4 Ways Logistics Technology Improves Visibility and Cuts Costs

February 4, 2016 Ken Klaver

Quick and comprehensive. That is exactly what this blog is. ODW Logistics brings in this 5-minute blog 4 excellent area's where modern technology enhances logistics visibility.

It’s hardly revolutionary to say that the right logistics technology is the key to keeping a company’s distribution network and all its complicated parts working efficiently. Yet, many companies still manage their supply chain with manual or disconnected processes that hinder basic decision making and the flow of information.

Here are 4 examples of how technology can improve visibility and reduces costs in your supply chain.

Carrier Selection

A company’s logistics spend is an accumulation of countless daily decisions, with a common one being carrier selection. Without technology, choosing the best carrier to optimize a delivery for both cost and service is time-consuming – and not realistic for any operation shipping more than just a few loads per day. Using a TMS is one example of how technology can provide a logistics team with rates and tools to account for the all the important shipping cost variables.

Inventory Management

Product inventory and materials management are the core of every supply chain. Having the right product in the right place is what keeps operations flowing and store shelves full. Technology, like a WMS, enhances visibility and control by providing real time information on inventory levels and locations.

Reporting and KPI management

Data is available and more usable with technology, especially when it comes to measuring performance. Using data, inefficiencies within a warehouse and throughout the transportation function can be analyzed with the goal of identifying problems and their solution. Better access to data by way of technology also helps the process of establishing KPI’s and managing vendor performance against those goals. 

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Customer Service

Logistics technology is a direct way to improve the quality of service to your customers. With better production planning and transportation optimization through technology, you gain the ability to meet tighter delivery windows and operate with shorter leads times.

The goal for any shipper, clearly, should be to leverage the best available and affordable technology that drives the greatest amount of benefit to their operations. Partnering with the right third party logistics company can provide the best of both worlds - access to best in class technology, at a fraction of the cost.

More ways technology reduces costs:

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