To better understand what a digital packing slip is, how it differs from a paper packing slip and what benefits it offers, read on to learn more.

What is a digital delivery note?

A delivery note is a document with detailed information about the products delivered that serves as documentary proof of delivery. It is the selling company that generates the document and keeps a copy for the customer or the receiving company to receive the original and check that everything is in order. 

What is the difference between a paper packing slip and a digital delivery note?

Traditionally, these documents were generated with office software, printed and delivered on paper to the customer, while the salesperson kept a copy.

In contrast, the digital delivery note is generated with various types of programs, for example, with a module within a logistics software. In addition to that they are signed with an electronic device such as a smartphone so that the delivery is confirmed and all data is well checked.

What are the advantages of the digital delivery note?

Faster and easier access to information

When important documents such as delivery notes are printed and photocopied, copies are often limited for the number of staff who have to file and manage them. This leads to the situation of spending a lot of time searching for the papers when they need to be rechecked.

En cambio, con un albarán digital, todo el personal autorizado tendrá acceso a todos los albaranes desde los dispositivos que trabajen y podrán monitorizar cuándo son firmadas y confirmadas las entregas. Además de que los documentos se pueden gestionar directamente con un software específico, como con un TMS.

Reduction of errors and avoidance of losses and damages

Paper documents are more prone to errors, since the process of generating them is more manual. Moreover, another major disadvantage of physical documents is that they can be lost or damaged, which causes a lot of problems in document management.

For this reason, with a module in the software that creates and sends digital delivery notes, it is more difficult to make mistakes because its management is more automated. In addition, there is no longer the fear of losing the delivery notes once they are inside the company's ERP.

Saving resources and time

It is estimated that an SME company spends around €1,500 to print around 10,000 documents on expenses such as paper, ink and printer. Although it depends on the company's equipment and the maintenance required, the costs are undoubtedly high, also with the amount of disposable paper generated.

By accessing the digital delivery note, these costs can be saved by dispensing with the use of paper for the document management of digital delivery notes. It also saves a lot of time for carriers and other personnel, who can focus on more important tasks.  

Improved inventory management and customer service

One of the advantages of the digital packing slip is that it keeps all documents digitized and unified in one place. In this way, it is easier to perform a correct inventory management, since you can automatically keep updated inventory records and activity with the integration to inventory and billing management systems.

Another benefit is that using a digital delivery note allows for a more detailed record of products by providing access to product details such as serial number or product lot. This makes it easier to manage warranties, returns and customer complaints.

Security

It is well known that digitizing certain processes and procedures also involves applying security and privacy protection to prevent such information from being easily leaked.

A digital delivery note will usually have support to ensure data security and privacy. Several examples are limiting its access by users and applying extra measures such as user authentication and data encryption.

Conclusion

As we have seen, the digital delivery note provides a number of advantages that can be summarized in four words: agility, accuracy, efficiency and security. Today, these features are essential for the management of these documents to meet the requirements of the supply chain.

At Hedyla we listen to what our customers request the most and continue to work on our logistics software to implement more tools that complement the core function to offer a complete solution.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

That said, what elements do packaging and logistics software have in common to improve the supply chain? How can they be combined to be more efficient and provide better customer service?

The following points will explain how packaging and logistics software can become great allies in improving profitability and customer satisfaction.

Load optimization

Load optimization is one of the key aspects in the improvement of freight transport, as non-optimized planning can lead to loss of profitability due to the costs involved in transport. Both logistics software and packaging play an important role in this improvement.

It is known that one of the most common bad practices is the inappropriate use of larger packaging than necessary, which leads to more space being taken up in the load and has an impact on optimal load planning. Therefore, the application of more packaging types that cover the usual order range is indispensable for optimal load planning.

In addition, properly sized packaging gives a true picture of the capacity of the vehicle fleet, avoiding empty spaces that could be used. As a result, logistics software focused on route optimization and fleet management does a better job of planning the transportation of goods, helping to reduce costs and resources.

Applying sustainability in logistics operations

Nowadays, there is greater awareness on the part of companies regarding the environmental impact generated by the logistics sector, such as waste generation and CO₂ emissions. As a result, innovative solutions have been created in packaging and logistics software that aim to be sustainable.

