In a recently published report by Research and Markets, “the global logistics market attained a value of USD 10115.6 billion in 2022.” The report further states, “Aided by the rapid growth of eCommerce and advancements in supply chain management, the market is projected to further grow at a CAGR of 5.6% between 2023 and 2028 to reach a value of USD 14081.64 billion by 2028.”
Post-pandemic eCommerce has made a great leap and its advancement could be attributed to automation of logistics and supply chain management. Another factor which has propelled the growth of eCommerce is an increase in globalisation of trade. It has led to considerable rise in interdependence among the countries to provide reliable, cost-effective dependable logistics system for exchange of goods.
Logistics processes are encompassed of several activities as warehousing, inventory management, transportation, planning, storage, coordination, integrated flow of information from the origin point to the delivery point and more. The aim of logistics companies or retailers is to ensure, products are delivered to the end-user in the most optimal condition and on time. The cloud-based onsite automated logistics management system has revolutionized the market dynamics and has elevated customer relationship to the next level.
Challenges
Post the pandemic, logistics and transportation functions got exposed to their shortcomings and limitations owing to traditional workflows. It became evident to survive in the new business ecosystem. Now companies need to pace up and brace technology driven logistics and supply chain management system to be the frontrunner. As per a report in Fortune Magazine, nearly 94% of the Fortune 1000 companies were at the mercy of pandemic-induced disruptions in the supply chain management. A few among many reasons which threatened transportation and carrier companies and forced them to opt for consistent and customized transportation management system are listed below.
• Lacking Upstream & Downstream Visibility. With continuous switch from online to offline mode of purchasing, retailers needed to stay in sync with cross platform demand for orders. A lack of upstream and downstream visibility of goods was leading to loss in business as customers immediately felt disconnected and ignored by the retailers.
• Missing Resilient Approach to Demand Variability. Agility to adapt with sudden variability in the demand was missing. It disrupted supply chain, as management was not prepared for any unexpected changes. Resilience in supply chain management helps with demand forecast, planning and preparing a robust supply chain system.
• Sudden Outages. The biggest disadvantage of traditional work culture is dependence on manual support for tracking inventory which is difficult and is never free of mistakes. Without real-time order tracking, it is not easy to trace and track inventory.
• Increase in the Cost of Transportation. With globalisation of trade, economy is majorly dependent on international events and there are noticeable fluctuations in the cost of logistics and transportation functions. Cost is directly proportional to international unrest and any unfavorable political conditions, can make an impact on the shipment rates. With transportation management software comparing of container & shipment rates, cost-effective routing and optimization of supply chain management are achievable.
• Delay in Delivery. There is often long waiting time for delivery of an order due to lack of availability of inventory, fragmented information from warehouse and siloed communication from logistics and transportation fraternities about ETD (expected time of delivery) of parts etc. There are many such instances when businesses face customer’s wrath because of delayed shipment.
TMS Platforms: The Savior
TMS platforms allow silo-free end-to-end communication from the point of origin to the point of delivery of an item. The software can also be tweaked as per the requirement of a business and can be optimized for effective supply chain management, which can compete efficiently in this hybrid business ecosystem.
• Convenience in Managing Multi-Modal Transport Networks. Real-time visibility of the shipment movement helps in planning and executing cutting-edge routing. It foresees upcoming disruptions in the route and shows alerts. Companies essentially rely on airways, waterways, train, and roadways for logistics and transportation functions, with cross-network visibility, it is easy to manage transportation.
• Trace & Track. With the scan-technology, monitoring of products has been simplified. Smart and intelligent integration of other supply chain tools with TMS, provide enhanced supply chain visibility and better tracking and tracing of items. This diminishes manual effort and avoids chances of errors.
• Yard Management. With real-time insight into space and availability of container in the yard, it is simpler to manage overloading and other freight management processes.
• Optimizes Routing. The TMS software offers numerous features that contribute in route planning and optimization, scheduling, finding dynamic, and clean routes and geofences. Smart software can calculate costs and show ways to optimize routes in the most cost-effective way for reaching destination on time.
• Sourcing & Rate of Carriers. TMS maybe only a part of bigger supply chain management system, but brings a cluster of benefits to transportation and carrier companies. It consolidates data related with carrier companies and makes it possible to select and manage carrier contracts. It saves both time and money. It is quite influential in increasing the revenue base.
Introducing Advatix Cloudsuite™ Logistics: Streamline Your Transportation Operations
Advatix Cloudsuite™ Logistics is a robust technology solution designed to optimize your end-to-end transportation. With multi-modal logistics synchronization, real-time tracking, and fleet management features, this product enhances efficiency and visibility.
Key Features:
1. Multi-Modal Optimization. By bringing the benefits of logistics consolidation in-house, this solution offers fast and economical transportation options, enabling businesses to reduce costs and improve operational efficiency.
2. Route Optimization. Leveraging real-time tracking capabilities, the software identifies the shortest and quickest routes for shipments, maximizing return on investment and minimizing transit time.
3. Fleet Management. By controlling and managing your fleet, the software helps prevent disruptions and optimize driver performance. It also facilitates scheduled vehicle maintenance, reducing downtime and enhancing overall fleet efficiency