When it comes to the logistics industry, businesses face a unique set of challenges that can be addressed through digital technology.
#1: Controlling Fuel Costs
The cost of fuel rises and falls, but logistics professionals face a big challenge when it comes to figuring out how to make the business profitable when the fuel prices rise.
Higher fuel costs will increase the cost for a U.S. shipper, and this pushes up the fuel surcharges, which makes it even more expensive.
But, through the use of technology, it’s possible to analyze the routes of drivers and figure out the route that will save the most on fuel costs and elevate profits.
“1SHIFT Logistics, developed by LiteLink Technologies shows live capacity by lane to quickly understand the market. Review historical pricing information, partner ratings, and current factors such as fuel prices, weather, and backhaul capacity to make informed pricing decisions real time,” said Ashik Karim.
1SHIFT Logistics is an end-to-end logistics management system that manages complex freight shipments through the use of advanced technology such as artificial intelligence (AI) and blockchain technology.
Using this technology, carriers, shippers and brokers have unified communication to track shipments, resolve disputes and correct errors, thereby reducing costs by at least 30 per cent.
#2: Government Regulations
Carriers have to understand federal, state and local regulations to stay compliant, and a failure to comply can lead to tens of thousands of dollars in fines.
Along with federal regulations, logistics professionals also have to comply with the environmental regulations from the government. Some of them include anti-idling and emission reduction.
The advantage of many technologies is that you can set it so that it automatically complies with the regulations. In this way, your fleet doesn’t even have to remember all the regulations because it has already been set up.
However, it’s still a good idea to know all these regulations so that you can be sure that you remain compliant.
#3: The Supplier and Partner Relationship
This relationship is crucial for the success of logistics industry businesses because you have to meet at a mutual point where you both agree.
Not only is it important to understand the current level of performance, but also to look for opportunities to improve upon. The problem is that you often get two different methods for measuring these things, and it wastes much time and energy.
Technology allows for better communication, in order to eliminate as many errors as possible.
#4: Risk Management
There should be little doubt that this industry comes with its fair share of risks.
In order to remain effective as a business, it’s crucial to conduct periodic assessments that are honest and look at performance levels and how to improve.
The adjustments get put into place to respond to the changes within the market. Technology has become increasingly good at identifying these risks and figuring out how to mitigate the dangers to business.
“We have seen the telecom, cable, and auto industry transform, and the logistics industry has always lagged due to poor adoption. We see a way to improve this industry with technology, translating to satisfied customers, drivers and shippers, said Ashik Karim.
He continued: Everyone wins with better technology. This logistics technology evolution can drive efficiencies to an industry that needs it badly.”