For example, in the case of packaging, apart from using the right size, the aim is to use recycled and/or biodegradable materials and reduce the use of plastic in packaging in order to generate less waste. On the other hand, logistics software can have built-in modules specialized in emissions control that help calculate the amount of carbon dioxide emitted and make better decisions to reduce them.

Optimization of logistics nodes and production control

Within the optimization of the supply chain, the management of the production of goods to adjust it to the distribution capacity and demand prediction stands out. In this case, the function of logistics nodes can be improved through the application of new technologies and packaging decisions.

It should be noted that packaging is an essential element of the product in several aspects, both for the marketing of the product and for its safety when it is transported. Controlling the production of your packaging must go hand in hand with the production of the product itself to avoid bottlenecks in the supply chain.

That said, there are several logistics software that have the ability to manage the production of factories for subsequent distribution, such as the Supply Chain simulator. In this way, you can compare the usual scenarios with optimized scenarios to optimize production and distribution at a strategic level.

Traceability

It is well known that traceability is achieved by means of a labeling system, either a barcode or RFID label, which is usually affixed on top of the packaging. However, there are new methods that allow cost savings in materials without leaving the packaging labeled, such as direct printing on the boxes, as they eliminate part of the complexity of the coding system on the production line.

Also, most logistics software has traceability systems that allow real-time tracking of the status and location of orders. Therefore, traceability proves to be vital for order planning and customer troubleshooting. 

Conclusion

Both packaging and logistics software are components that can be combined at the operational level and at the strategic level to optimize the supply chain and achieve better results. In addition, some aspects are interrelated and can achieve the same goal, such as optimizing vehicle loading and being more sustainable.

This week part of the Hedyla team will be present at Pick&Pack, the event that brings together professionals looking for packaging and logistics solutions in Madrid, showing how our solutions can be combined with the needs and constraints of the supply chain to optimize logistics operations.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

These are the steps to follow in order to be able to measure CO₂ emissions in transportation within the logistics sector:

Calculating the carbon footprint

The first step in calculating carbon emissions is to identify the specific activities that generate the carbon footprint. In the particular case of transportation, these actions focus on vehicle fuel consumption and the parameters that follow are as follows:

• fuel type
• the amount of fuel used
• the number of active vehicles

For this purpose, there are several methods to calculate the amount of emissions generated by each vehicle. For example, one of them is to install devices in vehicles that make an approximate estimate based on various parameters such as distance traveled, idling time, among others. Another way to measure these values is to make estimates using a database.

Analyze transportation routes

It is undoubtedly one of the most important steps to start measuring CO2 emissions in transportation. This is because transportation routes are one of the factors that have the greatest impact on fuel consumption and, therefore, on the increase in emissions.

In this case, when analyzing delivery routes, several fuel-saving opportunities can be found, such as minimizing unnecessary kilometers, optimizing vehicle loading and being more efficient in orders to avoid empty kilometers. Today, such analyses can be performed easily thanks to logistics software, in particular route optimizers.

Promoting good driving

En la conducción de los vehículos existen hábitos no recomendables que aumentan el consumo del combustible, causando más impacto en la huella de carbono. Además de que dichas acciones no solamente gastan más combustible, sino que pueden reducir considerablemente la vida útil de los vehículos, necesitando más inspecciones y mantenimiento en el proceso.

One of the essential tips for good vehicle management is to drive at the right speed consistently, avoiding acceleration and hard braking. In addition, training can be provided to carriers on such practices to assist in reducing carbon dioxide emissions.

Switching to fuel-efficient vehicles

There is no doubt that upgrading the vehicle fleet to other more sustainable models is a more direct and effective way to greatly reduce CO₂ emissions. Even more so when vehicles exceed a certain age and no longer operate effectively, causing more fuel consumption.

Electric vehicles and hybrid vehicles are two of the most effective options for reducing the carbon footprint. However, there are also alternatives that are less polluting than gasoline, such as natural gas or biodiesel.

Use emission tracking technology

Finally, the amount of emissions generated by the transport vehicle fleet must continue to be monitored if the main objective is to reduce them. To this end, there are emission tracking devices and technology that make it possible to observe the amount of emissions in real time and monitor transport performance.

Such monitoring technology includes certain logistics software such as a TMS that has a specific module to monitor the CO2 emissions generated by the active vehicle fleet. In addition, there are also other devices and modules that analyze vehicle and route performance.

