Nov 17, 2020 | Industry
Global supply chains continue to be affected by the COVID-19 pandemic, and there’s no doubt that even after it ends, there will be a shift in the way we do business forever.
As the virus began to take hold, supply challenges began to arise in China in February 2020, impacting worldwide demand as the economy shut down across the globe. This supply-chain breakdown revealed vulnerabilities in the logistics systems many of us have taken for granted over the years.
Trade restrictions and shortages of essential products like personal protective equipment, pharmaceuticals, and other critical supplies made it apparent that logistics need to be streamlined and simple to help freight forwarders keep track of cargo from end to end.
What else is inspiring this change?
Amidst all the chaos, there does remain some consistency. What hasn’t changed?
Consumers want low prices—especially during a recession.
Firms cannot pivot to domestic manufacturing without impacting prices or becoming less competitive.
Logistics companies need to ensure they operate efficiently to keep the supply chain intact.
Much like the leap to third-party logistics a generation ago, there’s a new shift happening in the freight forwarding industry, one that stands to have a wide-reaching impact. The shift? Moving away from specialized point solutions toward implementing logistics software that can cover operations throughout the entire origin-to-destination supply chain.
Are you thinking of consolidating your tools and adopting a single-platform logistics management software solution? Let’s review why this is a smart move to improve your business operations.
On-premises software tends to drain resources, and while modern solutions can be managed locally, more and more logistics businesses are choosing to leverage the cloud.
Many of these logistics teams are migrating to a single-platform cloud logistics service. They like that they don’t have to manage the equipment and servers, which typically accompany on-premises infrastructure. Operations can scale to meet the demands of the business and keep up with the supply chain, and logistics providers are able to pay on a cost structure that scales with the company.
What can be done with a solution powered by the cloud?
McKinsey Global Institute estimates that “the transportation-and-warehousing industry has the third-highest automation potential of any sector.”
Automation technology has come a long way. Warehouse automation increases efficiency, eliminates costly errors, improves your return on investment with faster processes, and can even measure and document pallets and send corresponding documents off to the right transaction automatically.
A single platform acts as a centralized foundation, which can simplify your processes. From warehouse to freighter and through customs to the final destination, tracking for each step of the journey is handled in one place. Even customs, duties, tariffs, and multiple customs regimes can be managed by the same software.
A single management platform can also help teams manage a single warehouse or multi-country customs and compliance. This gives companies the ability to cut costs, reduce the time it takes, and minimize compliance fines and other complexities in the supply chain.
Operations, accounting, tracking, connectivity and compliance? All of it can be funneled into one place, meaning teams can work more collaboratively from one single, unified platform for a seamless workflow.
Logistics management software provides features to enhance logistics companies’ operations, including: