Businesses both big and small spend millions developing and crafting their brand, based on carefully-crafted customer experiences. Reputations in all industries are more quickly lost than built. There is a saying that a dissatisfied customer tells ten people, while a recommendation reaches just one.

And with customer expectations being set high thanks to the convenience of apps and the internet, it’s surprising that many companies seem willing to opt for second-best in their logistics choices. A logistics operator (or logistics function in a larger business) has a significant opportunity, therefore, to differentiate itself from the competition. It does this by providing a service that’s focused on the qualities trusted to it by the brand(s) it works for. At the core of brand values is the end-user’s experience.

Source: Alpega Group

At the heart of the issue are some seemingly simple enough expectations: customers expect trouble-free deliveries and returns; they appreciate transparent tracking of consignments; they rely on clear communications throughout. Increasingly, too, customers want to use companies where green issues like efficiency and low-waste services are employed, and they rightly expect trustworthiness, as few delays as possible, and overall professionalism.

Shippers successful in achieving these requirements can expect business growth, almost by proxy, but as we shall see, the processes and systems required to provide world-class logistics also enable companies to expand operations effortlessly into new markets and territories.

As you might expect from a website dedicated to business technology, we believe the pursuit of business transport excellence is best undertaken by means of digital systems: platforms that connect inventory management, route optimization, real-time tracking, scheduling and more, right along the supply chain. Connecting a logistics company’s existing systems with those of supply chain partners is important for visibility, and automation can remove a huge amount of manual processing by staff.

Basing operations on digital solutions brings additional benefits, too, ones that are never specifically seen by customers but enhance and optimize logistics operations creating indirect benefits for customers. Information accrued from new-generation logistics platforms becomes a resource for analysis, can have machine-learning algorithms applied to it, and informs strategies to further optimize operations.

To borrow from the vocabulary of software developers, the process of improvement becomes iterative; that is, small changes, one after another, build an improving operation. Vendors of technology often claim, wrongly, that their solutions are immediately revolutionary. It’s important to remember that in supply chain technology, change is brought about by logistics professionals using the best tools, deployed in ways that further the business’s goals. Experienced people who work in business transport know that maintaining standards (and, therefore, reputation) is paramount, and the tools at their disposal are just that: the means by which efficiency and customer satisfaction are achieved.

Attaining superior logistics capabilities is tough in 2024 because of the number of moving parts and the complexities of everyday operations right along the supply chain. The best business transport management solutions reflect the number of entities present (like third-party partners) and the variables involved, adopting a modular approach to required capabilities.

At the same time, it’s important to recognize that despite complexity, there must be clear oversight over the entire range of operations. With that, the possibilities of automation and simplification become apparent. What were previously nice-to-haves like, for instance, a real-time, informative customer portal become relatively simple to implement.

At its core, a good business transport software system is data-driven, but is primarily a set of tools used by experienced logistics pros who know their business and are able to enact the business’s strategy: for improved customer experience, for efficiency and lower cost, and to build market differentiation.

Source: Alpega Group

The data grounding of today’s logistics management systems creates possibilities, too. Modeling of potential changes becomes lower-risk, because so-called ‘digital twins’ – the trialing of new ideas and strategies – mean that customers are not unwitting guinea pigs for experimental change. The digitally-fluent company can base its strategies on empirical data from existing operations, data that can be enhanced by third-party information sources and processed by algorithms designed for the industry. Modules that connect supply chain partners’ systems to give wider, deeper knowledge to the logistics operator create the basis on which true customer satisfaction is based. To use some marketing terminology, customers in time can become brand advocates.

When global events and local conditions affect supply chain and sourcing, from regional conflict to labor shortages, the challenges to achieving BTE (Business Transport Excellence) are many. A reactive approach to problems is sometimes unavoidable, well outside the control of the individual. But a proactive approach to choosing and using platforms and systems on which logistics operations take place is possible. Of the best global players in cloud-based, extensible transport management systems is Alpega. In 2024, it launches its “Business Transport Excellence” platform, bringing together all its solutions for shippers and carriers in a single platform. The integrated approach reflects how supply chains work and what they are capable of.

To find out more about Aplega’s offerings and how they can instill differentiating change, contact a representative near you today.

The post Customer experience driving logistics digitally appeared first on TechHQ.

The uphill battle that the supply chain industry faces has been mainstream news for several years now because of its widespread impact. While promises of an AI-facilitated revolution on the horizon continue to be made, the transport and logistics sector is far from out of the woods. With help from experts at leading transport management system provider Alpega, TechHQ takes a look at the top challenges impacting supply chains in 2024.

Source: Alpega Group

Biggest challenges for supply chains in 2024

1. Labor shortages

The logistics industry has been grappling with a labor shortage for a number of years, with around 17 percent of driver positions remaining unfilled in Europe.  An aging workforce – only 9 percent of lorry drivers in the EU are under 30 – lack of interest from young people, and increasing demand for logistics services due to e-commerce have all led to a crisis point, and there are few signs that this will significantly change in the coming year. In fact, data from the International Road Transport Union suggests that driver shortage will double by 2028. Finding the right people, at the right time, at the right price to move goods has become a daunting global challenge in the industry.

