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How to select a digital logistics platform

First and foremost, before you can think of selecting the best digital logistics platform, you have to understand what it means and what is it that it does. 

A transportation management system or as many call it a digital logistics platform is specialized software for planning, executing, and optimizing the shipment of goods. 

Logistics companies use this platform to perform three main tasks.

  • Find and compare rates and services of carriers available to ship the customers’ orders.
  • Book the shipment
  • Track its movement all the way until it’s delivered. 

The main goal when someone is using a digital logistics platform is to improve shipping efficiency, reduce costs, gain real-time supply chain visibility and ensure great customer satisfaction. 

Now, who are the primary users of digital logistics software?

Well, shippers and carriers are the main primary users. Then manufacturers, distributors, e-commerce organizations, wholesalers, retailers, and third-party logistics providers can also use the digital logistics software for its benefit. 

A digital logistics platform can be very beneficial for companies in numerous ways, for example: 

  • It reduces distribution and warehouse costs through better fleet management, labor, space use, and coordination between the transportation and fulfillment functions.
  • There is higher customer satisfaction from a more responsive shipping process.
  • Great supply chain visibility. You have the ability to track and monitor the lifecycle of orders and shipments in real-time.
  • Improvement in inventory management and forecasting, thanks to better visibility and accountability in the supply chain network.
  • And finally reduced administrative costs and invoicing errors by automating freight payment and auditing processes.

Now, let’s move to how I can choose the right platform to work with, given the large number of options available.

  1. Define your business goals. To find out how a digital logistics platform can best support your business, consult with key internal stakeholders to identify current challenges, opportunities, and goals.
  2. Plan for the future. Since no business can predict what is going to happen next, look for a digital logistics platform with a modular approach that can grow along with your operations.
  3. Decide what your budget will be. Find out how digital logistics platform contracts work and what the fixed costs are. Depending on your business needs, you may need to allocate additional funds to cover enhancements.
  4. Plan your carrier connectivity. While some digital logistics platform providers offer pre-existing connections with hundreds of carriers, others expect you to manage those on your own.
  5. Assess data analytics and reporting capabilities. Since the purpose of a digital logistics platform is to help business people make informed decisions based on data, evaluating its analytics and reporting capabilities is essential.

Now that you know all of this information and why using a digital logistics platform is important you can now choose which platform is the best one for you and your company to use. 

Find out more about TrustedTrucks

TrustedTrucks is the logistics entrepreneur’s lowest cost digitization toolkit for competing with the larger market players and securing a sustainable place in the future of the logistics industry. 

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