Conclusion

Measuring and reducing CO2 emissions in freight transport is essential if carbon footprint reduction targets have been set, for example, to gain access to low-emission zones in a city. However, there are steps where the initial investment is very high, such as purchasing new vehicles, but there are other measures that are easier to implement and control, such as route analysis.

At Hedyla we develop our logistics tools adapted to the needs of each customer depending on the sector they operate in and the restrictions applied, with CO2 emissions reduction as an option.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

For that reason, the people who have contributed to logistics and its evolution consist of both anonymous individuals and historical figures better known for their other facets, from architects and artists to generals and military strategists. However, there have been women who have pioneered or contributed to the logistics and transportation industry who deserve recognition.

Below, we will showcase pioneering women in the logistics and transportation industry who have contributed to the development and evolution of this discipline.

Mary Walton

Mary Walton was an inventor whose many inventions were major breakthroughs in reducing air and noise pollution from railroads in the late 19th century. In 1879, she patented a system to redirect emissions by using water tanks to trap pollutants and convey them through the sewer system.

Years later, in 1881, he managed to advance and patent an invention that was requested to Thomas Edison, who failed to get it off the ground. It consisted of wooden boxes using absorbent cotton and sand that were placed on elevated tracks to reduce noise pollution. Walton was also one of the first environmentalists. 

Sarah Clark Kidder

Sarah Clark Kidder was an early leader in the logistics industry, particularly the railroad. She won an absolute majority to become president of her husband's railroad shortly after his death, the NCNGRR (Nevada Narrow Gauge Railroad) in 1901.

Under his leadership, he was able to pay off all outstanding debts and return dividends to shareholders. He also optimized the railroad route with the construction of the Bear River Bridge, the highest bridge in California at the time, which shortened the travel distance between the two ends by approximately 3 kilometers.

Luella Bates

Luella Bates is believed to be the first female carrier in the early 20th century. Because World War I forced most male employees out of their jobs, these jobs had to be filled by more female labor, including carrier vacancies.

Bates was hired as a test driver for the Four Wheel Drive Auto Company in Clintsville, Wisconsin, and continued to work there after WWI. There she was sent on three transcontinental trips across the U.S. in various road and weather conditions to prove that FWD trucks were very easy to drive.

Lillie Elizabeth Drennan

Drennan is considered the first commercially licensed woman trucker and owner of a trucking company. In 1928 she co-founded a trucking company with her husband and later, after their divorce, continued at the helm of their company until 1952.

Durante su carrera obtuvo un historial de conducción ejemplar y ganó varios premios por su seguridad. Así demostró que las mujeres pueden ser tan buenas transportistas con licencia comercial como los hombres.

Pilar Careaga y Basabe

Careaga was the first woman train driver in Spain, causing a stir when the media reported the news in 1929. The first trip she made as a driver was from Madrid's North Station to Bilbao's North Station.

She began her career as a machinist with an internship at the age of 21 at the Compañía de los Caminos de Hierro del Norte de España. She later became the first woman to graduate in industrial engineering from the Madrid School of Industrial Engineering.

Apart from that, in 1969 she became the first woman mayor of Bilbao and served until 1975. Through her achievements and efforts, Careaga has proven to be an exemplary woman who has broken several barriers and has been a pioneer in her various careers.

Gladys West

West is an American mathematician whose research has contributed to the foundations of GPS. In 1956, she started working at the Center for Naval Surface Warfare and her main task was to collect information on satellites in the U.S. Navy. West led the Seasat radar project, the first satellite capable of remotely sensing oceans.

In addition, in 1986 he published a guide to improve the Seasat position calculation, which were the foundations for the invention of GPS systems in 1995. However, his important contribution was not recognized until 2017, when former commander Godfrey Weekes explained his contribution to the development of the accuracy of GPS systems.

Thanks to Gladys West, the geolocation system is nowadays massively used for private and freight transport.

Conclusion

There have been several women, both professionals and inventors, who have been pioneers and have contributed to the evolution of logistics and transportation. However, many of their contributions were not recognized at the time and were not recognized until decades later.

