Addressing high logistics costs

Logistics management software

logistics management software 1

The overall cost of logistics and transportation operations in Africa remains substantially higher than rest of the world. Though there are lots of factors affecting this surge, most studies point out to the infrastructure and governance issues as the main reason. We can’t deny the fact that logistics issues are neglected generally by the governments though it is a critical component of economic development in their countries.

In Eastern and Southern part of Africa, transportation and freight costs are pretty much on the higher side thanks to the poor road infrastructures, storage facilities, lack of proper management techniques, poor payment procedures etc.  The situation
gets worse in landlocked countries where the transportation costs account to
nearly 3/4th of the total export value.

What we saw

As a logistics ERP software provider in Africa we are well aware of the problems that account to high logistics operational costs in the region. One of the most important issues they face is the efficient usage and management of trucks based on the multiple legs scheduling. In short there was a need of an efficient operational control in overall management procedures. 

Often there is no centralized point to communicate between the branches about truck and consignment status. Another most noteworthy issue is the tracking of empty legs with its kilometers.

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Most of the present fleet management software does not provide real-time fleet tracking, condition monitoring or inventory management in one package. This includes proper checking of the vehicle condition like tyre life capacity, tyre inspection etc. Proper alerting systems are also not offered by such logistics management system to check the expiry of dues, insurance and permits. Details such as demurrage expenses and consignment delays are also not reaching the management levels. Proper validations must be done to ensure the empty containers drop off done properly to avoid the unwanted demurrages to shipping lines.

Effective logistics automation software like Ripples-FMS can solve most of the above mentioned problems in supply-chain and transportation industry. Supply chain management has become even more much transparent after the entry of wireless sensor devices in transportation and logistics sector.  Please let us know if you need a free consultation on how to curb your operational costs in supply chain.