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Effective logistics management system lead to business growth?

Effective logistics management system lead to business growth?

Logistics has been a key business function for decades now, and its importance is almost akin to oxygen for breathing. As a result, funding in this sector has gradually increased every year, and it nearly doubled from $18.18 billion in 2020 to $33.6 billion in 2021. Moreover, the global logistics market achieved a value of $9,500 billion in 2021 and will cross $13,300 billion by 2027 with effective logistics management system.

Companies need a holistic logistics management system to keep the enterprise going because it directly contributes to your business growth. This system includes:


Logistics Management System Module

With the above modules in place, here’s how a logistics management system can grow your revenue:

  • Optimizes dynamic efficiency

The primary purpose of a logistics management system is to ensure the timely delivery of products. But it also encompasses the overall process of resource acquisition, packaging, storage, handling, distribution and processing. To perform these tasks, it must streamline warehousing, inventory and transportation.

Before technology had such far-reaching applications, companies handled freight forwarding manually with physical books, spreadsheets and phone calls. Today, digital capabilities arising from Big Data, Artificial Intelligence (AI) and the Internet of Things (IoT) make the process more efficient.

You can have real-time visibility of in-transit cargo, allowing for better accountability. Similarly, fleet tech helps detect pilferage, theft and transport slip-ups. Some enterprises are developing self-driving trucks to improve logistics systems, too.

Digital logistics providers offer dynamic optimization of freight contracting, allowing you opportunities to find the best costs. More providers are adopting vessel sharing to reduce financial and environmental implications. Technology also helps you measure KPIs to showcase impact on business goals and make adjustments quickly before it’s too late.

With a logistics management system, you gain better efficiency and reduced operational costs with overall improved visibility into bottlenecks at the end of it all.

  • Improves customer experience 

Customers are well-versed with digital devices and superior customer service today. Since eCommerce received a massive boost with on-time delivery in the pandemic, the trend has continued.

Seamless customer experience is no longer a rarity but a necessity. An IDC snapshot report (in association with SAP) showed that 25% of businesses consider improving customer experience a top digital investment.

Your business could lose credibility if even the tiniest links in the supply chain fail. Here’s where a logistics management system could play a significant role in the on-time delivery of products.

  1. Order and inventory management systems let customers keep track of their deliveries.
  2. Warehouse management ensures the delivery of the right products to the right shopper.
  3. Effective transportation management protects deliveries from theft and damage.
  4. smooth reverse logistics system (for returns and refunds) further improves the buying experience.

Logistics management systems, such as ECU360’s integrated freight forwarding solution, also help businesses simplify shipments-related actions like scheduling, tracking and cancellation using various solutions.

All of this enables effective last-mile, on-time delivery for a brilliant customer experience.

  • Builds competitive advantage

Recent developments have rendered the business landscape volatile, with political and socio-economic events having far-reaching effects in an interconnected world.

Amidst this, you need to adopt the OODA approach (Observe, Orient, Decide, Act), wherein you observe the changes, orient your business to new possible directions, and decide which course of action is the most favourable and act on it. A logistics management system operates with this approach.

  1. Today, it doesn’t just help your enterprise run current deliveries. Data gathered through supply chain operations predicts future trends and capabilities.
  2. It also helps you with insights and analytics to be flexible and agile. You can quickly adopt new solutions such as electric vehicles, green logistics, and robot automation, among others.
  3. Plus, you have complete visibility of the supply chain and extended systems, which aids you in identifying opportunities before your competitors do the same.
  4. Digital logistics management systems using AI, ML or blockchain also reduce human errors in the warehouse and inventory.

A prime example of adapting to disruptions is Henkel. When the pandemic hit operations in 2020, the brand modified its sales and operations planning process in a matter of days. An effective logistics management system gave the brand a much-needed boost in achieving supply chain resiliency quickly.

The Bottom Line

You’ll notice that everything above mentions digital innovations disrupting the business ecosystem. Technology increases visibility and accountability across the supply chain by replacing traditional systems, bringing about exponential business changes. Earlier, the company’s investment in logistics management technology was considered a ‘cost’. But today, it’s regarded as a ‘key’ player for growth’. This attitudinal change is vital for the sector and eventually for development. As we move from a linear to a circular economy, an effective logistics management system will play a critical role in ensuring business success.


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