7 Technological Breakthroughs for Reducing Logistics Costs

Low logistics cost head is one of the essential objectives in business operations which dictates the overall profit margin. Manufacturers from various sectors strive to reduce their logistics and supply chain management expenditure to achieve a competitive edge in the industry. However, a significant question at the grassroots level is how to reduce this cost.

The Indian industry-wide logistics reports indicate that manufacturers are incurring high logistics costs due to multiple loopholes in the operational flow. Manual logistics subject them to significant challenges like increased detention, unoptimized TAT, high freight rates, coordination discrepancies, follow-up calls, and lack of visibility into the dispatch cycle. All these factors contribute to the high logistics cost. With widespread digitalization, several countries have tackled this prevalent issue, and Indian manufacturers are broadly implementing technological breakthroughs. 

7 Impactful digital solutions for reducing logistics costs

Digitalizing the logistics and supply chain management operations is a pragmatic step toward lowering logistics costs and ensuring budget adherence. Besides offering unparalleled logistics efficiency, digitalization reduces logistics costs through 7 transformational solutions.

Float the load requirements digitally

Digital logistics solutions like SP Freight Sourcing-Spot are an optimal freight procurement solution to get more quotations and ensure low freight costs. It allows logistics team members to digitally float their load requirements and reach multiple transporters with one click, saving time and money.

Automated e-negotiations with the reverse auction feature

Negotiating with transporters is one of the primary processes in freight logistics. Digital solutions like SP Freight sourcing-Spot offers the reverse auction feature to enable effective and transparent negotiation processes. Every transporter is allocated a rank per their freight rates, and they can view their grades in real-time and revise them to improve their ranking. This revision of quotes by transporters ensures the best market freight rates for businesses. 

Digital indent allocation processes

Indent allocation processes play a significant role in determining logistics performance and TAT metrics. Automated load allocation solutions like SP Indent allocation ensures faster TAT with a reduced manual workload, and low TAT directly contributes to optimal logistics spending. 

Transparent in-plant coordination and operations

Transparent in-plant operations are a primary aspect of logistics management. Digitalized logistics solutions like SP In Plant Logistics ensured operational transparency and reduced TAT. The stakeholders can coordinate in real-time and prevent discrepancies. These benefits result in lower TAT and enable a seamless in-plant workflow.  

Real-time tracking of in-transit shipment status 

Absolute visibility into the dispatch cycle is a crucial aspect of shipment operations. Digital solutions like SP Shipment Tracking allow the logistics stakeholders to track their shipment status in real time through a GPS-tracking feature. The vehicle movements and deviations are captured in real-time, reducing detention at unloading. 

Digital alerts and updates of every process stage

Digital alerts, updates, and confirmations reduce follow-up calls, minimalize manual workload and enable strategic actions. Digitalized solutions like SP Proof of Delivery allow manufacturers to collaborate efficiently among stakeholders, reducing follow-up calls and discrepancies. 

24*7 web and mobile access 

Digital TMS solutions like those offered by SuperProcure provide 24*7 web and mobile access features to improve stakeholder collaboration, adoption, and participation. It ensures faster turnaround time and a reduction in coordination errors.

Digitalized logistics- A game changer in business’ supply chain management

Implementing optimal digital solutions in logistics and supply chain operations can change the face of businesses. As more and more companies are adopting new technologies, SuperProcure is advancing rapidly towards the goal of optimizing the logistics workflow. Its tailor-made solutions allow businesses to reduce logistics costs from freight procurement to invoice settlement.