Logistics play a crucial role in the trucking industry. Not only does customers are looking for trucking companies that provide an excellent team of truck drivers and with reliable trucking facilities, they are also using logistics as part of the criteria when considering a trucking company to trust their cargo with. Logistics involves the organization and management of goods and materials, physical inventory, planning and documentation and utilizing the resources available to enhance the efficiency of service delivery. Transportation logistics are used to streamline trucking services and business operation smoothly for the timely delivery of goods and to meet the demand and supply cycles.
Two areas of business logistics that benefits the trucking business
Warehousing is the foundation of any logistics-based companies. It keeps at least 75% of the company’s assets and production. Raw materials, as well as finished products, will occupy this space and the integrated planning of spaces and quantity should be carefully planned. Before any item is procured for delivery, or picked up for storing, there should be a concrete and carefully planned spacing inside a warehouse to accommodate them, otherwise trucking services will deem ineffective and incompetent. Logistic solutions such as providing space for raw materials, finished goods, goods for delivery and for disposal should be very accurate and clearly assigned.
The other area of logistics is considered the abstract part wherein planning, communication and documentations are processed. If you noticed how some of the big trucking companies work, there is less aggravation on their part as schedules and timelines are set even before deliveries are dispatched to take the road. In fact, they can immediately tell a customer the day and time a parcel is available for pick up even before you sign the shipping agreement. These are just a few things an excellent logistics can benefit your business.
Logistic’s perspective on business
There are two types of transportation logistics that are used in the trucking business. The outbound logistics involve delivering goods from the company to the clients. An abstract requirement includes the schedule Estimated Time of Arrival (ETA) and proper documentation such as Delivery Receipts (DR), Invoices and Certificate of Compliance. The inbound logistics, on the other hand, are those purchased from third party sources and are stored as raw materials for production or stocks.
In so far as logistic warehouse is concerned, production planning is an integral part and process that makes sure that the goods are properly stored. This why a Purchase Order (PO) should also include delivery schedules in order to plan and manage production accordingly, as well as allocate a space for a certain product at a certain time. Data management is apparently important in the trucking business and data software offers a logistics solution that helps trucking companies store client information, manage service delivery schedule, determine truck maintenance time, locate cargo and delivery destinations, and organize the other intricate operational services of a trucking company.
Logistics solutions for trucking companies
Trucking companies have to operate with flexibility and agility to make their business more responsive in meeting their client’s needs. Owning transportation logistics allows their organizational services to deliver an efficient operation to the stakeholders. It also helps them comply with the higher standard requirement for a professional trucking company. The storage of cargo and their safe delivery to the points of destinations are monitored by the personnel while cutting down costs in the distribution process.Delivery schedules are processed smoothly without compromising the availability of trucks and truck drivers. With timely and safe delivery of goods, trucking companies can enhance its services and profitability over time. Using logistic solutions provides for an organized streamlining process of your human resource, routine plans, fleet availability and maintenance, and data management needed for keeping your operation agile, transparent and efficient. The employment of logistics solution makes the trucking business highly operational with less manpower required and less expensive technology to use as utility in keeping track of the overall business operations.
Outsourcing and third party logistics
Outsourcing is another logistics way of distributing work for a cheaper cost and in a more practical matter. In outsourcing and third party logistics, a company will request the services of other companies to comply with the requirement of a client. This can be in the form of third party warehousing or the lease of space from another warehouse. Another popular outsourcing is the requirement for additional trucks that will deliver goods or equipment.
Most companies that outsource their trucking needs are those that require special trucks for one time or occasional delivery of a certain product. For example, a plastic manufacturing company that has regular delivery trucks may need to relocate or sell one of their machines and they will need a special boom and trailer to transport this.
Licensing, importation, and exportation
As part of the abstract area of logistics, licensing becomes and integral part in order to comply with the legal papers of each commodity. Whether it falls under importation or exportation, trucking services should have the right documents to be able to facilitate a service. The responsibility of licensing depends on the company or the shipper but never on a third party trucking company. More manufacturing and industrial companies now outsource their logistics needs to be able to cope with the increasing needs of warehousing and to exercise less expenditures for the operation process.
In the trucking industry, the computerization of dispatching time and route has been one of the greatest innovations discovered when it comes to the transportation business. The GPRS has enabled companies to track down their trucks and their current status. This also added security on truck drivers, the company and the goods as well. This kind of automation has rendered an easier task in the world of trucking and it enables to provide a wireless solution for monitoring the handling and transportation of goods and the management of delivery schedules and trucking services based on the clients’ needs.
Big names in the trucking business now create more innovation in the safety and security of its drivers and goods during transport. The availability of this kind of safety innovations also attracts insurance companies in taking part in the business of trucking. As one of the most in demand business now, trucking companies are able to capitalize on the growing improvement of modernization and automation with the help of modern transportation logistics solutions that help them cut down costs while improving the efficiency of their trucking services.