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Transportation and Logistic Management Tips to Improve Your ROI

transportation and logistic management

In 2019, the global logistics and supply chain market boasted a value of $16 billion, and is projected to grow to nearly $38 billion in value by 2027. Needless to say, it’s a growing industry. Taking a scientific approach to logistics is a make-or-break decision for your company. 

Companies that oversee a large fleet of vehicles should learn the cutting-edge strategies, tools, and services that make a difference. 

You’ll keep up with and surpass the competition when these details are addressed.

Is your company’s house in order when it comes to your logistics needs? If not, you’re only a few tips and actions away from changing everything for the better. 

Here are a few fundamentals you should know about when trying to improve your transportation and logistic management.

Always Have Your Mission and End Goals in Mind

Don’t lose the forest for the trees while running your fleet. Outline your overarching mission early in the process and make certain that every logistics decision moves toward those goals. 

Perhaps your company missed profit margins last quarter or last year due to wasted money and resources. Setting a mission to get your overhead costs under control allows you to move forward with clear intentions. 

Create operating procedures that improve your company’s bottom line, and be willing to revisit your goals on a regular basis.

Collect and Use Plenty of Accurate, Helpful Data

Data is an essential tool to improve the transportation and logistics processes at your company. 

Artificial Intelligence (AI) is here to stay in the transportation and logistic management process. It’s responsible for advancements like autonomous vehicles, optimized load and route planning, big data, predictive analysis, and robotics. 

We’re only beginning to scratch the surface of how impactful these advancements will be to the industry. 

Getting your hands on the right data allows you to conduct an ROI analysis that provides insight into how to improve several aspects of your company at once.

Make Provisions for Delays

Understanding that mishaps and mistakes will occur is one of the most critical transportation management tips you can embrace. 

Delays cost you time and money, but they’re an inevitable cost of doing business. Rather than dreading delays, proactively create plans and policies that address them head-on. 

Factor in the potential for delays when calculating shipping and delivery times. Log any delay instance that occurs so that you know what went wrong and how to fix it. This means casting a discerning eye on scheduling work shifts, loading, unloading, and other factors.

Put Some Cloud Solutions Into Play

Cloud computing is essential to today’s transportation and logistic management needs. Digital storage lets you keep unlimited archives of shipping logs, contracts,  and other valuable data. 

Using cloud-based logistics Software as a Service (SaaS) improves your collaboration and speeds up all your processes. It allows your company to reduce its overhead costs while getting more work done.

Prioritize Training Everyone in Your Business

Nothing says return on investment (ROI) like excellent training and education! 

When every branch of your supply chain is trained to the highest level, it cuts down on mistakes and makes your teams far more productive. Safety training is one of the most critical areas of focus. 

A company that operates safer will have fewer mistakes, and you’ll also avoid costly worker’s compensation cases or missed time. Invest in training and continued education on the front-end so that it pays off on the back-end, for years to come.

Invest in a Transportation Management System

A quality transportation management system is a gamechanger for all of your logistics management and transportation needs. 

These software systems dictate virtually every aspect of your warehouse or fulfillment center’s order processing and transportation. Your company’s planning and execution will improve, allowing you to get your goods into the hands of customers quickly and effortlessly. 

Implementing a transportation management system cuts costs for both your company and the customer, improves visibility, adds convenience to freight tracking, optimizes driver routes, enhances customer service, and so much more. 

Reduce Idle Time

Dealing with long driver idle times can have a major impact on profitability. Head this issue off at the pass and pre-emptively maintain your fleet to a high standard.

Think creatively about how your team can track and incentivize less idle time month-over-month. One key factor that plays into this can be load management. If a truck is properly loaded for quick and efficient delivery, idle time can be reduced greatly because it takes teams less time to unload.

Having a proper fleet management plan that encourages drivers to reduce overall idle times can prevent fuel waste and reduce fuel expenses. Sometimes drivers may wait longer than necessary after a delivery has been unloaded, or they may be required to wait until the client is readily available to unload the delivery. By having quick and effective communication established with both the drivers and the customers, idle times can be greatly reduced.

As an added benefit, less idle time can also preserve the life of vehicle engines and mitigate any expensive vehicle maintenance that is needed.

When your fleet is maintained and loads are planned in advance, drivers experience less idle times, your team experiences lower expenses, and your company can experience greater profits.

Set and Measure Goals to Check Off

Setting and checking off goals should serve as the foundation of your company’s logistics and transportation management strategy.

Make your goals ambitious but achievable, and schedule regular meetings to know where you stand. Your company will make exponential leaps, one achieved goal at a time, so make sure you’re putting thought and research into each one that you set.

Make the Best Transportation and Logistic Management Decisions

Following the points above will give you the ROI that you need from your business’ transportation and logistic management team. 

These tips are actionable for any company with logistics needs, so start putting them to use today. We’re happy to help you out with any part of your logistics or transportation needs. 

Headlight Solutions can take your company’s logistics to the next level. To get answers to your questions or request a demo, contact us on our site, or give us a call at (855) 596-1975.