Logistics Software Solution: Overcoming Supply Chain and Logistics Challenges With Automation


Logistics Software Solution: Overcoming Supply Chain and Logistics Challenges With Automation

The global eCommerce market is projected to reach USD 1901.97 billion by 2030. Further, the global parcel volume is expected to reach 256 billion by 2027, as per Pitney Bowes Inc. This would mean that brands need to move products quicker and economically regardless of business type, scale and use cases. But, it is difficult to optimally sync complex processes like transportation, warehousing, logistics and more. 

As a result, businesses and logistics/supply chain stakeholders must learn to work more efficiently by utilizing all of the tools at their disposal to enhance the effectiveness of the supply chain.

Many businesses are increasingly using technology solutions to simplify processes and unlock efficiencies. Consequently, the logistics software market is expected to reach a market valuation of USD17.76 Billion with a CAGR of 8.31% by the end of 2030. However, businesses are increasingly looking for ways to manage their operations in an integrated manner and to unlock higher levels of transparency.

Below, we discuss what a logistics software solution is, and how it can help businesses do so in an optimized manner. We also share how these solutions can transform the supply chain workflow and overcome logistics management challenges. 

What is Logistics Management?

Logistics management encompasses multiple procedures which guarantee the seamless transfer of goods, freight, parcels, raw materials, finished inventory, and packages from their point of origin to their final recipients. 

These processes can be either automated or manual, depending upon the digital maturity of the brand. With the help of technologies like Artificial Intelligence, Machine Learning, Predictive Intelligence, and the Internet of Things (IoT), modern and effective logistics software solutions empower businesses to find new revenue streams, increase delivery profitability, and produce wonderful customer experiences. 

The Significance of Logistics Management

The prime responsibility of any manufacturer, retailer, or eCommerce company is to deliver the right product in the right quantity at the right time. This is made possible with efficient logistics management. Once a customer places an order, logistics comes into action. Logistics is responsible for everything from picking up the product from a warehouse/manufacturing unit to the final delivery. If managed correctly, it can greatly contribute to business profitability and customer satisfaction.

Logistics management ensures higher productivity by identifying cost-cutting opportunities and establishing optimized processes. Businesses can reduce operational costs and miles traveled and maximize their trip efficiency.

What are the Different Types of Logistics

Inbound Logistics

The movement of goods from suppliers to production is referred to as inbound logistics. This includes storing and moving various goods and data from suppliers through warehouses and then to manufacturing facilities for further processing and production.

Raw materials are the types of goods or items that are shipped through this logistics flow. Some of them might be manufacturing equipment, consumable fuel items, or various spare parts and production input inputs. The cycle is more effective and integrative with intelligent inbound logistics management.

Outbound Logistics

Outbound logistics refers to transporting goods or finished goods from manufacturing facilities to the following supply chain operation. Then, these goods are transferred from the warehouse to the point of consumption. As a result, order fulfillment is another name for the outbound logistics process.

The products moving through this process flow are all intended for end users and are shipped as part of outbound logistics. The manufacturer receives the raw materials through inbound logistics, and the finished product is then shipped to the end users via outbound logistics.

Reverse Logistics

Reverse logistics, as the name implies, is the movement of goods or products from end users to the supply chain. Reverse logistics is required when products need to be replaced or returned for refurbishing, repairing, exchanging, discarding, or recycling. Reverse logistics is essentially after-sale processing that is primarily used by the automotive and electronics sectors, though it is also used for products related to all other industries.

Why Is Logistics Management Important?

Logistics management is important because it helps businesses to ensure that goods and services are delivered to the right place, at the right time, and in the right condition. It helps in optimizing the supply chain, reducing costs, improving customer service, and enhancing overall business performance. 

Effective logistics management also plays a crucial role in meeting customer demands, gaining a competitive advantage, and achieving business objectives. Efficient management of activities such as transportation, warehousing, inventory management, order processing, and packaging helps businesses to optimize their supply chain, which leads to several benefits.

Some of the major benefits of logistics management are: 

  • Cost reduction
  • Improved customer experience
  • Competitive advantage
  • Less dependence on manual elements
  • Reduction in lead time

7 Common Logistics Management Challenges

Inefficient Logistics Planning

Planning is always the first step in completing any task, and logistic operations are no exception. It contains a variety of well-considered aspects, factors, and parameters. Any logistics plan, however, would be lacking without considering unforeseen circumstances. To stay efficient and effective, smart supply chain planning solutions and logistics software automatically work out the best transportation strategies according to the specified parameters indicated. 

Moreover, an advanced logistics software solution can decrease transportation costs, minimize stops to warrant speed and quality of delivery, and shorten lead time.

High Transportation Costs

Increasing transportation costs make up a significant portion of all logistics costs. This is one of the biggest challenges faced by the logistics sector. The increase in fuel prices, which makes up most of the increase in transportation costs, is a major challenge for logistics companies worldwide. 

Customers are effectively charged an additional surcharge due to rising fuel prices, impacting revenue and earnings when fuel prices fall. Costs rise due to idling, empty miles, and inefficient routing, ultimately resulting in losses for the company.

Inability to Track Consignments in Real-time

The rate of customer churn is increased by the lack of real-time transportation visibility. This is because customers demand end-to-end delivery transparency and will only stay engaged with companies that keep their promise to deliver accurate information along with on-time orders. Without real-time visibility and control, planning and supply chain process monitoring would become inaccurate, resulting in resource waste and revenue loss.

