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Key Factors to Overcome Logistical Challenges

In today’s world, there is extreme pressure of competitiveness among all the Logistics and Supply Chain industry providers around the globe. Service providers must find a more innovative solution to ensure business sustainability. Embracement into a customer-centric digitized network such as e-commerce, enhancement of customer service approach must be implemented to keep the business moving forward. This will result in a good business partnership with clients and service providers.

Reducing Transportation Costs

As a business organization, the cost is the key recipe for the sustainability of a Logistics and Supply Chain business organization. Benchmarking cost among competitors has to be the utmost priority to sustain a business organization. Apart from cost, there are other areas of concern that need to be addressed. This includes, embarking on a customer-orientated service approach, whereby listening, and asking customer feedback would help to improve a business organization’s growth and increase trust which would promote and maintain customer relationships. Building customer loyalty will ensure business sustainability and attract other potential customers. One of the ways to optimize the fill rate of shipment is by applying LCL (Less Container Load) for a smaller weight of shipment cargo. This utilization is an economical option for the logistics ecosystem. Introducing logistics software into the operation would help an organization to trace the setbacks of an operation and apply an immediate remedy to resolve them. This would create cost savings for the business organization.

Road Mapping Software

Road-mapping software has successfully helped many Logistics and Supply Chain business organizations in delivering the cargo faster to designated locations. Service reliability in logistics and supply chain is the key to ensure commitments to customers are met. By using road mapping software companies could plan and change routes so goods are delivered to the correct destination on the required date. Road-mapping software also assists the company in tracking its cargo movement. Optimization and planning options on the Road mapping software will ease controllers and drivers’ duty to collate and tally orders in a seamless way. In creating an environmentally friendly world, software solutions assist Logistics and Supply Chain business organizations to reduce their carbon footprint by optimizing savings on fuel cost which will be beneficial for both the company and the environment.

An example, Fed Ex had adopted AI (Artificial Intelligence) in their operation logistics system. This eventually developed a great human capability of handling operations in a seamless manner that emphasizes an intelligent vehicle model. Vehicles are being equipped with sensors in monitoring their route. These sensors are for optimizing the route in the event driver decides on a longer or a wrong path. The conscious alarm is a safety feature. Lastly, data gathering enables the company to enhance its capability continuously.


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Roburt A/L Samikkano, DLSM
Roburt Samikkano has substantive experiences in the field of logistics, warehousing, and transportation. He is currently an Operations Manager of a global logistics service provider, and he is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Roburt completed the Diploma in Logistics and Supply Management (DLSM) on September 2021 at SIPMM Institute.
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