Debunking 5 Multimodal Logistics Myths

The sky-rocketing eCommerce, rapidly rising cross-border commerce, and digitally empowered consumers are changing the face of global logistics transportation. What used to be an inland activity has now become cosmopolitan, with more than 2.14 billion people shopping online, and 52% of them buy goods from international websites as well as local ones. 

While fuel costs, freight costs, and delivery costs are rising, 62% of customers expect their deliveries to be free and to reach them within three business days. Also, the multiple delivery types, and demand for White Glove deliveries, for which customers are willing to pay a price premium of 13-18%, are clearly calling for a massive makeover for the way goods move all over the globe. 

This is where multimodal logistics emerges as a bankable option to leverage multiple modes of transportation for orchestrating highly efficient, flexible, and scalable deliveries. Stats suggest that multimodal shipping combats transportation costs by 20% and improves transportation efficiency by 30%. Yet, the supply chain professionals hinder themselves from embracing the model because of the myths surrounding multimodal transportation management.

Here, we dissect five such myths to help the supply chain and logistics stakeholders make better and more strategic decisions.

Top 5 Multimodal Logistics Myths That Should Hit the Road

Myth #1 – Multimodal Supply Chains Are Less Efficient

Logistics is already a complex puzzle with multiple moving parts, and adding more such disparately moving parts is only going to add more complexities, right?

While the answer might seem to be yes at first glance, having integrated management platforms for smart workflow automation, stakeholder management, consolidated communication, and real-time visibility can change the picture. 

While multimodal logistics will have more modes of transportation, with 360-degree visibility into the shipment movement, predictive alerts regarding delays, and automated alerts for leg-to-leg movements ensure a firm grip over the entire supply chain. 

Smart logistics automation platforms help businesses orchestrate not only highly efficient transportation but also facilitate exhaustive optimization based on multiple custom parameters. 

Myth #2 – Multimodal Transportation Means Higher Costs

Logistics costs are a multi-variable function with many hidden contributors. That’s why despite being the smallest in terms of miles traveled, the Last Mile continues to be the most expensive mile for businesses. 

Hence, multimodal transportation is not going to eat away at the resources just because of their disparate nature. But the way the multiple modes of transportation are managed, monitored, tracked, assigned, and controlled, is definitely going to have a decisive impact on the operational costs.

Some brilliant ways to keep costs down in multimodal logistics include – multiple logistics partners, real-time asset monitoring, and AI-based carrier selection that empowers businesses to choose from hundreds of custom optimization parameters to choose just a vehicle.

Myth #3 – It’s Impossible to Have Exact Delivery ETAs in Multimodal Logistics

While multimodal can mean multiple service providers, multiple vehicles, and multiple modes of transportation, it doesn’t mean that businesses cannot set ETAs or deliver across the delivery SLAs. 

Smart multimodal automation platforms come with in-built AI routines to automate task allocation, asset line-up, documentation, customs navigation, billings, and communication. So, once an end customer has placed an order that is set for delivery on the 4th day, all the processes are carried out accordingly and optimized to ensure delivery SLAs are not breached. 

Further, in the case of international shipments, the automated system sends predictive alerts for delays in transit, handling, sorting, delivery, etc., and shoots automated dynamic SLAs to all the stakeholders for accurate follow-ups. 

Myth #4 – Multimodal Means Less Transparency

This is one of the most prevalent myths around multimodal logistics, which has no stronghold, especially if a business has a smart logistics management platform in place. Automated logistics and transportation management platforms offer advanced and highly secure document management, transaction management, invoice/billings/claims/RFQs management, and much more.

So, every asset being billed or every person getting compensation gets recorded, and every shipment hand-off among every transport mode gets executed as per the system-suggested routines. 

With end-to-end management of shipment movement, transactions, assets, etc., with smart logistics automation, there is no room left for error.

Myth #5 – Multimodal Is the Slowest Form of Transportation

Multimodal involves trains, ships, airplanes, trucks, boats, and even two-wheelers, depending on the industry, type of goods, amount of goods, delivery location, and much more. While this might seem that trains are a slow form of transportation, dedicated corridors for logistical excellence, right trip planning, and AI-based optimization undoubtedly make a strong counter-argument. 

Railway networks have fewer disruptions along the way, have easier navigation, and serve landlocked and hinterland locations as well. Further, rail freight is cheaper than air freight, faster than ocean freight, and consumes 6x lesser energy as compared to road freight.

Multimodal Logistics: Automation Paves the Road to Success

With proper automation integration, businesses can ensure rapid operations across multiple modes of transport and amplify their profits. They can make hand-offs highly efficient and reduce the man hours significantly. 

AI-powered logistics management and orchestration platforms like Shipsy can reduce freight costs and order-to-ship time by 12%, increase customer satisfaction by 64% and shrink ETA SLA breaches by 37%. 

So, get started with smart logistics management for highly optimized operations management and send the multimodal logistics management woes on a one-way trip to the Neverland!