Lack of real-time visibility into delivery activities causes inefficiencies across the board, keeping businesses from keeping up with their rivals. Logistics software solutions with real-time transportation visibility capabilities are gaining momentum at a rapid pace.

Delivery Delays

In the delivery sector, delays and unsuccessful deliveries are unavoidable. For many years, logistics services have struggled to address delivery delays, and as the demand for quicker deliveries rises, the problem is only getting worse. 

Delays and failed deliveries can occur for a variety of reasons, including incorrect address verification, unanticipated delivery incidents, unpredictable weather, and traffic conditions. Delays and failed deliveries can push up operating costs and make it difficult for the sector to turn a profit.

Poor Operational Visibility

The logistics industry has been stifled by poor supply chain visibility. Poor operational visibility has a negative impact on a company’s revenue, efficiency, productivity, and customer experience. One of the main causes of poor visibility is the use of traditional methods for carrying out operations. 

Using a logistics software solution that automates and integrates all logistics systems like TMS, VMS, and OMS is crucial to ensure visibility.

High Logistics Costs

Around  55% of customers abandon their shopping carts when faced with an additional shipping fee. High delivery costs cause a rise in the number of shopping cart abandonments. Last-mile delivery can be expensive for both the client and the business. 

Additionally, shipping and logistics companies must budget for difficult routes, unsuccessful deliveries, extra stops along the delivery route, driver wages, and fleet maintenance. Costs are also doubled if a first delivery attempt fails and needs to be rescheduled.

Inefficient Route Planning and Optimization

The uncertain contingencies that could arise during the logistics and delivery procedure make route planning difficult. Dynamic parameters like bad weather, unexpected congestion, and more can greatly hamper the route optimization process in a manual setup. It is near-impossible to predict and plan delivery routes with a high degree of accuracy in such circumstances. 

Poor route planning can result in delivery delays, increased idle time, wasted fuel, and decreased driver productivity. 

The above points show the need for and utility of deploying an intelligent logistics software solution to ensure an optimized and automated approach to logistics across all business use cases.

How to Choose the Right Logistics Software Solution For Your Business

Seamless Integration With Existing ERP/WMS/OMS

Managing all aspects of logistics, from order receipt to final courier dispatch, may be difficult. But this is precisely the situation where using logistics software solutions is useful. The dispatcher must keep track of data, keep an eye on current information, and guarantee a smooth delivery dispatch on all fronts. 

Having a system that seamlessly integrates every function across the supply chain with the existing ERP is crucial so that organizations can manage every aspect of the business and streamline the process.  

Automated Task Allocation

Logistics solutions are required to handle high-volume online orders. The dispatcher’s need for manual coordination is minimized because the software handles everything for them. This covers the taking of the order, the planning, the processing, the storage, and the shipping and delivery.

Automatic scheduling, real-time optimization, tracking, automatic bill generation, managed order status, and multiple payment gateways are some of the features that simplify order management for businesses. One must choose delivery management software with all these features to make order management seamless and effective.

Automated Route Planning and Optimization

The transportation of finished goods from warehouses to customers can be planned, carried out, and optimized with the help of automated route planning and logistics management software optimization capabilities. 

It aids fleet managers in determining the best delivery routes, streamlining driver assignments, and accelerating pickup and delivery processes, all of which help to cut costs. 

Real-Time Tracking

For the logistics sector, immediate and real-time visibility across all supply chain channels has changed the game. Customers value instant communication regarding any potential shipping details and real-time tracking of their ordered goods. 

To ensure that the dispatcher and agents can react quickly to last-minute changes, it is essential to gain complete visibility across the supply chain with dynamic tracking via a logistics software solution. 

Real-Time Delivery Alerts

The logistics software solutions must support communication between managers and delivery drivers so that businesses can streamline dispatch operations. This includes a dashboard that lets users and customers track orders in real-time and get delivery alerts about their order status, and delivery challenges like congestion and weather.

Communication and Collaboration

Supply chain communication and collaboration feature in a logistics software solution provides unique opportunities to make the supply chain more effective. This allows tracking real-time data of the supplier as well as the distributor performance and aids businesses to clearly understand the patterns so that necessary adjustments can be made. 

Enhanced collaboration between the involved parties in the supply chain is the only viable solution for ensuring growth. Without an effective collaboration feature, it becomes challenging to improve the entire supply chain dynamics consistently.

Achieve Operational Excellence and Logistics Efficiency With Shipsy’s Logistics Software

Shipsy’s AI-powered logistics software optimizes end-to-end logistics management and can be easily integrated. Cross-border and local logistics are seamlessly connected, and its mobility suite automates operations and ensures smart 3PL management. The user-friendly features offer total visibility into all first, middle, and last-mile operations. This helps unlock operational efficiency with real-time analytics to allow intelligent decision-making.

Shipsy’s logistics software platform fulfills customer demands, delivers excellent operations, and brings logistics efficiency. 

  • A 23% reduction in last-mile delivery costs.
  • 14% increase in deliveries per driver.
  • 77% reduction in steps for the delivery process.
  • 18% increase in delivery NPS.
  • Decrease in ETA SLA breach by 37%.
  • Onsists Increase in mid-mile vehicle utilization by 32%.

Request a customized demo to find out how Shipsy’s smart offerings can help you empower customers, boost profitability, and unlock better margins.


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