Situation of transport companies.
The transport sector has experienced profound
changes in recent years as a result of important social factors such as the
Covid-19 pandemic or the crisis derived from the war in Ukraine since 2022. New
consumer habits and forms of work have emerged that have forced transport
companies to adapt their activity in response to the new market demands.
The sector has been able to overcome obstacles,
experiencing growth in the last two years, a trend that continues in 2023.
According to a study carried out by the company Transport Intelligence
“activity will continue to grow, but at a slower
pace than in 2022.” Forecasts estimate a 2.1% growth in international
transportation, largely driven by electronic commerce.
We are talking about an activity framed in a new
scenario in which many challenges arise, but also many opportunities. A
scenario undoubtedly marked by the digitalization of the sector.
Accelerating the technological transformation
process is necessary to face increasingly concentrated competition.
One of the trends derived from the problems that
the sector has faced in recent years is the generalization of absorption or
merger processes between companies. We are talking about a fight in which the
companies that best adapt to technological innovations and new automation
systems will survive, counting on qualified personnel to develop this new way
of working. Optimize resources to achieve greater profitability.
What do we understand by route
optimization?
In this sense, we address the achievement
of profitability through two aspects; on the one hand, the optimization of
human resources and, on the other, the optimization of processes, automation.
Optimizing human resources means creating a
qualified workforce, in which all its members are capable of effectively
managing technological tools regardless of their position within the work
chain. Digitalization is a process that affects all stages of logistics
activity.
But we could not talk about making the most
of resources within a transport company without talking about route
optimization, understanding this as the process based on designing the most
efficient route for the transport of goods. By optimizing a route, the aim is
to improve the efficiency of logistics processes so that the supply chain is
more profitable, minimizing costs and delivery times.
Benefits of route optimization:
Route optimization makes it easier to find the most
efficient route, which translates into a reduction in operating costs (around
30%) and time savings (up to 20% in delivery times).
Trip planning is the key to route optimization. It
is based on exhaustive knowledge of the factors involved, that is, fleet
management and status, road status, human resources status and management,
loading and unloading times, document management...
The knowledge and analysis of this data are,
therefore, the basis for achieving optimization, with which we will also
achieve a series of added values ??such as an improvement in customer service, greater flexibility to quickly
adapt to changes in demand, reduction of environmental impact by minimizing the
carbon footprint...
How can we optimize routes?
This data can be provided by tools that
offer information to increase efficiency and effectiveness. Process automation
brings with it the achievement of exhaustive and competitive information.
What tool can we use in transportation to
automate processes, obtaining reliable data to work with in order to optimize
routes?
Here, transportation management software
comes into action
Software can significantly increase the
efficiency and productivity of the company thanks to resource management,
document management, human resources, and much more.
With its help, fleet routes can be
optimized, something that not only reduces travel times but also fuel costs.
Human resources management also contributes to cost savings since work hours,
rest times, etc. can be tracked, which translates into increased productivity
and legal compliance.
Having access to accurate, real-time data
improves decision-making as it increases the capacity for action and response.
Access to detailed reports on various areas of a transportation company, from
operation costs to route efficiency, allows you to identify areas of
improvement to work on.
But in addition to economic and time
savings, or access to accurate and relevant information for decision-making,
the use of specialized software contributes, among other things, to reducing
errors inherent in data management. Automating administrative tasks reduces the
possibility of human error, as well as gives you the opportunity to correct any
errors before they become a major problem.
Good internal management is always
reflected in customer perception, that is, a job well done helps maintain a
positive reputation. Customers can have access to information relevant to them
(such as knowing the location of their shipments in real time), there is
greater transparency and therefore greater satisfaction.
Finally, management software contributes to
the scalability of a business since an increase in the number of vehicles,
drivers or routes can be easily managed without having to proportionally
increase the administrative team.
Some management software is scalable,
allowing features to be added or removed as needed. In this way, the necessary
tools for effective management are always available. In this way we see how
investing and working on management software within a transport company is a
necessary action, firstly, to remain and grow in a market marked by
digitalization, and secondly to make resources profitable by increasing the
competitiveness.