For example, Hedy Lamarr, actress and inventor from whom the name Hedylacomes from, patented a frequency hopping system in 1942, which later laid the foundations for the creation of wifi. However, her contribution as an inventor was not recognized until the 1990s.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

However, what about last-mile distribution in rural areas? Despite being places with low population density and less traffic, distribution of goods has its own challenges due to the long distances and lack of facilities that urban areas often have. In this case, how does last-mile distribution in rural towns differ from urban areas?

If you want to learn about the challenges of the last mile in rural areas and how it is distributed in such environments, read on.

Partnership with local companies

Nowadays, it is already common to see logistics operators and other companies having partnerships with small businesses and other local companies to use their physical spaces as urban hubs or delivery points. In rural towns, such partnerships are more frequent and essential to optimize the rural last mile.

This is because local businesses located in agricultural areas have a better understanding of distribution areas, such as logistics social services that facilitate the delivery of products to families. Therefore, they have the potential to offer better logistical support, such as temporary storage areas or delivery points for delivery routes that are very extensive or difficult to access.

Use of specialized vehicles

Due to the uneven topography and road conditions, transport vehicles must be adapted to the usual rural road conditions. Sometimes it is even necessary to have an off-road or four-wheel drive vehicle.

However, there are a number of trucking companies and other organizations with a fleet of vehicles adapted for rough terrain. Either having your own fleet of adapted vehicles or relying on the services of another company that offers them are suitable options for adapting last-mile distribution to the rural environment.

Use of community delivery points

One of the most obvious challenges in rural last-mile distribution is its capillarity, where there are long distances between delivery points and they are often difficult to access due to unreliable infrastructure that can cause delays. To this end, as mentioned in the collaboration with local businesses, the key to facilitating deliveries is community delivery points.

Community delivery points have the advantage of centralizing deliveries from more remote destinations where home delivery is not feasible. This brings out the potential of better-connected locations in a rural setting such as stores, post offices and other community gathering spaces to become collection points.

Apply delivery tracking

In modern logistics, more and more customers have the need to know in real time the location and status of their order to ensure that the goods arrive on time at the right address. In a challenging environment for logistics in general and last mile distribution, this demand is doubled.

For this reason, the best allies to achieve real-time tracking in deliveries are GPS systems, tracking tags and other devices to ensure visibility at all times and updating it at each passing checkpoint. In addition, delivery tracking technology is vital to employ route optimization for carriers to make routes more efficient in rural areas.

Conclusion

The challenges of last mile distribution in rural areas seem to be even more challenging than the urban last mile, mainly because of the lack of adaptable infrastructure in villages compared to cities. However, there are a few challenges that have more in common than they seem, such as delivery points and others that cover totally different needs, such as vehicles adapted to irregular topography.

At Hedyla we adapt the route optimization parameters according to the sector and use cases operated by the customer, covering their specific needs and guaranteeing a quality level of service.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

One of the most relevant solutions is the use of bicycles for last mile distribution or known as Cyclologistics. Cyclologistics consists of strategies that seek to promote the use of bicycles and other sustainable mobility vehicles to reduce the carbon footprint. However, in order to be successfully applied to cities, certain requirements must be met to facilitate its implementation and use.

If you want to learn more about the keys needed to boost cycling, read on:

Identify areas with high delivery density

It is one of the first steps to be taken before implementing other strategies that promote cycling and involve changes in the city's infrastructure. To do so, it is necessary to have information that can be provided by logistics operators or parcel services.

From residential neighborhoods to commercial districts, any of these areas can fall within the delivery "heat map". This will make it much easier to design efficient delivery routes for sustainable mobility vehicles using a route optimizer.

Installing Urban Hubs

It is undoubtedly one of the most indispensable elements for the promotion of cycling, since, without them, delivery with bicycles and other light vehicles is not possible. This is because most last-mile distribution starts from logistics centers located in industrial parks on the outskirts of large cities. Therefore, without the presence of logistics hubs, heavier vehicles such as vans are needed for deliveries.

But it is not only a matter of installing urban hubs per se, but also of carefully studying the strategic points of the city where an urban hub and its fleet of bicycles would reach their maximum potential. To do this, it is necessary to take into account the volume of deliveries by zones, the traffic on the roads, other streets that are difficult to access for larger vehicles, etc. 

Collaboration between public entities and private companies

In recent years, several companies and startups have emerged with very interesting proposals to promote cycling in last mile distribution, such as Washa Logistics. However, in order to carry out their proposals, it is essential to have the collaboration of public entities.

