Efficient transport management ensures timely deliveries and customer satisfaction in the fast-paced logistics landscape.
In fact, the majority of adults today view 3-day delivery as standard, with nearly a third exрeсting same-day fulfillment. When рolled, 85% said a рoor delivery exрerienсe would рrevent them ordering from an online retailer again.
Nevertheless, 32% of firms have not moved away from labor-intensive manual processes that inadvertently inflate transport management system costs. Also, last-mile delivery can account for a staggering 23% to 53% of total delivery costs , making cost management strategies a critical imperative.
How low visibility drives up transport management costs
Manual tracking via spreadsheets and emails significantly escalates transport management system costs in logistics. As shipment volumes expand, the reliance on fragmented systems complicates real-time data consolidation. This leads to improvements in crucial areas like optimized routing, customer satisfaction, and managing driver performance.
Let’s understand the impact of low visibility in more detail.
Optimized routing
The absence of integrated visibility solutions directly affects route planning, compelling the use of longer, inefficient paths. Research shows that 24% of direct carbon emissions come from fuel combustion. This inefficiency in route optimization inflates transport management system costs through heightened fuel expenses. Every year, long-haul trucks burn through 800 million gallons of diesel during idle times. This adds up to 1,800 hours of wasted energy.
Customer satisfaction
A lack of precise visibility into shipment statuses delays delivery estimates, diminishing customer satisfaction levels. The fallout from inaccurate delivery schedules can extend beyond single transactions. It threatens business relationships and elevates transport management system costs due to a negative impact on customer retention and brand integrity loss.
Driver performance management
Assessing driver performance becomes a monumental challenge without access to timely and accurate data. This limitation obstructs efforts to optimize fuel consumption and operational efficiency, underscoring the significance of advanced visibility in effectively maintaining transport management system costs.
Hidden Costs of Manual Processes
Carrier selection and quote management
It takes up a sizeable chunk of a fleet manager's day—on average, up to 43% of core working hours. Imagine if this could be automated. Managers could do additional strategic thinking or focus more on their team or clients.
Freight bill auditing and error correction:
Did you know that invoice errors between 15-66% get rejected due to manual errors? This brings up a waste of $700 million each year in the pockets of the freighting industry. A manager sorting out these errors adds up and diverts the focus from increasing the operational efficiency and profitability of the company.
Manual data entry and reconciliation
The annual cost of human errors resonating between the US and the UK averages around $435 per employee. In total, this leads to a staggering figure of $18 billion per country each year. This results in the piling of work hours and costs.
How Do These Factors Impact Logistics Teams?
Increased risk of human error and inaccurate data
Firstly, the risk of human errors and the resulting inaccurate data is too great. We're not just talking about the wrong numbers here, but those inconsistencies lead to flawed budgets. Also, incorrect inventory numbers lead to havoc on your operations.
Reduced productivity for logistics teams
Secondly, your team's productivity takes a serious hit when they are engrossed in tasks that can be streamlined to greater effect. Thus adding value to your operations by improving customer service and spearheading sales initiatives.
Delayed payments and invoicing issues
Lastly, delayed invoices and payments create a cascade of issues, from fostering customer dissatisfaction to curbing your company's growth. They disrupt cash flow and complicate fiscal management, which, over time, impacts financial stability and increases transport management system costs. Streamlining processes is essential for better efficiency.
How Fastlane saves you money
Did you know the fleet management market is projected to surge from $23.67 billion to $79.82 billion by 2030 ? It does this by delivering cost-saving automated logistics solutions. Let's find out how Fastlane curbs your transport management system cost in detail:
Route optimization for cost efficiency
Fastlane's route optimization uses AI to predict the most optimized route. This includes multiple addresses, shipping volume, fleet or driver availability, and fuel efficiency with technological precision. Thus, it ensures that drivers navigate the most efficient paths. Fastlane contributes to the environment.
Fastlane's multistop route optimization uses complex algorithms to give variable options to provide the most efficient route. This helps reduce carbon emissions by 37.6% as the software helps to increase mileage.
Real-time tracking for shipment visibility
With Fastlane's tracking system, customers and business operators gain peace of mind through complete shipment visibility. This level of care in monitoring ensures accountability for every package.
Automated workflows for streamlined operations
Embracing automation, Fastlane streamlines complex logistics tasks that once overwhelmed human workers. This shift from manual handling to automated precision reduces work stress and errors while promoting a balanced workload. In doing this, Fastlane boosts efficiency and fosters a more positive work environment. Ultimately, fleet managers can focus on optimizing the company's fleet efficiency and simplifying delivery.
Save Your Transport Management Costs with Fastlane
Manual transport management hides frustrating costs: lost time, errors, and fuel waste. Get started with as low as €150 per month and redefine your transport management system cost with improved savings and efficiency. Consider Fastlane's transformative impact on your operations.
Embrace a smarter, cost-effective approach to elevate your business. Explore Fastlane today.
Talk to our team and see the difference firsthand.