2. Stricter environmental regulations

This month, the EU’s Emissions Trading System (EU ETS) cap was extended to cover carbon dioxide emissions from all large ships entering EU ports. The Carbon Border Adjustment Mechanism (CBAM), which places a price on carbon-intensive imported products, is also being phased in, while shippers must now disclose their Scope 3 emissions via the Corporate Sustainability Reporting Directive (CSRD). This is on top of the European Sustainability Reporting Standard (ESRS) demands, which will be in force at the start of 2025. While these restrictions are good for the planet, they put pressure on supply chain operations to adapt swiftly, reconfigure transportation modes, and invest in sustainable practices to reduce carbon footprint.

3. Siloed logistics

Supply chains often fall victim to data silos, isolated pockets of information trapped in internal systems, which complicate access to data. Each sector in the supply chain—such as port facilities, rail networks, or road transporters—tends to operate independently. A lack of integration and investment in organization-wide visibility can impede the flow of information across the supply chain. The effect is data bottlenecks which hinder data analysis and informed decision-making. According to the International Data Corporation, incorrect or siloed data can lead to losing up to 30 percent of a company’s annual revenue.

4. Global crises

Since 2020, the world has witnessed a pandemic, soaring inflation rates, wars in Ukraine and Gaza, and natural disasters that wrought havoc on supply chains. Most recently, attacks on commercial shipping vessels in the Red Sea have caused the price of sending goods worldwide to spike. None of us have a crystal ball, so it is impossible to see what is in store for the coming year. However, the ripple effects of these unprecedented global events continue to be felt across industries and supply chains. Delays, rising freight costs, sourcing difficulties, and labor shortages have left a lasting impact on how businesses operate and navigate uncertainties. They will need to remain agile and prepared to ensure they can withstand shocks and minimize the impact of disruptions.

5. Complexity of global networks

Supplier networks are becoming increasingly complex and have been for some time. The expanding global marketplace, evolving consumer demands, and quest for cost efficiencies have contributed to the proliferation of supplier relationships. A more extensive network brings about more vulnerability to disruption from global events, while managing relationships and ensuring quality standards become progressively difficult.

Without concurrent growth in visibility, the significant costs associated with a complex supply chain are hard to identify and reduce. According to KPMG, two-thirds of global business leaders emphasize increasing visibility into their supply chains to maintain operational stability. Another 2023 study found that improving supply chain visibility is the number one business priority for manufacturing leaders.

The future of transport management

Transport Management Systems (TMS) can help address the various challenges faced by the logistics industry. They offer solutions to labor shortages by automating freight procurement processes, enabling companies to allocate their resources efficiently. A TMS helps enhance workforce productivity, enabling leaner teams to focus on crucial tasks like training the next generation of logistics professionals and future-proofing the industry.

Source: Alpega Group

Stricter environmental regulations are met through TMS capabilities in optimizing routes to reduce carbon emissions, and they address siloed logistics by providing a platform for connected ecosystems and seamless data flow. A TMS helps strategize alternative routes, manage sourcing difficulties, and navigate other challenges, thereby minimizing the impact of disruptions on operations. By centralizing and streamlining supplier relationships, a TMS helps businesses manage complex networks effectively. The improved visibility it offers allows for better risk assessment, quality control, and cost reduction strategies across the supply chain. In fact, 79 percent of supply chain leaders now implement dashboards to provide end-to-end visibility – a 12 percent increase over 2022.

The Alpega solution

Alpega emerges as an instrumental solution in addressing the critical challenges plaguing supply chains in 2024. In the face of labor shortages, Alpega TMS streamlines logistics by offering a comprehensive platform that optimizes transport tenders, automates scheduling, and facilitates cost management. It alleviates the burden of finding suitable personnel by enhancing operational efficiencies through automation, reducing reliance on scarce resources. Alpega TMS is unique in offering access to over 85,000 pre-qualified carriers through its Freight Exchange network.

In response to stricter environmental regulations, Alpega integrates sustainability into supply chain practices, aiding companies in swiftly adapting to carbon emission requirements. Its Real-Time Visibility Network and Transport Cost Management features equip businesses to monitor and control emissions, minimizing their carbon footprints. The Reusable Packaging Management feature enhances packaging processes, reducing waste and promoting the reuse of materials.

Source: Alpega Group

Alpega’s platform actively combats siloed logistics by providing end-to-end functions, like real-time shipment tracking, that ensure seamless flow of information across the supply chain, mitigating data bottlenecks and fostering informed decision-making.

This year, Alpega will launch its ‘Business Transport Excellence’ platform, bringing together all its solutions for both manufacturers and carriers to improve end-to-end visibility. Amid global crises and the complexity of global networks, Alpega offers a scalable and collaborative platform that increases resilience through powerful analytics, collaboration, and shipment visibility.

Alpega TMS stands as a crucial ally for companies aiming to combat challenges, offering a holistic approach to optimizing supply chain operations in a sustainable and efficient manner. Customers benefit from an up to 25 percent reduction in transportation costs and up to 15 percent reduction in IT spending. To discover more about how Alpega TMS can take your business to the next level in 2024, sign up for a free demo.

The post Top five biggest challenges to your logistics in 2024 – and how to tackle them appeared first on TechHQ.