The logistics sector is under pressure from fierce competition and shrinking margins

Madrid, April 4, 2023 – Logistics process optimization and document software technology

Like many other industries, the logistics sector is under pressure from fierce competition and shrinking margins, forcing it to minimize costs and optimize workflows to eliminate inefficiencies.

And one of the ways to mitigate these inefficiencies is by using tools that improve document processes and areperfectly adapted to each company’s situation and workflowto create a powerful and flexible logistics document software solution.

Challenges of the logistics industry

The logistics industry faces significant challenges:

  • Every day, logistics operators receive a large volume of documents from multiple sources in different formats and must merge them into a single set.
  • Carriers must travel long distances to the headquarters in order to deliver the documentation signed by customers to the administration department.
  • Paper-based document management makes it difficult to identify errors, since it forces the administration staff to review papers one by one, which is anachronistic in this day and age.
  • Carriers must manually record recipient data, which increases the likelihood of errors when retrieving data.
  • Once the carrier delivers the invoices for the shipments, it takes a long time for the administration department to archive them together with their respective delivery notes.
  • Process inefficiencies and downtime cause productivity to decline.
  • The costs of managing documentation through non-digital systems increase.
  • Customer satisfaction plummets when they do not know what happened to their parcel.

Benefits of a streamlined logistic document software solution

New advanced document software systems help overcome these challenges and solve all these problems. Let’s take a look at the many advantages they bring to logistics companies and their employees:

  • Documents are generated in real time. The operator is always aware of order delivery status and carrier location. Access to documents is immediate.
  • These documents contain barcodes, allowing them to be scanned and stored digitally for easy management.
  • There is no need to print hard copies of documents for internal use, thus reducing paper consumption and the physical space required to store massive quantities of paper.
  • The delivery notes for each customer are automatically archived and linked to their respective invoice, and the invoicing process is much faster.
  • Invoice changes are made digitally, not manually, i.e., the carrier no longer has to give the customer a paper invoice, but the customer receives an email with the documentation. This also substantially reduces paper consumption: up to 600 kg per year of savings.
  • Carriers themselves can manage allthe documentation they need without relying on the administrative staff and avoid misplacing documents.
  • Documents can be stored in a common repository that allows retrieval and modification of older documents.
  • Documentation can be digitally signed before being entered into the operator’s data management system.
  • Carriers can report any incidents that occur during the journey via their mobile phone.

Why some logistic companies don’t implement logistic document software solutions

It is clear that there are advantages for all stakeholders in choosing an advanced logistics document software platform. However, in 2023, there are still obstacles that prevent some companies from digitalizing their documents. Why? Mainly for three reasons.

  1. Many logistics operators are micro-enterprises or SMEs with few employees and small fleets that do not have sufficient financial resources to digitalize their business.
  2. Even large operators that have actually digitalized their operations must rely on self-employed carriers to supplement their fixed fleets, which hinders the technological integration of all those involved in the supply chain.
  3. Finally, the average age of operators’ workforces is often high, and an aging workforce is always reluctant to learn and use new technologies.

Large operators have long been enjoying the many benefits of streamlining their processes by implementing sophisticated logistics document softwaresolutions. They know that the future of the sector cannot be understood without the digitalization of their processes. It is not only a question of cost and efficiency, but also a question of the environmental impact of this industry.

Technology and tools for the logistic industry

Today, more physical goods are being shipped than ever before, especially in the wake of the lockdown caused by the COVID-19 pandemic. In order to continue to deliver the 85 million or so parcels that are delivered every day around the world, the logistics industry must be more sustainable, and this means implementing technological tools:

  • Solutions to monitor shipments onlineand ensure the flow of goods.
  • Digital invoicing systems that make it possible to banish chaotic Excel spreadsheets.
  • Transportation management software (TMS) that automates loading and unloading.
  • Online quoting system that replaces phone calls and e-mails and optimizes response time to customers by enabling instantaneous shipment contracting.
  • Fleet management software to control trucks, drivers and license plates.
  • Analysis tools that provide a detailed, real-time snapshot of the flow of goods and identify those warehouses where delays in loading and unloading occur the most.
  • Beyond the indispensable GPS, there are systems that automatically plan and design routes using artificial intelligence algorithms. These systems minimize the distance the vehicle travels empty, which in turn reduces unnecessary fuel consumption and CO2

Logistic industry trends for 2023

There are already certain trends in which document management systems will have a lot to say this year:

  • Synergies with e-commerce. Internet sales have led to a boom in demand in the logistics sector. Customers are becoming increasingly demanding and logistics operators are stretched to the limit, especially on key dates such as Black Friday and Christmas holidays.
  • Reduced delivery and return times. Amazon has raised the bar and so have customers: they want to receive their order quickly, at a convenient time and in the place that suits them best.

Logistics 4.0. The digitalization of the supply chain will materialize, and the aforementioned technologies will eventually be implemented and will set the course for the years to come.

2023 will continue to be a year full of challenges, such as the fragility of global supply chains, strong demand for road transportation services or rising fuel prices, not to mention the aftermath of the pandemic and geopolitical tensions arising from the war in Ukraine.

In this context, logistics and distribution companies need to improve their competitiveness and make better decisions with the help of advanced logistics document software and other tools. New technologies and the data they generate, and process can be the driving force that pushes them in this direction.

 

About DocPath

DocPath is a leading enterprise document software company that offers its international customers the technology that allows them to complement their ERP and implement advanced Document Output Management, Customer Communications Management and document software pooling processes.

Founded in 1993, DocPath is based in Europe, USA and Latin America and is present with its Solutions in companies around the world. Among its customers there are prestigious banks and top-tier corporations, facilitating the difficult and complex task of designing, generating and distributing their business-critical documents. DocPath keeps a strong commitment to R+D+i, an area to which it allocates a large part of its revenues, and in which lies one of the keys to its success.

For more information, visit: www.docpath.com.

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