How Technology can improve your Supply Chain | Zmodal

Summary

The logistics industry has recently embraced technology, driving significant improvements in supply chain management. Innovations such as automated shipment tracking, Transportation Management Systems (TMS), and data analytics allow businesses to enhance efficiency, reduce costs, and streamline operations. Despite some lag, digital platforms for booking loads, payment processing, and analytics are increasingly being adopted to optimize freight management. These technologies offer easy access to shipment data, enable better decision-making, and save valuable time, benefiting shippers of all sizes. Embracing these tools is crucial for staying competitive in the evolving logistics landscape.

Takeaways

• 😀 Technology adoption in the logistics industry has significantly increased in recent years, leading to major improvements in supply chain management.
• 📦 Shipment tracking has evolved with low-cost GPS devices, allowing for real-time location updates, delivery time tracking, and potential delay notifications.
• ⏱ Many shippers still rely on phone calls for tracking updates, leading to inefficiencies. Automated tracking systems and online portals can streamline this process.
• 💻 Transportation Management Systems (TMS) offer a single platform for organizing inventory, managing shipments, and providing document management, yet fewer than 30% of shippers are utilizing TMS.
• 📊 Data analytics has advanced, enabling even small shippers to leverage data-driven decision-making for cost-effective and reliable service selection.
• 🔄 Combining shipment data with inventory tracking can lead to supply chain and cost improvements by identifying optimal service offerings.
• 📲 Digital logistics platforms provide easier load booking and shipment tracking, reducing manual tasks and allowing shippers to focus on optimizing their supply chains.
• 💵 Digital payments and invoice management tools integrated into TMS systems streamline accounts payable, saving time, especially for small businesses.
• 🕒 Automating basic tasks like shipment booking, tracking, and payments frees up time for shippers to focus on strategic supply chain management.
• 🔧 Technologies like automated tracking, TMS, and digital platforms can immediately improve supply chain efficiency and lead to cost reductions.

Q & A

Why has technology adoption in the logistics industry been slow in the past?

The logistics industry has traditionally been slow to adopt technology due to factors like the complexity of operations, a reliance on legacy systems, and a general reluctance to change in a field that deals with many manual processes.

How has shipment tracking improved over recent years?

Shipment tracking has significantly improved with the availability of low-cost GPS devices, allowing shippers to easily track the location of their freight, as well as get real-time updates on delivery times and delays.

Why do many shippers still rely on phone calls for tracking updates, and how can this be improved?

Many shippers still rely on phone calls because they are used to older methods of communication. This can be improved by implementing automated tracking alert systems and online portals that allow shippers to track shipments without needing to call their carriers.

What is a Transportation Management System (TMS), and why is it beneficial?

A Transportation Management System (TMS) helps manage and coordinate freight movement, inventory, and shipping tasks. It consolidates these processes into one platform, improving efficiency by reducing reliance on spreadsheets, emails, and decentralized documents.

What percentage of shippers currently use TMS systems, and what impact does this have?

Less than 30% of shippers use TMS systems. This leads to inefficiencies, such as fragmented inventory management, communication issues, and errors due to relying on manual processes.

How can data analytics help logistics companies improve their operations?

Data analytics allows companies to analyze shipment patterns, lane selections, and inventory levels, offering valuable insights into cost-effective and reliable service providers. This data-driven approach helps optimize supply chain performance.

What are the benefits of digital platforms in logistics?

Digital platforms streamline booking, provide real-time shipment tracking, and offer comprehensive analytics. This reduces time spent on manual tasks and enables shippers to focus on strategic optimization of their supply chain.

Why do many shippers still book loads manually, and how can this be improved?

Many shippers continue to book loads manually due to traditional habits or lack of digital tools. This process can be improved by adopting modern digital platforms that automate booking and provide additional insights to optimize logistics operations.

How can digital payment systems improve accounting in logistics?

Digital payment systems integrated into logistics platforms simplify the tracking and management of supply chain expenses, making payment processing faster and reducing the time spent on accounts payable, especially for small businesses.

What does the future of logistics technology adoption look like?

The future of logistics technology adoption will likely involve widespread use of digital platforms, improved data analytics, and integrated systems that streamline everything from shipment tracking to payments, further driving efficiency and cost savings in the industry.