From municipalities to certain institutions focused on urban mobility, close collaborations should be established to give the green light to cycling projects. Particularly, if the initiative requires some changes in public infrastructures, such as more parking places for light vehicles.

Improving cycling infrastructure

It is common for larger cities to have several circulation zones with approximately bike lanes. However, there are cities that lag a bit behind in the number of lanes, so cyclists are obliged, according to Spanish regulations, to ride on the right side of the traffic lanes. This lack of adaptation of roads for cycling can slow down distribution and make the roads more unsafe for delivery drivers.

To do this, it is necessary to identify the areas with the highest bicycle traffic and analyze the best ways to implement the lanes without affecting the circulation of other vehicles. With such improvements, delivery vehicles will circulate on safer and more efficient roads, enhancing cycling.

In addition to more bike lanes, there are also parking spaces for bicycles and other light vehicles. This means that delivery drivers will have more parking spaces at their disposal to deliver orders.

Establishing incentives and public policies

In recent years, authorities are starting to establish low-emission zones and limiting the entry of heavier or polluting vehicles with the aim of reducing carbon dioxide emissions. It is therefore essential that they also establish incentives and public policies to facilitate the promotion of cycling.

Such incentives may include subsidies, economic bonuses or tax reductions that facilitate the transition from the use of fuel vehicles to the acquisition of light vehicles for sustainable mobility. In addition, in order to strengthen the use of bicycles for both delivery and personal use, it is advisable to promote the use of this type of vehicles with road safety education campaigns and programs.

Conclusion

Cycling is becoming a very attractive trend for urban logistics and last mile distribution because of the many advantages it offers: reduced emissions and more efficient delivery routes. However, it needs to form a close collaboration with municipalities and other public entities to, if necessary, adapt public roads and facilitate as much as possible the delivery with sustainable mobility vehicles.  

At Hedyla we work with customers with use cases focused on parcel and delivery to focus delivery routes by zones in order to save time and deliver excellent quality of service.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

In general, to adapt operations towards omni-channel logistics, the strategy must be customer-centric and linked to other departments such as sales and marketing. But the question is whether omni-channel logistics differs much from other more conventional strategies.

In order to know the ways to manage omnichannel logistics, the following points have to be taken into account:

System digitization

Once an omnichannel strategy is established for the company, it is essential to have a centralized logistics management system to keep all data on inventory, orders and shipments up to date and to receive them in real time. This is known as logistics 4.0.

To do this, it is necessary to look carefully or rely on experts in the field to choose the best solution that connects and keeps all the data updated with the database systems that the company already has. Whether it is an ERP with logistics modules or a more specific solution such as an inventory manager or a WMS, or even, to optimize transport management, a TMS.

Omnichannel order picking

The growing trend of e-commerce and, therefore, omni-channel logistics has marked a turning point in the way orders are prepared. It mainly consists of adapting picking and packing strategies to focus mainly on the preparation of orders to customers without relying on the distribution channel.

For example, boxes have become the packaging of choice for direct shipments and for multi-unit orders, i.e. orders of multiple different items and small quantities. Another important element to consider is the distribution centers or logistics nodes through which orders must be prepared that are closest to the customers, even when reverse logistics must be managed.

Flexibility in shipments

If you decide to apply an omnichannel strategy in both the sale and distribution of orders, you must offer the customer the option of different shipping options. Among these options, the most frequent are the following:

• Home delivery: This is undoubtedly the most popular option of all, both on the part of the customer and on the part of the transport services, but the most expensive in terms of fuel and delivery attempts. Your service can range from standard delivery to express delivery.
• Pick up at physical store: Conocida como Click & Collect, es una opción más económica en el que la tienda física escogida por el cliente es quien recibe el producto y es el propio cliente quién va a buscarlo. Se reducen los costes de última milla y tiene el potencial de ofrecer una experiencia de compra más satisfactoria.
• Convenience points or smart lockers: Similar to physical store pickup, with the difference that third parties outside the store pick up the product and hold it for a period of time until it is picked up. They consist of other stores outside the e-commerce or smart lockers.

The combination of different shipping options aims to offer an omnichannel shopping experience to customers. Apart from that, it has its advantages to leverage both online and offline distribution channels.

Suitable transportation and logistics options

If previously one or two transport companies were used to make deliveries, when implementing an omnichannel strategy, more options of logistics operators are needed to cover the sales channels.

