Logistics
Business

Logistics and transportation industry is notorious for being extremely immune to changes: if a supply chain or individual warehouse works, there is no need to intrude in the processes. However, a growing demand on logistics services worldwide forces logistics businesses to change. By 2028, the global logistics contract market is expected to be worth $15.79 trillion, which means logistics providers have no choice but to adapt and keep up with such a fast-paced world.

Global Logistics Market is Set to Increase by the End of 2023 by 4% and only 3% by 2024

In fact, 76.4% of companies already report that industry disruptions cause a serious loss of productivity, so it's time to take action and optimize your processes to meet the present-day industry challenges. To help you out with adjusting your business, we’ll describe how to improve logistics operations with 7 solutions you can adopt today.

Best ways to improve logistics operations

These 7 strategies of how to improve your logistics operations will help you make your business survive in a fierce competition and grab new opportunities as you cope with your productivity challenges. Let’s dive in without any further ado!

Ensure visibility across the supply chain

The logistics industry landscape keeps changing at a disruptive pace: same-day delivery is going to grow by 15% in the next 10 years, outcomes of the COVID-19 pandemic, and russian invasion of Ukraine are the main factors that change global supply chains that have been working stably for decades. Under these circumstances, many companies lose a grip of their international operations as they can’t access information about the shipments on the other end of the supply chain. A lack of transparency and visibility throughout the entire supply chain results in miscommunication, delivery delays, and growing expenses.

Actually, 55% of logistics businesses consider supply chain visibility as their priority. To cope with this challenge, logistics companies implement advanced tracking tools such as Radio Frequency Identification (RFID) tags, connected sensors, and various software applications to monitor shipment processes in real time and take immediate action to address any unexpected bottlenecks. Such solutions enable logistics providers to make weighted decisions and spend their time/money in a more efficient way.

More Than Half of Manufacturing Companies Listed Increasing Visibility in Manufacturing and the Supply Chain a Business Priority

For example, one American logistics company, the Twincore client, experienced serious costs problems because of poor shipment tracking. That’s why our team has developed an order management system with a robust analytics tool. This tech solution enables the client to easily track its orders throughout the entire delivery route and identify what operations can be improved to cut costs.

Implement risk management strategy

It’s hard to argue that the contemporary logistics industry is full of risks. This means logistics providers need to have an effective risk management strategy in place. Otherwise, it won’t survive in the ocean of constant changers and disruptions that may turn the whole logistics upside down in a matter of days.

Monitoring the most challenging processes, planning operations in advance, and predicting risks are the basic solutions you can adopt to prepare your company to dodge the uncertainties and risks bullets. Again, the Twincore client we’ve mentioned above asked for an integrating analytics tool for a reason: the company needed to monitor its expenses and identify processes that are the most costly. In such a way, adoption of analytics along with other logistics software is essential for a solid risk management strategy.

Monitor compliance and procurement

International logistics can be a minefield of regulations that vary by country. Failing to comply can lead to delays, hefty fines, or even seized shipments.

However, by staying informed about changing regulations, using compliance software, and properly training employees, businesses can navigate these complexities, minimize risk, and unlock the vast potential of global markets.

Optimize route planning

Inadequate route planning is one of the main reasons why logistics providers face increasing expenses. Around 39% of companies are concerned with fuel costs that directly depend on how adequately delivery routes have been built.

That is why another Twincore’s client turned to our team with a request to develop a rate engine with a door-to-door routing feature. The client wanted to create value for its own customers by optimizing their delivery costs, which is why enabling them to select the most appropriate routes for order delivery was the goal.

The TwinCore team developed the entire solution from scratch, so our client is able to offer its customers multiple route options for their freight operations and logistics. This tool lets the company’s customers pick the most appropriate one in terms of cost and time.

Advance warehouse processes

Warehouses are an integral part of the whole supply chain and it offers a fistful of opportunities to improve your logistics operations. For now, as many as 80% of warehouses have no automation and still rely on manual work, so you have a chance to be one of the first who automates your warehousing and gets an upper hand in competition.

To start with, reconsider your warehouse layout: it’s highly likely you don’t use your space in the most optimal way possible. If you have the entire network of warehouses, consider developing a smart software application that will assist you with warehouse space planning.

A solid warehouse management system (WMS) can speed up and automate such warehousing processes as:

  • Warehouse layout optimization: The WMS can help design and optimize warehouse layouts to maximize space utilization and streamline workflows, considering factors like product access and picking efficiency.
  • Order management: The system can manage incoming customer orders, prioritize them based on urgency or other criteria, and ensure accurate picking and fulfillment.
  • Picking and Packing Automation: WMS can generate pick lists, guide pickers to product locations, and even integrate with robotics for faster and more accurate picking. It can also optimize packing processes to ensure efficient use of packing materials.
  • Labor management: Some WMS offer features to track employee productivity, optimize task allocation, and manage labor schedules.
  • Reporting and analytics: A WMS provides valuable reports and data insights on warehouse performance metrics like order fulfillment times, inventory accuracy, and picking efficiency. This allows for data-driven decision making to continuously improve operations.
  • Integrations: Modern WMS can integrate with various other business systems like accounting software, ecommerce platforms, and transportation management systems (TMS) for a more holistic view of your supply chain.

And sure thing: automation must come into play as well! Robots, smart conveyors, and even connected forklifts can significantly improve your operations within warehouses. We’ve all seen these smart robots Amazon uses in its warehouses. So if the industry leader actively implements such tech solutions, it means they do their job well: reduction of human error, manual work, space capacity optimization, decreased processing time and costs, you name it!

Feel free to contact the Twincore team as we have X years of experience in custom logistics software development and can provide you with a tech solution according to your business needs.

Enhance inventory management

Nearly 43% of businesses have outdated inventory tracking which becomes a reason for errors, delays, increased delivery expenses, and customer complaints. To optimize your inventory management, you can develop a software app that will digitalize and automate tracking of your orders.

The case of the order management system for our client is an on-point example here. Once the client needed a fully transparent view of its operations, record of inventory, fulfillment tracking, and monitoring of orders throughout the entire route were must-have features. Our team managed to integrate a relatable solution in the logistics software system we developed for the client.

Consequently, the client got automated notifications for shipping, picking, and packing to minimize manual tasks and operational time, leading to cost savings for the company. Additionally, a centralized view of all orders allows the company to adapt to current demand, spot potential delays, and enhance customer satisfaction.

Use predictive maintenance

As long as the logistics industry involves various machinery equipment from containers and forklifts to heavy trucks, their wear and tear can seriously impact your operations. To avoid delivery delays and other incidents because your equipment doesn’t work or can’t provide required conditions for order delivery, consider implementing predictive maintenance solutions.

Predictive maintenance is a proactive approach to equipment maintenance that uses data analysis, sensors, and machine learning to predict when equipment is likely to fail. By identifying potential issues before they become critical, it helps minimize downtime, extend equipment life, and reduce maintenance costs.

Adopting smart sensors, connected containers and trucks, as well as artificial intelligence software are the most common solutions you can develop to enhance your logistics operations.

Take your logistics operations to the next level together with TwinCore

These 7 ways of how to improve logistics operations obviously depend upon smart tech solutions. But not every single logistics provider has sufficient tech expertise to develop a relatable technology, which is why 42% of businesses consider outsourcing software development projects overseas.

If you need professional help with custom logistics software development, you can partner up with the TwinCore team. You can come to us with just an idea or even problem, and our team of experts will assist you in building a tech solution according to your requirements: from ideation to software development and continuous support.

Get in touch with us right now and we’ll get back to you as soon as possible.

FAQ
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