• Sunday , 20 August 2017

Things no one tell you about Logistics Outsourcing: Rising Technology and Shipper Expectations

A report filed by Cerasis aptly sums up the importance of technology integration with third party logistics services by saying. Many of the emerging technologies are still in the testing phase, but there can be little doubt that they will have significant roles to play in the future. And the future is not very far down the road; it’s just around the corner.

The inclusion of technology and innovations driven by technology are likely to bring about more cost-cutting and customer satisfaction in the long run, rather than non-technology driven innovations. The cost of resources that an organization incurs owing to freight shipping, labour, storage in warehouses and other business processes can experience a significant reduction in cost if processes are automated. Businesses also give themselves the added advantage of faster business outcomes in a shorter turnaround time without compromising the quality of goods and services delivered. While 3PL providers get the higher ROI edge, shippers experience the fruition of their expectations into results, making the relationship they share symbiotic in nature.

Though technology has a lot of benefits to offer, small businesses may still be averse to the benefits of technology, putting them at a comparative disadvantage. The initial cost to set-up the technology acts as a major deterrent for small businesses to invest in it. However, what they need to realize are all the long term benefits and cost-cutting that these technology-fuelled innovations shall bring about to their businesses in the long run. Also, they may benefit from an edge that shall be a result of higher and deep sated customer satisfaction. Not implementing technology that is conducive to their business has given way to a greater level of customer dissatisfaction and given rise to shipper complaints, both of which are harmful to the organization.

The widespread adoption and usefulness of technology is forcing logistics service providers to rethink the transparency present in their business processes, so that shippers can monitor and keep an eye on the movement and delivery of their cargo throughout the freight shipping cycle. By eliminating silos and driving higher transparency across levels, logistics providers get to experience streamlining of their organizational processes and enjoy superior customer satisfaction.

The faster logistics companies adopt technological advancements and the sooner they bring about flexibility in their approach, they shall benefit from being more consumer-centric, which is the call of the times. The discerning and digitally-active customers want to be able to digitally track their freight booking, and this is only possible if a logistics provider offers that particular service. A report by Exchange-Traded Fund supports this by claiming that 32% of retailers and manufactures interviewed in the U.S. expect their 3PL organisation to offer services that are supported by augmented reality.

Amazon has set the bar high with its usage of drone delivery tools and augmented reality fuelled software. Though India is far from achieving such finesse in terms of customer service, the days when this becomes a global phenomenon are not too far.

A promising hope that the days to come for the national logistics industry shall not be as bleak seems to be the adoption of technology such as Transportation Management Systems (TMS), Global Positioning Systems (GPS) and Warehouse Management Systems (WNS). These advancements are consistently fuelled with the latest additions that technology enables, giving organizations the much needed ability to deliver more reliable and faster services in real-time at more feasible prices. Software such as truck booking apps will be beneficial to both logistic providers and shippers, as each party involved will be able to monitor the movement of the cargo at any given place and time, as well as monitor other aspects of freight shipping from anywhere.

Trip In is a modern and smart truck booking app that facilitates shippers with the facility to track the process on an end-to-end basis. Details such as the registration number of the vehicle, the contact details of the pilot, and all the necessary details of the cargo are sent to the shipper along with an estimated cost and necessary addresses.

Additionally the shipper is provided with option of tracking the truck’s en route progress and an estimated time of delivery is updated in real-time as well. Toll charges, and all additional expenditure, if any are digitally intimated to the shipper post the safe delivery of the freight. With Trip In, shippers can be rest assured that from booking till delivery, the entire process of freight shipping shall be transparent as it is processed by a technology-fuelled truck booking app.

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