In the ever-evolving landscape of modern business, supply chain disruptions have become a recurrent challenge that freight companies across the globe grapple with. Freight tracking software might be one way to fix these issues. According to ABS's Business Conditions and Sentiments survey in February 2022, it was found that a massive 37% of businesses reported having supply chain issues.
Even though this is a slight decrease compared to the previous month’s 47%, it still highlights that something needs to be done. This continues to show us how volatile and ever-changing the global supply chain is. It’s clear that people need a new way to ensure steady operations in this fast-paced world. Experts suggest leverageing freight technology to address supply chain challenges and improve transparency.
Can Freight Forwarding Software Reduce Disruptions in the Supply Chain?
Supply chain disruptions have become much more than just an annoyance after COVID-19. They’re now critical for businesses of all shapes and sizes. That same ABS survey showed that the most common issue freight companies face is delivery delays both domestically and internationally. These delays that might be resolved using logistic software affected a staggering 88% of everyone who responded to the survey. It doesn’t stop there either, as these delays have ripple effects that impact partners, stakeholders, and customers too.
Increased prices due to supply constraints and transportation costs have become significant challenges. This is impacting about 75% of logistic companies. Problems like these can have serious consequences, such as huge financial losses and the disruption of operations. Freight tracking software offers sustainable solutions to address these challenges and enhance supply chain efficiency.
How Freight Businesses Can Improve Transparency with Freight Technology
Transparency and visibility are emerging as the silver bullets that can help freight businesses navigate these turbulent waters successfully. Freight businesses must adopt proactive strategies that will minimize the change in their operations. One of the best ways to do this is by using freight forwarding software. They offer real-time visibility into the entire supply chain. By having that, companies are able to make informed decisions and anticipate any potential bottlenecks or delays.
According to a survey done by the ABS, 88% of freight businesses dealing with a supply chain disruption had an increase in time when receiving products from suppliers. This period can create far-reaching consequences beyond just affecting a company’s bottom line but also damaging relationships with customers. Freight tracking software helps businesses closely monitor each step in the supply chain.
Identifying Delays in Real-Time
Whenever there is a delay in the line of supply, companies that use freight technology have the power to know. This gives them an opportunity to act fast. You can depend on reliable freight tracking software that tracks every single phase from origin to destination and quickly finds where things get bottlenecked. At this point, businesses can take preventive measures and avoid delayed shipments, moving from reacting to disruptions to actively managing them.
Increasing Supply Chain Efficiency
Besides avoiding delays alone, transparent supply chains are widely recognized for improving how efficient workflows are overall. Logistic software gives great visibility into the movement of goods and allows companies to optimize their operations. By cutting redundant processes and making data-driven decisions, it becomes much easier to streamline any supply chain. And even though we don’t think about it often, efficiency saves time and resources, which ultimately results in a better customer experience.
Minimizing Operational Costs
Supply chain mishaps always end up costing more money than they should. This is because businesses are put in situations where they need to pay for expedited shipping or storage costs and lost revenue from late deliveries. Freight forwarding software creates a way for them to identify these issues early on when it’s much easier (and cheaper) to fix them. When using this software, it becomes much easier for companies to allocate resources and manage costs.
Building Trust and Collaboration
Transparency is the key to great relationships with your clients. The more a customer knows, the more you gain trust. It’s like a friendly relationship when both sides have access to all their data and see what’s going on in real-time with the help of logistics software. When those two things are combined, it leads to more efficient work. Ultimately, this creates not only better relationships with your suppliers and partners but also with customers.
Ensuring Greater Sustainability
Supply chains are responsible for so much damage to the environment. With transparency comes responsibility. Freight forwarding software allows companies to find out what’s causing harm to their surroundings and make changes to fix that. Minimizing the carbon footprint and reducing fuel usage goes hand in hand. Sustainable measures can create a positive impact on the world as well as a company's brand reputation.
Types of Freight Forwarding Software
Freight forwarding software comes in various forms, each tailored to meet the unique needs of different businesses. Here are four key types of logistics software:
Enterprise Resource Planning (ERP) Software
Enterprise resource planning software (ERP) is a fancy name for logistics software that combines all of your business tools into one suite. Modules include supply chain management, accounting, manufacturing, and human resources. Because of its complexity, big businesses use this freight forwarding software since it provides them with an overall look at operations and makes it easier to manage and optimize supply chain processes.
Demand Planning Software
This type of freight forwarding software is a critical tool that businesses need in their arsenal. It helps them forecast product and service demand accurately. With this data, they’re able to optimize inventory levels, schedule production more efficiently, reduce lead times, and cut costs. All of these things come together to create enhanced customer satisfaction.
Warehouse Management Systems (WMS)
This freight technology is made to manage and optimize warehouse operations. While it may seem basic on the surface level, it’s an essential tool for any business with lots of inventory. It helps them track inventory levels and automate picking and packing processes. An underrated feature is its ability to optimize shipping within a warehouse.
Transportation Management Systems (TMS)
This freight tracking software is built for managing and optimizing transportation operations. This includes helping businesses plan out their shipments, selecting carriers, and tracking packages in real-time. Freight forwarding software holds the most value when used by companies with extensive transportation needs because it ensures efficient and cost-effective movement of goods.
Supplier Relationship Management (SRM) Software
SRM software has one purpose: to help manage relationships with suppliers. Features include tracking supplier performance, negotiating contracts, and collaborating on product development. With this freight forwarding software, it’s easier to build strong partnerships with suppliers, which in turn creates smoother supply chains that are more reliable.
In today's world of interconnected markets and global commerce, it’s easier to feel like supply chains are perfect. However, they have become an ever-present challenge. The ABS survey conducted in February 2022 highlights that a need for businesses to fix their supply chain disruptors exists. While this might seem formidable, businesses can turn them into growth and improvement opportunities. One way of doing this is through embracing freight forwarding software and prioritizing transparency and visibility. By doing so, companies can build resilient supply chains that not only weather disruptions but also thrive in a constantly changing business environment.