Automation in shipping: how it all works

In the face of the pandemic and the mass transition to remote working, logistics companies have become even more active in implementing digital services. Let's find out what tasks they solve and how automation helps to save employees' time.

1. Transportation and logistics systems.

In most cases, this is a large cloud-based ecosystem that allows you to manage the delivery process, search for transportation companies by parameters, conduct online monitoring of the logistics chain, work with tenders and, without leaving the system, make mutual settlements with contractors. For example, Smart Logistics, one of the most popular systems in Russia, allows applications to be processed from shipper to transportation company - transparently and clearly at each stage. This process can be monitored in real time and, if necessary, adjustments can be made to requests. Conveniently, the transportation company can be found by parameters: number of trips worked, fleet tonnage and rates.

2. Digital tenders.

Digital tenders can save a company from 5% to 30% of its transportation budget. In terms of tenders, transportation and logistics systems work like this: a company publishes a transportation task, the carrier sees information about the order and its delivery conditions and can quickly set its own price. For a logistics company, this is a significant saving of time and money, because several carriers are competing for its order at once. In the past, transportation companies in the regions sometimes set very high rates, motivating the increased figures by the rising cost of fuel. Now everything looks different: carriers proceed from the adequate cost of the service and offer their own terms. The offers are really fought for. For example, more than 10,000 carriers are connected to Smart Logistics, which guarantees normal transportation prices.

3. Electronic document management.

Electronic document management in logistics solves several problems:

a) Postpaid payments are not delayed

A transportation bill signed by all parties is required to confirm the fact of service provision, while a “live” document can take a long time to reach the accounting department. For example, when the driver after unloading went with it to the next point, not to the office. Sometimes, to speed up the process, the waybill is sent by courier, mail or another flight - but this does not always add efficiency. As a consequence, there are cash gaps and delays in payment - especially critical if the cooperation is postpaid.

b) The paperwork always reflects important details

For example, the delivery address of the cargo is not always filled in - although the regulations regulate this. The problem may arise, for example, when the customer wants to redirect the cargo. It will not be possible to record this in accounting documents, because there are no entries in the “address” field. In this case, the carrier will only be able to send the cargo at his own expense.

c) Documents and cargo are not stolen

Cargo theft is something that is still happening in the XXI century. The police record hundreds of cases every month in Russia. Usually thefts are thought out in advance and arranged according to the classic scheme: the thief is built into the chain between the shipper and the carrier, introducing himself as a driver in front of the customer, and in front of the driver as a forwarder or customer. Then the “driver” stops communicating, and the car goes to a fake warehouse, where it unloads the goods to the thief using forged documents.

Electronic document management solves all these problems. Documents are signed instantly, all movements are easily tracked, and falsification of documents and employee contacts is eliminated. A transportation request can be signed with an electronic signature and all documents can be converted into electronic form: contracts, forwarding receipts, bills of lading, acts and invoices. Consequently, you can immediately demand payment upon rendering services.

By connecting to a specialized platform, documents can be signed even via Viber and SMS, and the documents will have the same legal significance. The services also help to quickly find the necessary documents and justify VAT refunds to tax inspections.

4. Warehouse Management Systems (WMS)

Warehouse Management Systems, or WMS, help in inventory management. They can be used to transparently track stock balances and monitor movements. By connecting partners to the system, you can manage vehicle arrival schedules.

5. Transportation Management Systems (TMS)

These are programs that calculate the cost of transportation by different modes of transport. Managers can quickly calculate the cost of customs costs, add loading and unloading operations to the calculation of the request.

The program also tracks movements, and at the manager's request, it instantly provides information about the location of the cargo and provides information about the actual timing of the arrival of transport at the customer's warehouse.