Logistics deal with everything related to movement and storage of goods, freight management specializes in planning, tracking, and controlling
Simply worded, the one point objective and agenda of any Freight and Logistics Management system is “the designated goods at the right place at the right time at the right price”. These two terms are complementary to each other; while Logistics may deal with everything related to movement and storage of goods, freight management specializes in planning, tracking, and controlling the transportation of goods.
While the Logistics part has its own challenges, one of the main challenges for any Freight Management system is communication. This challenge has become a common hurdle as the two systems are complementary in meeting the business objective. Whether the organizations grapple with these systems deal with 2PL or 3PL or 4PL type of logistics and no matter what types of solutions adopted, the challenge of communication has always been significant and sometimes formidable.
The aspect of communication can unfold into multiple challenges that can bring headaches to any transportation organization. The challenges related to communication make it a far too complicated story considering multiple types of goods and multiple modes of transportation; to keep the discussion relatively simple, this article focuses particularly on the road transportation and shipment related challenges.
List of Challenges
The Communication challenge in the case of Freight Management arises because of the need to keep track of many aspects throughout the process of transportation.
The Challenge of “Paper” Work: Depending on the goods in the consignments and the routes to be covered, a slew of paperwork may require. Certifications of compliance, pro forma invoices, dispatch notes, clearances, permits, and many such others may have to move along with the consignments. Not just the goods but the papers have to be right for the designated goods!
Wrong papers could cause many problems in transportation, misplaced consignments, delayed shipments, held-up drivers-vehicles, and legal issues just to quote a few. Ensuring the right paperwork is important, as record-keeping is one major challenge for the Freight management industry, no matter what kind of logistics is involved. Ensuring the right details are carried by every driver is important as also doing so in minimal time.
While the “paperwork” is important, the question that should be asked “is the paper important?” In this modern age when the world is moving rapidly towards the concept of Industry 4.0, papers may simply turn out to be just the environmental problems!
In another argument, it can be said that from the lean point of view, while efforts spent on providing details about goods and the details about the sender, transporter, and receiver of goods is important, all other efforts could be treated as process waste. But then the challenge is how to ensure providing the right details about the goods, the sender, and the recipient?
The Challenge of Scheduling and Tracking Trips: Optimizing freight loads and trips is an important aspect of Freight management. Making efforts to keep the costs and efforts as optimal as possible is necessary to achieve minimum time and competitive billing to the customers.
Trip Scheduling is about lining up transportation activities based on the completed and future trips to be made based on the plan. Scheduling the trips is important for ensuring optimal costs and minimum transportation time. Often shipment of goods is done in consignments that may combine multiple destinations and modes. It is thus also necessary to communicate the schedule so that logistics planners are allowed to plan the shipments from the starting point to the destinations.
While it is important to schedule trips it also becomes important to track the trips and more importantly keep the status information up-to-date. Tracking allows to not only keep a track of the trips and consignments in them but also offers the ability to provide timely information to the customers.
Route tracking is one of the essential steps in Route optimization which ensures that the vehicles travel through to the destination by the usage of a combination of rules concerning the cost of transportation as well as time taken to find the optimal best for these two. Traffic condition information may be made available for the planner as well as the driver in order to optimize the time and cost.
Planning, scheduling, and tracking are important aspects to ensure actions taken for deviations and contingencies are initiated in time. With the increasing vehicles worldwide, it’s not only important to track vehicles but also to do so in near real-time. The use of technologies like GPS becomes important in these aspects.
Read More About Freight Management Challenges.
IoT based fleet management solutions allow a fleet operator to keep an eagle eye view on its trucks’ fleet. By using geofencing techniques and advanced telematics, he/she can at all times confirm the location of the trucks and make sure that the...
IoT based fleet management solutions allow a fleet operator to keep an eagle eye view on its trucks’ fleet. By using geofencing techniques and advanced telematics, he/she can at all times confirm the location of the trucks and make sure that the cargo being shipped in them is safe at all times.
By using IoT infused fleet management solutions a fleet operator can properly manage its drayage operations and utilize the capabilities of its fleet in an optimum manner. It helps fleet supervisors to thwart common challenges that they really face.
Fleet managers face several challenges in terms of high fuel wastage, traffic congestion, truck maintenance, and unfair payments while also ensuring the safety of the drivers. An IoT fleet management solution can help a fleet manager to improve the fuel efficiency of its trucks by 6%. This roughly amounts to an annual fuel savings of worth $15 million!
The logistics industry is highly competitive and suffers from its share of challenges. The popularity of eCommerce and high customer demand have compelled logistics companies to seek effective means of management. According to a leading survey...
The logistics industry is highly competitive and suffers from its share of challenges. The popularity of eCommerce and high customer demand have compelled logistics companies to seek effective means of management.
According to a leading survey, one of the biggest challenges facing logistics is on-time delivery. Companies also find it difficult to satisfy the customer demand for transparency about every step of the delivery process. On top of that, communication with drivers, suppliers and customers also remain a top challenge. Lack of collaboration and proper ways of inventory management also worries businesses in logistics.
Fortunately, technology has emerged to help logistics companies meet their challenges. By using logistics management app and automation, you can now cut down delivery times, improve communication and manage inventory in an optimum way.
Today, we will discuss the features of logistics management solutions and show you how they can solve your pain points, we will also have a glimpse over the benefits of Logistic Management app for logistics management and industry.
But first, let's take a look at the common logistic app solutions you can opt for.
Types of Logistics and Transportation Apps Solutions
You can choose to go for a number of logistics management app solutions for your business. Here are some of the most common ones -
• Apps to manage the fleet:
This app for logistics management handles all data associated with fleet management. You can empower your drivers with the app and manage your fleet with full visibility into your operations. It serves as an end-to-end mobile solution that reduces errors and helps you make optimum use of your fleet. You may also be able to communicate with your fleet using fleet management apps.
• Apps for tracking:
Tracking apps let you know the real-time location of your vehicle and drivers. You can also access the delivery routes of your trucks and the drop-off locations of goods. This enables you to assign jobs easily and effectively based on distance and time. A tracking app uses GPS and features like Google Maps to provide real-time updates.
On-demand logistics apps help you meet the increased demand of customers. Users can use the app to hire trucks for transportation just like you book an Uber. Everything is done through the app cutting down costs and human intervention. You can also receive payments through the app and communicate with the client.
Apps for warehouses:
Apps for warehouses are also a part of the logistics management system. You can manage and keep track of goods stored in the warehouse using the app. It also lets you manage the movement of goods and helps you to stay on top of your operations. Apps for warehouses increase the efficiency of your warehousing activities and reduces waste.
Read more on Trucking and Logistics App Development
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