the activities to derive the expected outcomes. When we discard outdated methods that are no longer useful, it paves for absolute enhancement in productivity and helps improve logistics efficiency. When logistics efficiency is improved, it provides excellent opportunities to cut costs down, and businesses can improve overall efficiency.

Suppose, if a business experiences any issues, it gets resolved very quickly that the deliveries will never get disrupted. Again, the result is better customer satisfaction, which further takes business to unprecedented growth. Advanced technologies such as artificial intelligence (AI), Machine Learning (ML) and the Internet of Things (IoT) lets the parties involved to interact and communicate effortlessly. Top of all, logistics artificial intelligence and other technologies ensure timely addressing of the bottlenecks while meeting client needs. 

Let’s unravel some of the most significant ways technological adoption helps logistics and shipping service providers. Here we go!  

1. Milestone-based Tracking  

Tracking in real-time becomes a reality when cargo transport companies rely on automation. Now, with the help of the advanced technologies aforementioned alongside tapping the benefits of data analytics, shipping companies offer dedicated portals where their customers can access tracking based on milestones while the goods are in transit.

It not only does help customers view the transit details but also with the estimated time of arrival (ETA). Both sender and recipient can track shipment status and find a few significant milestones in the journey with the respective dates on which the shipment should reach. Tracking based on milestones offer control on goods transit and gives more transparency in the supply networks, which further help improve logistics efficiency. 

2. Warehouse Operations  

Shipping and logistics services cannot function without a proper place to store finished goods, inbound and outbound logistics facilitating packing and shipping of orders. It is paramount to the success of the physical movement of goods while allowing proper storage of inventory, repacking for eCommerce delivery solutions, in particular.

A warehousing and storage solution serves both businesses and customers while helping to improve logistics efficiency. It should meet the storage requirements of the products based on their nature. A warehouse management software enables easy integration of warehouse operations with other systems for easy information flow and reducing operational costs. Many warehouse management systems optimise utilising the available space efficiently by reconfiguring the layout.   

3. Route Optimisation  

Route optimisation implies the process of finding the most economical route for a vehicle carrying shipment. Even though it seems simple, selecting the shortest distance between origin and destination is often daunting. Here comes the significance of advanced technology and automated routing. The shipping and transportation companies can take advantage of the nexus between logistics and artificial intelligence for route management. 

The complex algorithm presents them with the easiest, shortest and most economical route after considering the pickup and the delivery points. Route optimisation is not only intended for cost savings but also offers time savings. Also, it reduces the excessive reliance on human resources. Suitable for vehicles that have to make multiple halts during the transit of goods, it is easy to incorporate predictive traffic functions in the route optimisation module. The more sophisticated functions provide efficient routes after taking into account the historical information on traffic congestions.  

4. Geofencing Technology  

Essentially a location-based service, the application uses Radio Frequency Identification (RFID) or Global Positioning System (GPS) that the shipping companies receive milestone-based alerts. The rfid technology in logistics helps when a mobile device or RFID tag enters or exits a virtual boundary (geofence) set up based on a geographical location, alerts get sent.

Several touchpoints such as warehouse, company office and so forth are part of the geofence. When a vehicle enters or moves from the marked area, alerts get sent. In essence, rfid logistics tracking helps a shipping company monitor the movement of the fleets precisely. With the help of system integration, it is easy to pass the information in real-time among all persons involved in the goods transit process.   

Final Thoughts  

Technology is a game-changer for the shipping and logistics business. From picking to tracking to delivery, there is no denying that technology plays a crucial role to improve logistics efficiency. It simplifies the entire process involved in shipping and delivery. Further, manually implementing all these complex activities consume much time. There is also the possibility of human error when there are plenty of fleets operating. The adoption of technology and automation of the shipping process plays a vital role in eliminating such discrepancies.  

At Ianis Cargo, we undertake our shipping operations on a fully automated platform, from price calculation to delivery. We use an advanced shipping calculator to arrive at the lowest rates, allow courier comparisons, provide live tracking, electronic proof of delivery and many more to offer complete transparency in the implementation of shipment transportation. Eventually, every such technological adoption helps improve logistics efficiency to the maximum. 

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