Transport logistics automation: how the operations management service works

Logistics is a complex system where mistakes are expensive. Tracking shipments, managing inventory, and coordinating transport companies all require resources and time. Manual process handling leads to delays and errors that cost a company money and customers. In this article, we will look at which logistics processes can be automated, which technologies to use for that, and how it will affect business efficiency.

Imagine a company that supplies fresh products to cafes and restaurants. Because of the short shelf life, customers expect fast delivery.

But logistics is built manually, which leads to problems: - orders are processed slowly: - managers receive them through messengers, social networks, and phone calls, then enter them into Excel spreadsheets; - fuel costs are rising: - drivers receive a list of addresses and plan routes themselves, but do not always choose the best options based on weather and traffic conditions; - supply chains are tracked manually:- the customer has to keep calling the company to find out where the order is, and the manager cannot give a direct answer because they first need to contact the driver; - document workflows are handled inefficiently: - managers print and sign delivery notes manually and then hand them to drivers, which slows down logistics and does not eliminate errors; - customers switch to competitors: cafes and restaurants are dissatisfied with delivery delays and choose more reliable options.

Statistics show that these problems affect the entire logistics sector. According to McKinsey, the three main pain points in transportation are cost management, route optimization, and productivity improvement.

Automation software will be useful for everyone who works with logistics processes.

Let's look at examples: - manufacturers- they will optimize supply chains and be able to control warehouse stock; - online stores and marketplaces- they will streamline transport routes, shorten delivery times, and increase customer satisfaction; - distributors- they will start tracking orders centrally and reduce fuel costs and excess storage expenses; - transport companies - they will be able to manage their fleet more efficiently by tracking vehicle locations, analyzing routes, and saving on fuel.

There are software solutions for transport companies and other market participants that help manage all logistics processes: routes, warehouses, and document workflows. At first, these were traditional algorithm-based IT solutions, but the introduction of AI has significantly expanded their capabilities. Let us look at the main functions and principles of transport software.

> KT.Team case: a service for selecting transport companies for a marketplace > What was the problem: managers selected transport solutions manually, taking into account many factors such as shipping schedules, warehouse and driver shifts, days off, and more.

As a result, the delivery cost of one order was 20% of its value. > What they wanted to do: create a service that would automatically choose the best transport company for a specific order based on rates, SLA, and other metrics. > What KT.Team did: they created a separate service for logistics specialists that communicates directly with transport companies and passes only the final decision to the marketplace on who will

to deliver the order and which pickup points are available. > Result: the client no longer had to configure logistics manually and received a separate service that analyzes delivery conditions on its own and passes back a ready-made decision for each specific order.

Several factors affect the cost of automation: - company size - small businesses can use cloud solutions, while large enterprises need powerful enterprise systems; - volume of logistics operations- the more orders, routes, and warehouses there are, the more complex the service and the more expensive the implementation; - number of users - the price depends on the number of employees who will use the system; - Functionality - if the service needs to be integrated, for example with CRM or ERP systems, the cost will increase.

In addition to business and system specifics, any transport software implementation will require extra costs, for example for licensing, employee training, equipment purchases, and technical support.

Let's sum up why manual logistics processes should be abandoned.

Logistics automation: - saves employees time: there is no need to process orders manually, plan routes, or monitor warehouse operations; - reduces business costs: - the system plans driver and courier movement based on weather and current traffic conditions, which reduces mileage and saves fuel; - minimizes document workflow errors: - invoices, delivery notes, and customs documents are generated automatically; - speeds up order processing: OMS automatically processes incoming orders, assigns them to warehouses, and passes them to delivery; - allows control of every stage of logistics: GPS monitoring tracks cargo location and helps predict arrival time to the customer.