Sales and Fulfillment
An in-depth look at transportation and logistics management
Efficient transportation and logistics management are the backbone of a successful supply chain. To stay competitive in a changing landscape, organisations need sophisticated strategies to streamline operations and navigate the complexities. A managed logistics approach like SnF (Ship and Forget) is becoming more popular, allowing businesses to delegate logistical operations to a dedicated team and focus on core activities.
This article explores logistics management, transportation planning, and key components of transportation logistics.
The role of transportation in logistics management
Transportation planning focuses on designing efficient routes, selecting carriers, and ensuring timely deliveries to meet demand while reducing costs. Factors like fuel expenses, route optimisation, vehicle maintenance, and compliance are essential to transportation logistics. Effective management ensures timely, cost-efficient deliveries.
Managed logistics solutions, like SnF, go further by outsourcing these tasks to specialists, providing expert handling of complex logistics operations. In the SnF model, external partners manage logistics using advanced analytics, AI, and digital tools to optimise routes, reduce lead times, and enhance supply chain efficiency.
Driving transformation in transportation planning with SnF
The SnF model provides end-to-end solutions from warehousing to last-mile delivery, enhancing supply chain productivity and operational efficiency. Key components of this transformation include:
- Route optimisation and last-mile efficiency
- Carrier selection and cost management
- Inventory and demand alignment
- Real-time tracking and data-driven decisions
- Regulatory compliance and sustainability
SnF leverages advanced analytics to optimise transportation routes, reducing travel time and fuel costs and improving delivery efficiency. Last-mile delivery, which accounts for 41% of delivery costs, is streamlined to further enhance cost-effectiveness and customer satisfaction.
By selecting reliable carriers based on cost and service level, SnF ensures timely deliveries while optimising transportation costs. With logistics costs making up nearly 80% of supply chain expenses, data-driven cost management helps businesses reduce inefficiencies across the board.
SnF ensures precise inventory synchronisation across multiple locations, preventing bottlenecks and improving stock levels. Predictive analytics enhance demand forecasting, reducing inventory imbalances that can lead to stock shortages or excess.
SnF integrates real-time tracking and analytics, providing full visibility of shipments. This data enables businesses to make informed, timely decisions. According to Gartner, 25% of supply chain decisions are expected to be driven by intelligent edge ecosystems by 2025.
Managed logistics solutions, such as SnF, offer businesses specialised expertise to manage complex logistics operations. Through advanced analytics, AI, and digital tools, the SnF model enhances supply chain efficiency by optimising routes, reducing lead times, and ensuring seamless operations, which translates to reduced costs and improved performance.
The future of logistics and transportation management: Embracing technology
Labour shortages, escalating labour costs, and the lingering effects of COVID-19 have increased the demand for flexible automation in logistics operations. To address these challenges, managed logistics providers are integrating advanced technologies like the Internet of Things (IoT) for real-time tracking, blockchain for secure transactions, and machine learning (ML) to optimise transportation planning and enhance logistics efficiency.
As technology continues to evolve, key trends to watch for in the future include:
Autonomous deliveries
An emerging trend is the use of drones and self-driving vehicles for last-mile delivery. Autonomous delivery vehicles could cut last-mile delivery costs by 40%, transforming how goods are delivered to consumers.
5G connectivity
The deployment of 5G networks will enhance the speed and reliability of communication between IoT devices, boosting real-time tracking and data-sharing capabilities. This will further enhance logistics efficiency, particularly in crowded urban areas.
Advanced robotics
The rise of collaborative robots (cobots) in warehouses working alongside human operators will continue to improve the speed and accuracy of picking and packing processes. By 2026, 75% of large enterprises are likely to use smart intralogistics robots, blending advanced cyber-physical automation for optimised warehouse operations.5
Blockchain and smart contracts
Blockchain’s role in logistics will expand, with more companies adopting smart contracts to automate and secure transactions, reducing administrative overhead and improving contract compliance.
With the continued advancement of technology and the adoption of data-driven insights, the logistics and transportation management industry is well-equipped to tackle future challenges.
How can Infosys BPM help with logistics and transportation management?
Infosys BPM provides managed logistics services designed to reduce transport costs, enhance delivery performance, and ensure regulatory compliance. Leveraging a global talent pool and advanced technologies such as AI and RPA, these services enable businesses to optimise logistics, streamline operations, and increase operational flexibility. This approach drives efficiency while fostering continuous improvement across the supply chain.
For organisations seeking cost-effective, high-performance logistics solutions, Infosys BPM offers expertise to build a smarter, more efficient supply chain.