Freight logistics in a sharing economy

31 May by Logistics

Freight logistics in a sharing economy

Freight logistics in a sharing economy

The business world has changed from the process of business-centric to a customer-centric point of view. Similarly, transportation and logistics companies, heavy data handling companies have entered the concept of sharing economy, the smooth working of which requires digitization as an essential aspect in their businesses.

FMS in the era of Sharing Economy

The sharing economy has helped cut transportation costs, optimize warehouse management, handing the staff appropriately, and many more features, especially in the B2B Transportation market. These aspects have helped the companies provide smooth and faster delivery of logistics services to their customers. Some of the ways Transportation and Logistics companies could enhance their customer experience management in a shared economy by adopting a Freight Management System is as follows

The capacity of Trucks: – One of the main issues faced by the road freight forward companies is that they fail to manage the load transporting in their vehicles in a to and fro trip. It usually ends up in increased transportation costs. Thus, it is vital to look for customers seeking transportation services for the same destinations to collaborate the transportation of goods, thus reducing transportation costs, and providing smoother and faster cargo delivery to your customers. With the help of TMS, you can quickly evaluate and comprehend the organized data to make wiser decisions faster and helps you provide more time to concentrate on other customer engagement  activities. 

Staffing: – Lack/organization of the staff in the transportation industry has become an age-old problem. With the staff shortage and improper organization of the present staff and the incoming temporary staff (from various platforms), the process becomes inefficient, and deliveries take longer than the usual time, hence dissatisfying the customers. Also, drivers are the direct contact for your customers. Thus it becomes imperative to analyze their behavior and way of communication to reflect a better image of your company. TMS and IoT services help you organize your staff activities and evaluate their past behaviors to allocate deliveries better and enhance customer services.

Logistics data handling: – In the era of the sharing economy where every industry is related to another and enhances each other’s growth, the accumulation of heavy data is a regular thing. The problem arises when this rich data becomes hard to organize, losing its importance and efficiency. Thus, with TMS, you do not have to worry about managing your data. You get automated reports on your business activities. Hence it becomes easier to evaluate where you lack quality services and what are your robust and competent aspects. It will also help share your data with your other logistics/ business partners for efficient collaborations and improvements.    

Warehouse Management: – With the growing customer demands, the trade of goods has also increased many folds. It also requires vast spaces for storing the goods in transit. In a continent like Africa, where the infrastructure developments are yet to get fully developed, it becomes more critical to manage warehouse management. With various customers looking for facilities to store their goods in transit, it becomes imperative to evaluate several aspects of the storage of goods like available space, time period of storage, extended storage periods, future demands, etc. Handling this heavy data on an excel sheet is an open invitation to errors and massive time involvement. WMS eases your work and does the job of excel in a much better and efficient manner.  

Today’s customer demands have constantly been growing. They want rapid deliveries of their cargo, at lower prices, with maximum transparency in the process. The growing players and hence the competition in the market bring more options for the customers to switch to someone else quickly. Thus, it is crucial to get organized using digital maturity technologies and enhance your competency over the increasing competition. 

Contributed by Nivedita, IIMK PGP student, and summer intern


The Author brings over 30 years of experience in building digital automation and transformation solutions for the supply chain logistics and warehousing industries.

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