By Srinivas L
New age logistics companies are using technology to make massive supply chains easier to manage. A few ways they are leveraging technology to increase the efficiency of SME's supply chains are as follow.
REAL-TIME TRACKING
The availability of real-time tracking is undoubtedly one of the most crucial reasons for the success of the e-commerce industry. Real-time monitoring is made possible by high-speed internet. It is not a coincidence that since the rollout of affordable 4G connectivity, e-commerce in India has skyrocketed. Effortless and accurate real-time tracking of products is among the many reasons why 4G facilitated the e-commerce industry.
BRAND SOLUTIONS
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Knowing where products are along every step of their journey towards their destination is a massive plus for SMEs and buyers. SMEs that manufacture and ship products have clarity about the location of their products along with time estimation to delivery.
Buyers are benefitting from real-time tracking, as well. They know the near to accurate location and time of the deliveries. Consequently, SMEs that ship goods using logistics companies that offer real-time monitoring are perceived as being better by the buyers. Hence such SMEs enjoy more orders than their competitors.
In addition to SMEs and buyers, delivery persons are also benefitting from real-time tracking. They are being provided with clear directions to buyers’ offices or homes and when necessary, quickly contact them. In instances when an order is canceled while in transit, they are alerted immediately saving effort, time, and their employers’ money.
Real-time tracking is removing all grey areas associated with logistics and giving every stakeholder complete transparency. By providing SMEs real-time tracking of incoming and outgoing deliveries, new age logistics companies are making shipping more straightforward than ever before.
ARTIFICIAL INTELLIGENCE
Scarcely does any industry remain that is untouched by artificial intelligence (AI). In logistics, AI has a huge role to play, as well. Artificial intelligence is helping the supply chain managers manage huge supply chains by assisting in decision making.
A manager overseeing a supply chain must consider the interests of his employer. To do so, he or she must find ways to lower costs; this can be accomplished by sourcing from vendors that offer better value. AI is spotting opportunities along supply chains that even seasoned supply chain managers, miss. Once AI identifies better vendors, it brings them to the attention of managers to assess the advantages or disadvantages of changing a supply chain. Once managers believe they’ve considered all options, they make the final decision.
Artificial intelligence is being applied in even more nuanced ways by new-age logistics companies. Consider that for SMEs that ship to customers, managing returns is a huge opportunity and challenge. It is an opportunity because when returns are managed in a manner that meets customers’ expectations, it wins business for SMEs. Conversely when returns are poorly managed SME's sales suffer. Managing returns presents another challenge, as well. Many customers habitually return goods for no reason. Managing such customers is challenging for every SME.
AI is making managing returns easy by ensuring delivery persons when required to return goods, carry suitable replacements. Also, it is predicting with a high degree of accuracy, which buyers are likely to return goods. Armed with such information, SMEs can decide whether they want to ship to those who are likely to return goods. AIs capability extends further, as well. It often automatically blocks orders from buyers who are sure to make returns. Hence AIis saving SMEs tremendous time, money and effort and leading to confident decision making by SMEs.
AUTOMATION
Before new-age logistics companies, SMEs had difficulty shipping products. They faced challenges because shipping required an army of workers to transport, label, and monitor shipments. Because of technology, what earlier needed ten dozen workers can be done with less than five workers. Products can be labeled automatically and be monitored and tracked by just four workers seated before a logistics control center. They are fed real-time information about every delivery and alerted when they need to decide. Because of automation, many SMEs have become successful in industries they wouldn't have ventured into earlier.
New age logistics companies are helping SMEs become more efficient by assisting them in shipping along optimized supply chains. Technology in the hands of logistics companies is helping SMEs lower costs and giving customers the kind of experience, they expect.
The author is CEO & Co-founder of 72 Networks
Rural India is growing exponentially and presents the huge untapped potential for Indian products and services.
However, poor infrastructure, low connectivity, lack of proper channels are the reasons why many companies are unable to penetrate these markets properly.
How can companies overcome these hurdles and seize opportunities in these areas?
They are:Leveraging existing sales and distribution network -A lot of companies have a strong distribution network, because of which they are already present in most corners of the country.
They only need to expand this network further to expand their reach and be present in the remote villages.Hub and spoke model -This model is comparatively an easier to manage model in which stocks are sent to one central 'hub' and then distributed to other parts (spokes) from there.
It helps in dispatching goods in bulk to one area and hence reduces cost.Feet on the street -This model entails using the local talent to introduce the brand to the villagers and engage them with the company.
This article will tell you how to minimize last mile delivery issues
Last-mile delivery logistics is no rocket science. It is one of the most common networks in the transportation industry.
And I think this guide will act as an eye-opener for anyone facing confusion with last-mile deliveries.
To the ones within the industry, they know how vast and important it is last-mile delivery logistics.
It contributes about 28 percent of the total cost of the shipment. In addition, growth in e-commerce is also rising and radicalizing the way shippers look down at last-mile logistics.
Moreover, logistics of e-commerce which includes fulfillment and delivery has further made last mile very crucial in the transport industry.
The Last Mile Delivery market research report provides the latest industry data, growth, key segments and future trends on the basis of the detailed study.
This market report also allows you to identify the future opportunity and growth rate of the leading segment based on regions and countries.The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide.
The major players in the last mile delivery market include United Parcel Service of America, Inc., FedEx Corporation, USPS, XPO Logistics Inc., DHL International GmbH, Ryder System Inc., Schneider National Inc., J.B. Hunt Transport Inc., ArcBest Corporation, SEKO Worldwide LLC.
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Consumers increasingly turn to e-commerce for all their shopping needs speedy fulfillment.
Along with emerging trends, the market is facing some challenges which include complexity, navigating traffic, and shortage of drivers.
