The concept of efficiency defines the fact of achieving the goals that a company sets for itself using the least amount of resources possible. It relates the material and human resources used to the result achieved, so that the fewer resources needed to perform a job, the more efficient it is. Aaron Rodriguez, an expert in proper business optimization, explains why logistics operations perform better when efficiency is factored into the equation.
Efficient logistics is one that ensures that products reach their destination using as little fuel as possible, using fewer working hours, reducing pollution from operations, and so on. Undoubtedly, technology is an indisputable ally in the design of efficient procedures. When properly chosen and accompanied by good planning, management and administration practices, it is possible to increase efficiency considerably.
Rodriguez says, “One of the transformations that technology facilitates for businesses is the possibility of automating processes and facilitating management, to increase productivity and efficiency of operations. The development of innovative solutions, such as cloud computing, big data, artificial intelligence, internet of things, machine learning, and blockchain favored the birth of a new era, that of logistics 4.0, with several associated advantages.”
First, there is a major emphasis on stock control and loss reduction. By choosing the right software for each business, it is possible to achieve a reduction in stock losses, avoid rework resulting from defects in goods, and eliminate misplacements.
The business strategy receives an important improvement. The correct use of available data allows managers to modernize logistics management, eliminating waste and optimizing time without sacrificing quality.
It is known that transportation can have significant overhead, but that could also be a thing of the past. By improving transportation efficiency and eliminating bureaucracy, the process becomes more agile and cheaper, enabling companies to stand out from the competition and increase their market share.
And finally, customer satisfaction can be achieved more successfully. “Customers are increasingly demanding in terms of delivery times and are looking for simplicity in processes, real-time tracking of their purchases, reduction of failures, and more competitive prices. Companies that fail to meet these demands have no prospect,” says Rodriguez.
On the other hand, it is important to understand what a Transportation Management System (TMS) is. This logistics platform allows users to manage and optimize the daily operations of their transportation fleets. It provides outstanding benefits, such as the ability to improve efficiency, reduce costs, obtain real-time information on supply chain processes and improve customer service.
This tool collects a large amount of information related to logistics operations that, when analyzed using intelligent systems, has the potential to provide very useful data for informed decision-making and more effective strategies.
“A TMS can become a great tool for our businesses as it allows us to plan routes more efficiently, execute operations more easily, track the fleet in real-time, in sync with other systems and access advanced reports and statistics,” Rodriguez explains.
Another effective tool for managing business processes is Enterprise Resources Planning, usually known by its acronym “ERP.” This is software that helps business management and allows the automation of functions related to technology, services, and human resources.
In general, it integrates into a single database and user interface all facets of an operation: product planning, development, manufacturing, sales, and marketing. In this way, it enables the administration of activities such as accounting, purchasing, project management, risk management, procurement, and other supply chain operations, with the optimization of resources.