How Custom Software Gives Logistics Companies A Competitive Edge
To maximize capital, a logistics company has to overcome a number of challenges including rising fuel and labor costs, intricate operations, myriad channel partnerships and interactions, and data obscured by the complexity of supply chains. Those businesses that choose to invest in custom software gain a leading-edge over the competition and improve profitability through improved operations.
Recover supply chain visibility
Geodis’ worldwide supply chain survey identified supply chain visibility as a top priority for companies. However, only 6% of the respondents said they had full visibility within their supply chains. Custom software equips logistics companies to retrieve real-time, omnichannel data on requests, transactions, workflow, and other key business indicators. This transparency, in turn, fosters across-the-board optimization of operations, the ability to identify and mitigate risks to the supply chain, and analytics-driven insights for improving consumer satisfaction.
Optimize transportation performance
With fuel and labor costs rising and a continuing driver shortage, logistics companies are being forced to find ways to streamline transportation performance. Enhanced supply chain analytics provides logistics companies with the means to measure and improve transportation performance. Using this data, businesses can optimize efficiencies and make the most of capital investments.
Improve business processes
In their analysis of third-party logistics organizations, The Hackett Group noted disparate processes across functions and geographies as a serious challenge for supply chain organizations. Going all digital allows logistics companies to drill down into data using custom analytics to identify where problems arise, to dig into what caused them, to prescribe actions for improving these areas, and to predict how changes might affect processes.
Illuminate inventory management
A 2015 study by GS1 US and Auburn University’s RFID Lab found that the average inventory accuracy threshold for retail operations is only 63%. Inventory visibility is critical in terms of understanding demand patterns and accurately forecasting future demands and potential risks. A custom software solution improves across-the-board transparency, empowering logistics companies to accurately track, manage, analyze, and optimize inventories.
Expand to new markets
In an article for Supply Chain Dive, Rich Weissman, past president of the Institute for Supply Management – Greater Boston, noted that technology is leveling the playing field for smaller logistics companies. Whereas many larger corporations rely on outdated legacy software, smaller startups are embracing the cost- and labor-saving advantages of pioneering custom software to make inroads into markets that would have been closed to all but the largest firms in the past. Logistics companies of all sizes can leverage data-backed analytics to assess customer information, business volumes, and global trends in order to mitigate the risks associated with expanding into new markets.
Gain a competitive advantage
Custom software is the competitive advantage that turns logistics companies into supply chain leaders. 3PL and 4PL companies that invest in digitizing the supply chain are already leading their industry, and the software experts at Antares are helping. By developing software to the exact specifications of logistics companies, we empower companies to recover supply chain visibility, optimize transportation performance, improve business processes, illuminate inventory management, and expand into new markets with less risk.
To learn more about the opportunities created by custom software, contact our technical team today.