When it comes to understanding what technology can do for a logistics company, separating fact from fiction is hard. A lot of solutions (like blockchain for instance) overpromise on the benefits a new solution can realistically provide right now or even anytime soon.
But there are real, tangible benefits technology is currently delivering to the shipping industry. It’s understandable, however, that many companies are hesitant to believe what they hear out in the marketplace. Technology investments can come with a steep price in terms of both cost and disruption to a logistics operation.
It sounds overly simplistic to say, but the best approach for companies to understand what’s really possible for them with technology can be to look for the most obvious opportunities. After all, technology may be complex by definition, but the functions it improves don’t have to be as well. Many companies won’t implement technology that would be immediately useful for them because they’re trying to do too much, too fast. For this reason, finding the simple, yet critical, processes in the operation can be the best place to start.
Here are three areas where technology is already helping many logistics companies.
1 – Technology Enables A Better Customer Experience
Customers need to be connected to their freight and having online access to check on delivery status, invoicing, or any other detail of a shipment is an expectation they have today. Technology that enables “self-service” capabilities for your customers to get the information they need (when they want it) creates an enhanced customer experience.
Less can be more when communication is streamlined in this way. For example, shipment coordination between shippers and logistics services providers requires a lot of phone calls. But technology, such as RPA (Robotic Process Automation), digitizes a lot of voice and text communications and reduces the number of calls that are necessary.
2 – Digitization Is a Solution to Having Too Much Paperwork
When shipping information becomes digital, it becomes more accurate and easier to share. Whether it’s through RPA or data feeds using APIs/ EDI technology, digital information benefits both shippers and service providers.
Similarly, there’s a lot of repetition with many back-office and paper-intensive tasks. Technology that’s able to extract data off of paperwork can digitize information and enable faster processing, from invoice payments, to organizing paperwork, or to other crucial functions.
3 – Technology Drives More Sales Opportunities
A big bottleneck for many companies can be providing up-to-date quotes. International shipping is a particularly complex and time-consuming process — especially for freight forwarders. When technology is leveraged to store and manage rates, the accuracy and speed of quoting drastically improves.
Customers will also appreciate the convenience, so when a provider offers the ability to request quotes and check pricing online, bookings will go up.
Looking at these three areas where technology can help a logistics company, it’s easy to see how each is related. The value of providing better service to customers is the result of data moving more efficiently throughout a supply chain and important information increasing in accuracy.
For most logistics companies, doing too much with technology prevents them from taking advantage of what automation can already do for them. If you’re searching for a place to start, try focusing on the simpler tasks.
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