To do this you have to take into account the different ways that direct delivery can be given. It may be that the shipment is made from the distribution center, a store near the customer or opt for a method such as dropshipping and is sent directly from an external supplier.

Monitoring and follow-up

Geolocating shipments and monitoring their current status is essential to ensure that deliveries arrive on time. Particularly when there is an omni-channel strategy and orders are shipped through multiple channels.

This is because omnichannel is customer-centric and the demand demands transparency and knowledge of the status of their shipment 24 hours a day. In addition, tracking provides more agility when it comes to resolving any possible incidents that may arise in the shipment.

Conclusion

As we have seen, effective omni-channel logistics management requires a combination of technology, processes and innovative strategies, just like any other 4.0 logistics strategy. However, it must be kept in mind that all logistics is focused on the customer and meeting their needs.

At Hedyla we adapt the software to any specific use case, providing the necessary tools to both staff and carriers to report and have full control of the transport management.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

It is well known that all logistics operations require rigorous monitoring and agility to run efficiently, from supply chain management to last mile distribution. For this, one of the most popular solutions is IoT and digitization of certain operations in the logistics department.

In this case, in which logistics operations is IoT technology used specifically? If you want to find out how IoT and AI are used in logistics, read on:

Predictive analytics

It is one of the best known tools where both AI technology and IoT are used. It consists of using previously collected data to forecast future results and, to do so, it organizes the data obtained, preprocesses them and develops predictive models so that the results can be validated later.

The advantages of applying predictive analytics to the logistics sector are varied. Some of its most frequent uses are:

• Demand forecasting: We analyze the sales history together with the market and estimate the sales that would be generated on the products.
• Supply chain planning and optimization: Thanks to a prior analysis of the demand, the right quantity and timing of the production of the goods can be calculated.
• Inventory optimization: Demand estimates help in making decisions about optimal stock levels for each type of inventory.
• Improved resource management and savings: By applying current data taking into account constraints and other characteristics, it is possible to optimize resources and reduce operating costs.

In general, predictive analytics act as a guide for decision making and to give us a more accurate estimate of future activities. In this way, a clear view of the current and future situation of the supply chain and company is obtained.

Real-time shipment tracking

The most important and essential thing that customers ask for today is transparency in reporting the status of the order in real time to ensure that it arrives at its destination at the agreed time without incident. Today it is possible to receive all the data thanks to geolocation algorithms received by sensors via wireless networks.

The advantages of order tracking focus on estimating delivery times and detecting and solving problems. For example, if an order is not going to arrive on time or has been lost due to a wrong address or accident, the incident can be solved as soon as possible or an alternative can be offered to the customer.

IOT and Blockchain

Una de las tendencias al alza en el sector de la logística y del transporte es el uso de la tecnología Blockchain en la cadena de suministro. Y esto es porque, junto con el IoT y la IA, se puede crear un conocimiento de embarque digital (BOL)  que aporta trazabilidad de productos a lo largo de toda la cadena de suministro.

The combination of Blockchain and IoT can bring many advantages to any sector that distributes products, especially when it comes to quality items such as wine. For example, with BOL, a smart contract can be created to know the origin of the product and its path to the end customer. You can also apply GPS trackers that can calculate temperature, humidity, among other things to ensure compliance with the contract.

It should be noted that Blockchain technology allows stored data to be more secure because they are decentralized, have irreversible transactions and are highly encrypted. For these reasons, the probability of being stolen or suffering cyber-attacks is reduced. 

Route optimization and fleet planning

One of the most important aspects of route planning is traffic patterns, i.e., the flow of traffic on certain roads and other public roads. AI, thanks to its learning capabilities, can study such patterns to detect peak traffic hours, maintenance works, among other features. IoT devices can also add more information by tracking and collecting data for future analysis and better planning.

It should be noted that the main objective of a route optimization solution is to save fuel, other related resources and costs. However, greater efficiency in the distribution of goods translates into a more satisfactory and competitive service, especially in the case of last-mile distribution.

Safety of personnel and property

Safety within logistics operations can be improved through IoT or AI solutions. On the one hand, predictive maintenance can be performed on trucks and other machines using IoT devices to detect potential problems and prevent accidents. On the other hand, cameras and other AI-enabled systems can detect suspicious movements of potential thieves in warehouses and alert those responsible, while IoT-enabled sensors can automatically lock connected doors.

