Driving the industry forward: 5 key benefits of logistics technology

The supply chain is under mounting pressure to keep the economy moving. Without it, companies can’t get their products to consumers. While the challenges the industry faces, like the truck driver shortage and the capacity crunch, aren’t going to be overcome anytime soon, something needs to be done to help alleviate some of the stress points—because even the slightest delay could have subsequent effects.

From port congestion to a shortage of available trucks to move cargo and from a lack of warehouse space available to the equipment and parts shortages that are plaguing fleets, the challenges keep stacking up. But those hurdles won’t be overcome anytime soon. Instead, the industry as whole needs to look for areas where any slight improvement can create more efficiencies and keep goods trucking along. So, what’s the solution?

Logistics technology. While that may be a scary reality for companies to face—especially in an industry that still heavily relies on paper transactions and manual, ad-hoc processes—the return on investment could be the spark businesses need to improve worker safety, create operational efficiencies, and boost their profit margins.

But for logistics technology to make a more positive impact, it will take original equipment manufacturers, freight cargo lines, port authorities, the trucking and railroad sectors, warehouse facilities, and everyone in between pushing in the same direction to speed up adoption. To show just how powerful logistics technology can be, here are just five of the many benefits businesses can experience by implementing more of it.

Better communication

For the supply chain to work effectively, a lot of information is passed from one party to the next. The records of such transactions have been kept via paper and pen for decades. But think how slow that is or how many errors are potentially introduced due to illegible handwriting. That doesn’t even take into account being able to communicate with truck drivers on the road, for example, if they need to be rerouted.

Logistics technology enables all parties along the chain to simplify getting messages to one another or to pass along documents a lot quicker. With cloud applications, processes like passing along a bill of lading or routing become digitized and create a seamless way for those tasks to be done, all while limiting errors. Plus, the information is logged and disseminated across the platform for all parties involved to see, so no one can claim false reporting without the likes of the shipper, carrier, and receiver all seeing it.

More accurate finances

With constantly fluctuating fuel and transportation prices, it can be difficult for businesses to adjust on the fly and keep track of things like surcharges or fines from detention fees. However, tech not only can help companies adjust in real-time, but it can ensure all parties are on the same page and that billing is accurate—no more having to decipher others’ handwriting. With billing information being transmitted digitally, technology enables the most accurate figures are kept by creating a blockchain-like record of the truth, reduces the chances of human error, and allows for better business intelligence through the data reports and forecasting capabilities it generates.

Improved data and analytics

Prior to the introduction of mass technology use in the supply chain, back-office employees had to keep records of everything by hand. If the company wanted to forecast for the months ahead, it would manually look at historical trends and predict what might work for them. That’s a time-consuming and laborious task, which might not even be all that accurate.

With the data and analytics that technology collects and can generate automatically, that process gets sped up and becomes more accurate. Rather than taking hours, or even days, technology can spit out a report in seconds. This enables businesses to better forecast future supply and demand, as well as make more informed and quicker decisions—all of which are efficiencies that help the entire supply chain.

Greater efficiencies

Manual, outdated processes take forever and wear employees down. In a time when labor shortages are severely hampering businesses across the board, shouldn’t they be looking at every possible solution to make the employee experience better?

Technology can be the answer. Ditch strenuous and time-consuming activities that can easily be replaced with technology. Leave paper in the office and not in the cab of truck, making the drivers job easier. Implement processes that can enable workers to automate certain tasks and allow them to focus on more mission-critical aspects of their job. Overall, technology speeds things up and makes sure they progress along the chain.

Safer operations

Safety is every company’s number one priority. If there’s any opportunity to improve safety in any operation or task, the change should be made. There’s no doubt that logistics technology has afforded businesses more opportunities to improve the safety and well-being of their employees.

From onboard truck cameras to robots in warehouses and everything in between, technology has greatly improved workers’ physical safety. The last thing companies want is to lose a worker due to injury, which impacts their bottom line in having to pay worker’s compensation.

These are just a few of the main benefits companies can see almost immediately by implementing logistics technology into their everyday solutions. Fixing the supply chain challenges won’t happen overnight. But if shippers, carriers, and receivers work hand-in-hand to make incremental improvements, just maybe can the supply chain can flow more smoothly.