Section of (GUIDE: Growing your fleet and logistics business)
Assess current logistics processes and identify areas that can be improved through digitalization. This may involve mapping out current workflows and identifying pain points.
Some common processes followed by logistics companies in the industry:
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Order Management:
A logistics company typically receives orders from customers, and the first step is to process these orders. This involves checking for product availability, processing payment, generating an invoice, and creating a shipping label.
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Sub-contractor visibility:
When relying on multiple sub-contractors, who make use of different telematics providers to track their vehicles, it is imperative to find a system that will provide you with sub-contractor visibility.
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Warehousing:
After the order is processed, the products need to be stored in a warehouse until they are ready to be shipped. The logistics company should have a system for receiving, organizing, and managing inventory.
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Inventory Management:
Keeping track of inventory levels, monitoring inventory turnover, and identifying obsolete or damaged products is a critical part of logistics management. Inventory management systems are used to track and manage inventory levels in real-time.
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Transportation Management:
Logistics companies are responsible for delivering products from the warehouse to the customer’s destination. This involves managing multiple modes of transportation, including trucks, trains, and planes.
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Route Optimization:
The most efficient route should be selected for transportation to ensure the timely delivery of products while minimizing transportation costs.
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Delivery Tracking:
Customers want to know the status of their delivery, so logistics companies provide tracking information through an online portal or mobile app.
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Customer Service:
Logistics companies should have a customer service team that can assist with order inquiries, product returns, and other issues that customers may encounter.
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Analytics:
Logistics companies often use data analytics to identify areas for improvement in their processes. Analyzing transportation costs, inventory turnover, and delivery times can help logistics companies optimize their operations and increase efficiency.
Overall, logistics companies follow a variety of processes to ensure the timely and efficient delivery of products to customers. These processes involve managing inventory, transportation, and customer service, among other functions, while constantly seeking ways to improve operations through the use of technology and data analysis.
Read the next section: 3. Evaluate technology options