It is worth mentioning that the estimated useful life of a truck is approximately 10 years, however the average age of trucks circulating in Europe is 14.2 years and in Spain the average is slightly higher at 14.3 years. Therefore, predictive maintenance of vehicles not only prevents breakdowns, but is also very useful to carry out good practices and extend the useful life of the fleet.

Conclusion

Es evidente que las tecnologías IA y el IoT suelen estar fusionadas para los avances tecnológicos que necesita el sector de la logística y del transporte con la finalidad de responder a las necesidades actuales de la industria. Tales como cubrir una mayor demanda, aportar transparencia de los pedidos a los clientes  o la reducción de costes frente a una situación incierta.

At Hedyla our software relies on AI to analyze common routes, traffic patterns and other characteristics to generate various planned route models and choose the most optimized result that fits the customer's needs.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

So, once it happens... What can you do about it? If you want to know the ways in which you can maintain an optimal availability rate and cope with a stock out, take a look!

Assess breakpoints

Una vez que la rotura de stock ha sucedido, es recomendable analizar los puntos que han conducido a agotar el inventario de seguridad. Las principales causas son las malas previsiones de ventas y la falta de comunicación interna y externa, pero también forman parte factores externos como el retraso del envío de los proveedores o cambios difíciles de prevenir en las tendencias del mercado.

To do this, you need to communicate with the rest of the staff to understand what happened. In this way, you will get a clearer picture about the causes of the stockout and can start taking action as soon as possible to avoid being out of stock for a longer period of time. 

Establishing a good replenishment policy

If it has been shown that the current replenishment policy is not sufficient to ensure optimal availability rates, it is best to employ the necessary improvements to start stocking the inventory as soon as possible. The measures to be reviewed to avoid stock-outs are as follows:

Inventory forecast

Undoubtedly, not making a good demand forecast is one of the most common causes that leads to stock-outs, especially if there are sudden peaks in demand, even if they are not seasonal. For this, you should study the inventory distribution data to detect its growth and adjust the stock to it with reliable suppliers.

Define rotation type

Along with demand forecasting, it is necessary to analyze how much time the goods spend in the warehouse until they are shipped, particularly if the product needs to be shipped well in advance. It is classified as high, medium and low.

Calcular plazos de entrega

Los plazos de entrega deben de ser los más cortos posibles para poder cubrir la demanda. Para conseguirlo, se debe mantener una comunicación eficaz con los proveedores, informando cualquier incidente presente y asegurando de que los pedidos lleguen a su destino.

Automate tasks

Today, a wide variety of tasks in logistics departments can be automated thanks to logistics software. To avoid stock-outs, there are 2 major groups of logistics software to consider for implementation: Warehouse and Transportation.

On the one hand, a warehouse management system or WMS can encompass several solutions that streamline and mitigate human errors such as stock management, picking route optimizer, among others. On the other hand, there is the TMS or transportation management system in which its modules can plan loads, carriers and routes in the most efficient way possible to reduce delivery times and costs.

Offering the customer alternatives

One of the most impactful consequences of stock-outs is the loss of customers, whether they are consumers or other companies that will look for another supplier. In this case, if you have an alternative item that meets the same needs, you can offer it to your customers as a possible solution.

However, the characteristics of the alleged replacement, such as its quality and its effect on profitability, must be taken into account. If high priced alternatives are offered, it may deter customers from purchasing it but still make a good profit margin. On the other hand, if a cheaper product is offered, profitability may be reduced and the customer may end up more dissatisfied with an item of lower quality than desired.

In any case, it is a matter of analyzing well whether it is possible to offer replacements depending on the sector in which you operate, the products themselves and the type of customers for whom the merchandise is intended. While you can deal with stock-outs almost immediately, the problem will persist if you do not detect the errors that cause stock-outs.

Conclusion

When a stockout occurs, there are few ways to provide an almost immediate solution, such as offering alternative items to the customer. Otherwise, if you act quickly, you can discover the reasons for the stock-out and start implementing good procurement practices to deal with a stock-out in the future.

