Under the changes in business flow, contract logistics will face challenges and countermeasures

Mondo Finance Updated on 2024-01-30

Contract logistics is an important solution for shippers to solve logistics problems, by signing logistics service contracts with professional logistics service providers, the logistics activities are stripped out, so as to avoid investment in non-core business, reduce logistics operation costs, and enjoy professional and advanced logistics services. In this context, contract logistics has achieved great development.

However, in recent years, with the rapid change of the market environment, the sales channels of enterprises have become more and more diversified, forming a new business flow.

The impact of changes in business flows on contract logisticsIn the past, the logistics of shippers was mainly based on the wholesale model. In the wholesale model, the enterprise passes through large wholesalers to small and medium-sized wholesalers and finally reaches the end customers. At this time, the sales channel is relatively single, the number of end customers and the number of orders are small, and it is characterized by large quantities and small batches. Therefore, its transportation services are also relatively simple: the transportation is simple, the routes are relatively centralized, the highways are mainly large-ticket LTL, and the whole management process is more manual management and decision-making.

Now, enterprises are changing from a wholesale model to a new retail model, and the channels are constantly sinking and diversifying. The number of end customers is increasing, and the number of orders is also increasing, and the characteristics of orders have obviously become small batches and high frequency. With the change of business flow, the corresponding logistics and transportation have also become very complex. The transportation area covers the whole country, the mode is becoming more and more diversified, and the transportation capacity is becoming more and more vertical. Logistics management must adopt new methods and new models to keep up with the pace of front-end changes.

Therefore, logistics increasingly needs information management and digital decision-making to replace the original manual management mode.

Advantages of digital logistics managementSmall batches and high-frequency orders will inevitably make logistics operations frequent and trivial, and the difficulty of logistics services will increase, and with it, there will be an exponential increase in business data and business tracking and monitoring needs. These are things that the traditional manual management model cannot cope with. Therefore, under the new business flow, contract logistics urgently needs to use digital management to improve business management and control capabilities and logistics service capabilities.

Business Information Sharing

The information of the logistics business process and results is transmitted to the digital management platform to realize the visibility of the logistics business process, including the trajectory of each order, the time of each node in the transportation process, and the time of the event. Through different permission settings, information sharing between relevant roles and departments is realized, and intuitive guidance is provided for the overall control and resource scheduling of logistics tasks. At the same time, the transparency of business information improves the convenience of customer business inquiry and follow-up, and optimizes the service experience.

Platform-based collaboration at all ends of the business

The digital management platform can connect with the order management system, warehouse management system, and transportation management system, and complete the order distribution with high quality through data analysis and intelligent decision-making. For example, according to the order demand and distribution requirements, retrieve the inventory information in the warehousing network, and consider the transportation resources for the fastest collection and transportation nearby. The resource scheduling and service efficiency have been greatly improved.

Intelligent management and scheduling of transportation solutions

Under the new business flow, small-batch and multi-batch transportation has become the norm, large-ticket LTL and vehicle transportation have become a thing of the past, and now there are more small orders and multi-batch transportation. In such a situation, it is a challenge to develop an optimal transportation concept. The digital transportation management system, through data analysis and intelligent decision-making, realizes intelligent order consolidation, and intelligently plans and selects the optimal capacity and transportation route according to the type of goods, transportation requirements, delivery and other conditions. Greatly improve the level of intelligent management and scheduling of transportation solutions.

The new business flow breaks the original "large" logistics model and puts forward more detailed requirements for logistics, which and the exponential increase in the number of orders, determines that logistics must be managed with the help of digital technology. Through information sharing, data analysis, intelligent decision-making and other technologies, the efficiency of logistics operation and the quality of logistics services have been improved.

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