Archive for December, 2016

No product would reach the end user if it isn’t for the distribution industry. Whether you are a manufacturer, own a brick and mortar store or run an ecommerce business, the key to success is effective distribution of your products. In fact, according to IBISWorld’s Public Storage & Warehousing market research report published in April 2016, the warehousing and storage industry in United States is valued at $22 billion, employing more than 600,000 people. New Jersey alone employed about 370,260 employees in the transportation, logistics and distribution industry in 2015, according to statistics released by New Jersey Department of Labor & Workforce Development.

The good news, however, is that with innovations in technology, the process of managing warehousing and distribution, along with other logistics of a business has become much easier. In fact, the availability of innovative methods like distribution software is rapidly changing the face of the distribution industry.

4 KEY CHANGES IN THE DISTRIBUTION INDUSTRY DUE TO TECHNOLOGY

1. Enhanced Performance

Distribution and logistics have become a part of marketing and are now directly linked to sales. Inventory is continuously moving and customer satisfaction depends on the real-time information regarding the movement of their packages. Distribution software allows just this type of tracking, giving you real time information regarding various parameters of your choice, according to a spokesperson for logistics solution provider Key Software Systems. It allows you to track your shipment and update the customer continuously.

2. Flexibility and Productivity

Technology has reduced the need for manual labor and human intervention. Supply chains use distribution networks to anticipate demand and order volumes, while distributors are able to make decision regarding their services, by being able to predict timing and quantity. This gives them more flexibility and increases productivity, while also reducing operating costs.

3. Better Warehouse Management

Technology has resulted in better use of space in warehouses, as well as improved space and accuracy of delivery. It gives the opportunity to produce great results from small warehouses. All the data and tasks can be easily managed from a central computer, while computer controlled conveyors are also used for loading goods on to the right delivery vehicle.

4. Traffic Management and Delivery

GPS tracking and fleet management software provide managers data regarding vehicle status, traffic status, driver performance, etc., which is used to choose the most effective routes leading to fuel efficiency and lower delivery time.

Technology has changed and will continue to change the way delivery is managed and executed. Declining human intervention, increased streamlining and the wringing of costs from the supply change would continue to be the trends. There remains a lot to be explored in the distribution industry and both logistics managers and software developers will be looking to make the best use of technology to unlock the potential of this industry.

Did you know there are more than 7,500 delivery and parcel companies actively working in the US? These figures published in an article by Market Realist highlight the intensity of competition that carrier companies face today. Moreover, you may be up against a corporate powerhouse with annual revenues of close to $90 billion! With such challenges prevalent in the industry, you need the most powerful courier management solution in order to gain and maintain a competitive edge.

Often companies learn to juggle several balls at the same time and manage to keep them all in the air. Sometimes, they hesitate to step out of their comfort zones and, at times, they don’t want to fix something that does not outwardly seem broken. However, the right courier management solution can result in improved processes, more informed decision making, increased productivity, unparalleled cost savings and better customer satisfaction.

SIGNS THAT YOU NEED AN UPGRADE

1. Low Real-Time Visibility

Carriers work in a distributed environment setting. Therefore, data is generated from multiple locations, systems and departments. Often one needs to make quick, yet informed decisions. In case there’s a time lag between your need for a report and its arrival, your company needs a more efficient solution. Decisions taken without adequate data or with a significant delay can be detrimental to the growth of a carrier. An effective courier management solution would collate and analyse data, making it available whenever you need it.

2. Rising Costs

With the growth complexity of your business, costs may be escalating. There is an urgent need to identify duplication of effort or time invested into activities that do not yield results. Courier management software can help streamline the process to improve productivity and efficiency, resulting is significant cost savings.

3. Frequent Firefighting

Does your company spend a lot of time micro-managing deliveries? Are there too many delays and cancellations? An upgraded courier management software solution can help you track deliveries better, avoid unnecessary delays and send timely information to your team as well as your customers, according to the details of the Xcelerator software by Key Software Systems.

4. Falling Behind Competition

Are your competitors offering more timely delivery solutions, with instant SMS and email notifications? Do they have access to reporting through mobile apps? Do they have shorter invoicing times and more customizable report generation? It’s time your company gains these advantages to stay abreast of competition.

The great news is that the industry is getting bigger and is expected to continue expanding over the foreseeable future. Looking at just B2C ecommerce, sales are expected to grow from $373 billion in 2016 to into over $500 billion by 2020, according to Forrester’s forecast. With courier management software that is powerful, comprehensive, fully-customizable and user-friendly, your company can continue to reap the rewards of a growing market.