How to optimize logistics processes in order to increase profit growth and reduce company costs

The economic downturn in the world leads to a decrease in purchasing power, it leads to profit decrease. A well-designed system of team interaction could help to maintain positions in the market. The essence of optimization is to get more returns from employees, increase profits, and the number of loyal customers at the same costs.

The need to be effective at the stage of negotiations and during the implementation of the project dictated by the modern realities of business. We, in DataArt, think that it is important to communicate with customers, understand the real needs, and optimize each and every milestone because miscommunication and huge scopes without proof of concept can lead to wasted time, profits and dissatisfaction.

Optimization of business processes in an organization should affect not only the team but also the workflow. By introducing professional logistics software, you can avoid confusion with contracts, acts and eliminate the loss of papers.

All the documents should be created by pressing one button. At the same time, the information has to be visible to all participants in the transaction: the client, the carrier, and the logistics manager.

General Documents Automation Workflow:

1. The user uploads an application to the platform using a personal account.
2. The logistics company appoints a driver and forms a package of documents according to a template.
3. The driver receives the order, coordinates the route, and starts work.
4. After the delivery of the goods, the parties receive the supporting documents.
5. At the same time, all participants in real-time can track the movement of the car on the map and chat.

Smart Logistics Automation Workflow:

Understanding the need of your company — choosing the right software or create a new one from scratch.

Gather all requirements and create a scope of the project.

When the project is ready it should have at least the following features:

Creation reports for your business tasks.

Integration with other software.

Automatic conversion of currency rates.

The convenient structure of the program: Requests, Orders, Clients, Carriers with different access levels.

Ability to control the company’s logistics income and expenses

Requests: Convenient work with all inquiries from clients (customers).

Clients: Contains information about each client.

Orders: Contains all orders with different statuses.

Transport: Contains information about Carriers with different statuses.

Reports: Reporting on debts, income, expenses, customer contacts, and other customized operations.

Documents: Internal documents storage and workflows creation.

Companies believe that creating software from scratch is the best option. The company will take into account the criteria necessary for the operation of the enterprise, the customer will receive a transport logistics automation program, the records will remain safe.

But it’s so simple only in theory. In practice, it turns out that the customer does not fully understand what is really needed, the developer does not understand the customer, the development lasts for months (at best) or years. As a result, the finished application turns out to be “raw”, since there is no time for normal testing. In the course of using the software, it bugs, leads to malfunctions, the organization suffers losses. That’s why the best option here is to have a discovery phase and collaborate with team of professionals to come up with the best option, sometimes it is better to integrate SaaS product and customize it, sometimes create from scratch is the best idea.

Some companies use simple Excel documents. Unlike logistics software, Excel does not synchronize records, is filled manually, and is difficult to use for organizing large-scale logistics processes. And if the company has more than 10 employees, then file sharing becomes a real problem.

The efficiency of the logistics system, in this case, is questionable. The software solves several problems at once:

• Structures data by orders, inquiries, clients, and translators. The necessary information can be found in a couple of clicks.
• Allows you to work remotely. If an employee cannot come to the office, he/she sets up remote access to the workplace from home PC and performs duties in full;
• Speeds up the process of creating applications;
• Helps control income, expenses and facilitates the process of calculating salaries for employees;
• Creation of reports for specific tasks, etc.

Stay Optimized,

Your DataArt Retail