With huge technological advancements, logistics is one of most untapped industry, especially when it comes to management solutions.According to latest surveys done by Mckinsey, the logistics cost in India is 13 to 15 % of the actual cost of the product, while the global average cost is 6%, the wastages caused by inefficient logistics is equal to 4.3 % of the GDP, and, if not corrected, will increase to 5% of GDP or $100 billion by 2020.
In logistics and freight forwarding business, the need is to move freight from origin to destination efficiently, reliably, and cost effectively. Freight business is extremely process driven and involves immense paperwork which revolves around different aspects of the business. The requirement of multi-carrier integration was to curb the slow delivery and information loopholes, along with real-time tracking of shipments.
Major Challenges faced by in an inefficient logistics solution are
- Real time freight tracking of shipments: The existing systems have no connected databases and real time freight tracking system to locate the real time position of freight.
- To provide a simple solution that copes with the multi-currency, system wide invoicing and job costing.
- The need for an effective high-performing unified business and IT infrastructure to drive the transformation of freight operations.
- SOA -A solution to integrate and have Mobile Solution which can go across the business processes.
- Customersare not able to see the product & delivery efficiencies to increase the customer base.
- Clientsare unable to manage warehouses and rate shops and optimize freight budget and route optimization.
Approach to the challenges
The Solution must allow the clients to find the most strategic carrier based on the various factors such as Rate matrix, transit time and retail compliance.
Some exclusive feature to tackle these challenges can be-
- The user friendly and plug n play solution must not require extra training. Once rates and various master are established the solution should not require further human involvement, such as manual entry and freight negotiations
- Freight management solution must provide warehouse management with ability to integrate with carriers that meet a customer’s specific delivery needs.
- The system should automate the route optimization of transit along with the real time freight tracking.
- The system should be capable of generating bills, invoices with all essential pre-defined information. Making all document handling hassle free.
Expected results with efficient Freight Management System
The efficient and cost-effective freight & logistics management system must handle logistics business tasks such as creating contracts, auditing invoices, managing deliveries with freight tracking feature which will enhance the customer reach and increase customer base. The custom reports should be easily generated through the freight & logistics management system, which will enable client to analyse their supply chain to make continuous improvements.