Every stage of the wide logistics process consists of challenges, and the outbound process is no different. Logistics providers are constantly looking for ways to optimize functionalities that enable the seamless flow of products from one point to another, chasing the ultimate goal of ensuring customer satisfaction. After all, a happy customer is an expected return customer.
Technology advancement has played a major role in ensuring the efficient and timely delivery of goods by automating several functions involved in the process, eliminating the scope of manual inefficiencies. Government policies encourage technology adoption in logistics as implementing digital technologies would improve transparency and predictability, thereby reducing the GDP loss of an estimated 13% occurring due to inefficient logistics practices.
Two Pillars of Logistics: Inbound & Outbound
Inbound Logistics: What Are the Key Elements?
The inbound process revolves around the activities related to the incoming materials or goods to the business location or warehouse. The broad features are:
- Material Sourcing
- Purchase Transactions
- Materials Transportation
- Storage Facilities
- Quality Assurance
The Primary Elements of Outbound Logistics
Outbound processes include the management and coordination of all stages in the movement of products from the business’ warehouse or location to the end customer. Order processing, inventory management, packaging, and transportation are the broad categories of the multiple functions involved in delivering the right products to the right customers on a timely basis.
Businesses have been able to save costs and enhance customer satisfaction which is key to gaining a competitive edge in the market. The components that make up the outbound process include:
Handling Inventory
Maintaining an adequate stock of goods is crucial for seamless sales. The warehouse can be the business’ or a third-party possession, and businesses choose their options based on their cost perspective.
Warehousing
An important aspect of outbound logistics revolves around the storage, shifting, and managing of the inventory in the warehouse. Warehouse management initiates from inventory management and incorporates several other warehouse parameters.
Order Control
The activities involved in receiving, processing, and executing customer orders come under the umbrella of order management. A robust order process integration is essential for timely and accurate customer delivery.
Reverse Logistics
The process involves the different activities associated with the return of the delivered goods. The reasons for return can include damaged or defective goods or untimely delivery. The goods can be refurbished, repaired, or liquidated altogether.
How Does Outbound Logistics Build Customer Experience?
A seamless customer experience goes a long way in ensuring a steady pace of business growth. The ways in which outbound processes play a role in it include:
- Achieving delivery perfection through attention to the condition of the goods delivered to the customer
- Ensuring on-time delivery and sharing real-time updates with the customer
Challenges Associated with Traditional Outbound System Management
Businesses that rely on manual outbound processes face several disadvantages:
Lack of Operational Visibility
Transparency is a major issue in all aspects of logistics and tracking the movement of goods through the traditional method of phone calls does not ensure efficiency in the processes. Incidents of theft or other unfair practices remain high, resulting in substantial business losses.
Consignment Tracking Inability
Various en-route issues such as unplanned stops, vehicle breakdowns, improper route planning, and lack of tracking facilities severely impact the timely delivery of goods. The entire production cycle gets affected due to delayed deliveries, causing heavy losses.
Uninformed Decision-Making
Without the power of data, manual management of operations often leads to overstocking or understocking of goods and inadequate demand and supply estimates. These errors in judgment lead to financial losses for businesses.
A seasoned logistics automation service provider helps navigate the challenging avenue of logistics with AI-based solutions.
How is the Fleetx Solution Braving the Outbound Challenges?
Incorporating the power of data and AI, Fleetx has been able to solve the critical outbound logistics issues arising in client operations related to visibility. The solutions include:
Efficient Route Planning
The Fleetx route planning software helps transporters save on their expenses by suggesting efficient routes with the lowest frequencies of tolls in between. This feature plays a significantly important role when there are several touchpoints in the route.
GPS or SIM-Based Vehicle Tracking
The Route Optimization (RO) feature delivers real-time visibility of the vehicles with a live vehicle tracking system. Fleet managers or operators can track live vehicle locations, route progress, and late or missed stops, enhancing the safety of the vehicle and the shipment. Smart geofencing capability sends automated notifications for the vehicles’ arrival or departure at the destination or when there are unusual/ night driving activities.
Maximizing ROI
Transporters can compare planned and actual route-wise performance by accessing individual route histories. Further analysis helps businesses in planning for improved routes and increasing vehicle utilization time, all of which boosts the ROI.
Enhancing Customers’ Trust
With the ready availability of real-time route tracking, automated ETA alerts, and real-time route updates, customers are aware of the shipment progress constantly. This helps in building trust and enhancing customer satisfaction for the services rendered.
Meet Modern-Day Logistics Demands with Fleetx
The outbound logistics functions have progressed way ahead of the traditional approach. To face modern complexities and ensure efficient goods delivery, intelligent strategies such as data-based route planning and live vehicle tracking have become crucial aids.
Customizing logistics management systems has become a norm for Fleetx and our clients have been experiencing the benefits of intelligence-based faster decision-making. Automation intelligence has been able to enhance their operational efficiency, eliminating the risks associated with manual efforts.
