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The Role of Mobility in Reducing Logistics Costs

The logistics industry is one of the major contributors to the global economy as well as a vital part of any business model. Despite that, logistics firms face numerous challenges which can force them to permanently close down. One of these challenges is delivering quality service at reduced costs to meet customers’ needs. To successfully overcome this, however, companies need to curb their costs.

Enterprise mobility has proven to be one of the most effective methods for reducing costs across industries. It also delivers benefits which positively impact a company’s bottom line, such as enhanced workforce productivity and automation of time-consuming manual processes.

With a mobility solution in hand, your logistics firm will begin saving on the following three costs.

The Costs of Fuel

In 2018, the World Bank expects the prices of energy commodities to climb 4%, reversing a two-year trend of lower fuel prices. This will force firms to hike their service prices or be at the risk of losses. Some labor intensive companies will also be affected internally if they decide to revise incentives for workers as well as fuel allowance to prevent passing the costs down to consumers.

Now there are several ways of optimizing delivery routes, including having multiple deliveries per route. Firms, however, avoid these because of the lack of transparency and communication throughout the process. The same reasons are also what stop companies from collaborating, especially for last mile delivery.

Mobile forms and apps can effectively reduce fuel costs by achieving the following.

  • Improved Routing – Drivers can share their GPS coordinates as well as data such as fuel consumption up till reporting time. Using analytics, office staff can then help them optimize their routes to avoid traffic and other causes of delayed deliveries. Data collected from drivers also helps companies monitor driver behavior, which is a major contributor to fuel use.
  • Improved Record Keeping – Gaining full control of fuel assets allows firms to eliminate losses caused by issues such as theft. With a mobile app, companies can gather data related to fueling operations, then use it for evaluation and improvement purposes.
  • Timely Vehicle Maintenance – Well-tuned, in-repair vehicles perform at peak levels and tend to consume fuel reasonably. With the help of mobile forms, firms can sustain a regular maintenance schedule and fix any anomalies that can cause more fuel consumption or total vehicle breakdown.
  • Enhanced Collaboration – Companies setting up horizontal collaboration partnerships or alliances can streamline communication with mobile apps and forms. In addition to sharing the cost of fuel, striking alliances reduces competition on different routes.

The Costs of Talent Management

Professional talent is more important than ever for the logistics industry, especially as it acts as a competitive differentiator. Unfortunately, the Council of Supply Chain Management Professionals (CSCMP) estimates there is one qualified person for every six job openings in the industry. With such a huge talent gap, firms are under pressure to attract the right people.

Another cost logistics companies face is the cost of employee turnover. Talented employees leaving can set companies back by $15,000 to $20,000 per employee. With more lucrative opportunities across the industry, firms need to improve their ability to retain talent.

Mobile apps can help with all the aspects of talent management.

  • Recruit – With the help of zero-code mobile app development platforms, firms can create downloadable mobile forms for job candidates to fill. In addition to creating a positive impression on new talent, mobile forms allows recruiters to collect the information they need rather than mine for it while skimming through resumes.
  • Hire – During the hiring stage, new employees can send transcripts and other personal records securely through mobile forms. Not only does this make gathering employee documentation quicker, it eliminates the cost of printing, scanning, and mailing contracts and important documents.
  • Retain – Onboarding is essential for engaging and retaining talent. It can also be mobilized through a variety of forms and pages. For instance, an onboarding app can deliver welcome notes from the CEO or founder, allow new hires to upload additional paperwork, and communicate with their superiors.
  • Develop – Supervisors can easily fill mobilized employee evaluation and performance appraisal forms. As a result, they can provide prompt feedback to employees and help them develop their skills. Mobile apps can also include checklists and informative pages to educate employees and ensure they follow best practices.

The Costs of Warehousing

Warehouses are one of the biggest assets for many logistics firms. They are also one of the biggest expenses incurred as they have a real impact on the business’ bottom line. One of the reasons warehouses contribute to costs is that many companies still manage them manually. With the help of enterprise mobility, however, logistics firms can effectively reduce warehousing costs.

More precisely, mobility helps reduce the following warehousing costs.

  • Holding Costs – Also known as inventory carrying costs, holding costs are broken down into several costs such as inbound and outbound inventory and warehouse maintenance costs. Managing these costs will require several low-hanging improvements, which are achievable through mobile apps and forms. For instance, barcode scanning in mobile forms can save time and effort usually spent on manual tracking.
  • Shortage Costs – Running out of inventory can cost some companies a considerable sum. Not only does this lead to missed sales, it may also erode customer loyalty and damage the business’ reputation. Good inventory management can help counter shortage costs as it ensures the availability of reasonable levels of safety stock. Mobile forms can help automate this aspect, and that too at a very affordable cost.
  • IT Costs – Some inventory management systems are too expensive for smaller businesses to implement. However, mobile apps and forms are easier and less expensive to implement as members of the workforce already own at least one mobile device. Moreover, the cost of creating these mobility solutions is extremely low. This is especially true if you opt for an enterprise mobile app development platform that requires no coding expertise.

Are You Ready to Save Logistics Costs Now?

Mobility is THE solution to help you save on these costs and more in the upcoming years. Creating your own enterprise mobile apps and forms isn’t as costly or as difficult as you think. Through Makeen transform Platform, business professionals can easily design and roll out professional-looking apps and forms. Watch our tutorials to learn how to swiftly create apps to help out in every aspect of your logistics firm.

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