The biggest advantage of automation is the fact that it saves job, however, it’s also utilized to enhance quality, accuracy, and precision and to save energy and materials. This same rule of automation, to fall labor time spent on manual entry say, for instance, in the process of planning the motion of procured and purchased goods in the supply chain, also known as logistics, helps decrease costs and affect the bottom line, all while falling malfunction and enhancing overall customer service. But before we get into the advantages of logistics automation, let us first define it.
What’s Logistics Automation as It Applies to Transportation Management?
When we discuss logistics automation, we’re speaking about all of the automation features available in the technology of a Transportation Management System (TMS) to manage your transport and freight departments. We view logistics automation as the decrease in the automatic retrieval of options in the acquisition of transportation for your cargo along with the manual entry of processing freight shipments. Moreover, logistics automation in a TMS will provide automatic notifications and real-time upgrades of cargo information.
6 Advantages of Logistics Automation in a TMS
The decline in Expensive Errors: Logistics automation features, for example, automatic storage and entry, in addition to integration to access to your address book and your commodities via your ERP system of accessorials and fuel surcharges, will have you worrying about keying in the information that is wrong. These kinds of manual data entry errors will result in increased shipping prices such as needing to cover shipping or paying a higher freight rate due to entering an incorrect commodity freight categorization.
Access to Real Time Freight Rates and Transport Mode Choice: To combat rising transportation costs the logistics automation features in a TMS makes it simple for users around the nation to run policies that deliver instant cargo economies. That means the TMS program is constructed with a state of the art web services design, in order to receive carrier rates that are live over the Net. No theoretical savings, but challenging ROI based on live, seller neutral accessibility to real-time market rates. When you have several carriers to select from based on cost, transit time, and insurance, it empowers you to make the best choice for your specific cargo, hence saving you money over the very long haul.
Increased Customer Service: How much does it cost for you to LOSE a customer? With logistics automation characteristics in a TMS such as real-time freight tracking, auto pick-up, appropriate insurance and cargo accounting built to your custom specifications, you and also your customer are empowered to understand just how much the freight will cost and when the cargo will arrive at its destination through automatic notifications.
Access to Evaluation and Real Time Cargo Data: When you’ve got access to real-time freight data and the capability to run reports, you are better served by making better business decisions predicated on history and your tendencies. For example, you might find out through the information that 80% of the time you decided Carrier “A” because they were the least cost carrier, but you find out in the info that that carrier is late 20% of the time, causing you to produce a stigma of bad customer service. In the long run, so you can save money on the front end of shipping, creating such a bad blot, could hurt you over and above the cargo savings by perhaps losing customers or not being able to gain new customers. Accessibility to precious data at your fingertips with the push of a button empowers you to mitigate future expensive awful decisions and to see the overall price of your decisions.
Organizational Management: With logistics automation attributes in a TMS you’re able to recover control over danger, freight costs, and freight management, by using the TMS’ rules engine, which relies on strategies that are optimized and routing guides. A TMS is flexible enough to adapt custom firm business rules, yet powerful enough to force all users, both outside and internal, to follow the policies that ensure efficient and cost effective transportation. The system’s usability must be such that managements could be designed and executed by logistics specialists with decades of hands-on expertise in logistics, rather than by computer technicians.
Speed and scalability: With such strong logistics automation features in your TMS there are ships more cargo and no additional resources needed to handle your logistics, freight, and transport sections, even as your company grows. As more cargo grows and sends, a TMS enables you to readily input new users into the system and manage them. Additionally, within the TMS bookkeeping automation feature with a fantastic freight, all cargo invoices can be combined into one invoice that is weekly, regardless of how many cargoes each place has, making your CFO or controller’s job a whole lot easier to handle!
Automation at it’s finest, and when employed right, drives many benefits to help a company’s bottom line. When it is automation in the way of robotics on the production floor or automation features which remove manual procedure, or automation features that give you info seamlessly at will, one thing is for sure, automation in every industry is on the rise. Logistics automation in a transportation management system eliminate waste, definitely helps drive efficiency, and most importantly helps conserve cash in your transport section. Have you used automation in your workplace and in your regular life? Let’s know in the comments section below!