Opinion article by Nuno Figueiredo, Board Member, Sales & Marketing, Abaco Consulting, for Logística Moderna (Paper Edition Set / Oct 20 – page 33).
The transport and logistics sector is an important pillar of economic activity, in which it plays an essential role in supporting its clients’ business and providing them with competitive advantages.
But, like other areas of the economy, the logistics sector has been evolving at an accelerated rate, as a result of changes such as globalization, digitalization, the reduction of trade barriers and changes in the operating models of the logistics chain which, consequently , boosted the appearance of greater competition.
Thus, there was an urgent need to develop innovative logistical models, which would only be possible through the integration of appropriate technology. This is, by far, one of the factors that has most driven companies towards their success, through the implementation of new solutions and resources capable of optimizing processes, modernizing sectors and, in general, improving the quality of work and services.
Undoubtedly, the impact of technology on the transport and logistics sector is enormous. We only need to analyze the speed with which the goods circulate at national or even international level and arrive at our homes. However, such management is only possible, thanks to the implementation of Management Softwares, which make it possible to manage all the information related to the company’s logistics, in order to provide essential data to the activities of the Managers of that sector.
In view of this reality, many companies in the sector were encouraged to widen the scope of their service offerings, developing new skills in the logistics chain, with the inherent risks and opportunities. Thus, understanding the importance of implementing a solution that brings organization and fluidity to business processes has become fundamental. After all, we all know about the difficulties that transport companies have daily.
However, this expansion of services usually has, as a consequence, also an increase in costs for the organization. And, faced with choice, many organizations tend to focus on price, rather than service, creating increased pressure on planning, execution and the resources used.
This change is a consequence of a growing perception that an efficient management of the logistics chain is a source of competitive advantages for organizations. However, the most successful are those that are able to understand the real needs of their customers, as well as identify their behavior patterns in purchasing, which allows them to better address those needs with appropriate commercial practices and offer. Given this context, undoubtedly, the logistics chain plays an increasingly important role in implementing these practices and offers.
In this sense, the value proposition of companies in the sector is thus based on three essential pillars: optimization of logistics costs for customers, reduction of the order to delivery cycle and reduction of fixed assets, that is, cost containment. These priorities arise simultaneously with the improvement in service levels, something that necessarily has an impact on operating costs. These changes will then imply that successful companies in the sector will have to ensure that the strategy is suitable for the customer segments, based on knowledge close to their needs and purchasing behavior, as well as the market.
That said, technology can play a key role in responding to these new challenges that are emerging in the sector. Through ERP, the manager starts to monitor vital processes, such as issuing different documents, costs and expenses, fleet control, customer histories, among many other needs. In short, companies and their respective managers now have access to all the information they need in an integrated manner.
It is therefore urgent that organizations, which have not yet started their digital transformation process and who are faced with the need to have effective and capable information systems, do so, in order to allow them to make the best use of the information available to them. optimize planning processes, giving them greater efficiency, and, consequently, control results.