At Hedyla, our logistics solutions are customizable, since you can add the modules you want to obtain a tool that will have all the logistics processes under control.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

When deciding to sell online, it is important to choose the distribution model that best suits the characteristics and needs of your business or company. Dropshipping and Crossdocking are commonly discussed. But how do we know which is the right option for our online store?

Here are the definitions of both types of logistic distribution to understand the differences between Dropshipping and Crossdocking:

Dropshipping

Dropshipping consists of a type of distribution in which all the distribution and transportation of the products is carried out by the supplier or manufacturer instead of the business that sells on its own behalf. It should be noted that it is a very popular distribution model among small e-commerce because of its accessibility, since it dispenses with warehouses and all the management and expenses involved.

Crossdocking

Crossdocking is a type of distribution where the supplier or manufacturer sends the orders to the same seller or to a distribution center to be delivered to customers. It is certainly a distribution model recommended for stores with small warehouses where they can prepare orders.

Once the types of distribution are known, you should take a look at the following points that mark the differences between Dropshipping and Crossdocking:

Logistics costs

Undoubtedly, the most economical model for the distribution of orders to end customers is Dropshipping because it is not necessary to have available space to store all the merchandise. And this is because orders are shipped directly from the supplier's warehouses to the end user, without the need to go through so many intermediaries, which means that they also take care of the logistics costs except for reverse logistics.

However, Crossdocking is also a relatively inexpensive system because of the short time shipments spend in your inventory. That is, once the order is received from the supplier, you go to a carrier to pick it up and ship it to the end customer. Although it takes an additional day for the package to arrive, the inventory holding costs are less than the cost of a warehouse to store the merchandise.

Agreement with suppliers

It is worth mentioning that each supplier has its own preferences in terms of the type of distribution it offers to merchants and businesses. In general, Crossdocking is the most accepted system by suppliers and the most compatible with a relatively high volume of orders and more variety in the e-commerce catalog.

However, this does not mean that there are several suppliers that ship using the Dropshipping model, which is especially focused on small online stores, but they are limited. In this regard, choosing one type of distribution or another depends entirely on the products themselves and the volume of orders received by the online store. 

Product error management

This is one of the most important aspects to take into account in the distribution model, since defects in a product will cause customer dissatisfaction. This can result in more expenses to process its return to the warehouse and in the loss of the affected user.

In the case of Dropshipping, it is not possible to perform a preventive review to ensure that there are no manufacturing defects in the item and that it is well packaged, since such measures are the responsibility of the supplier. Therefore, the only thing that can be done is to maintain an efficient communication with both the supplier and the customer to detect and find the best possible solution.

Crossdocking, on the other hand, allows control over the condition of the product, but depending on the type of product. In the case of indirect crossdocking, it is possible to unpack the products and detect defects beforehand in order to request a replacement from the supplier. On the other hand, if it is direct crossdocking, only the label on the packaging is changed and it is not usual to open the package, which means that the condition of the product remains uncertain until the customer receives it.

Order tracking

Similar to product defect management, order tracking in delivery and reverse logistics are handled by whoever makes the final shipment to the customer. In the case of Dropshipping, you can hardly have control over the status of the shipment and you must contact the supplier to facilitate the tracking of the package and inform the customer.

On the contrary, with Crossdocking it is the seller himself who receives information from the transport agency about his shipment and possible incidents. In this case, as a seller, you can hire the company that offers the most appropriate service and manage incidents smoothly without so many intermediaries.

Returns

As for returns, this is an issue for which the seller is fully responsible, regardless of the type of distribution, although there are certain exceptions. With Dropshipping, it is a factor that changes slightly depending on the vendor's return policies.

For example, the supplier can accept returns for broken or damaged goods, but the seller must pay the shipping costs. However, returns for item dissatisfaction are entirely at the seller's expense, which can be problematic to store without adequate space and manage many logistical costs.

Crossdocking, on the other hand, is the same seller together with the transport agency in charge of managing all the reverse logistics. As it already has a storage space, it is easier to manage returns if clear return policies are established and good decisions are made when looking for the best solution for the customer concerned. 

Conclusion

The differences between dropshipping and crossdocking are quite clear because one type of distribution does not require storage space, while the other does. To choose which is the best option for your company or business, you should take a good look at the size of your e-commerce, the types of products you sell, if your return rate is high, and so on. In addition to having a good shipping agency that optimizes your routes, it is a wise decision.

At Hedyla our software is based on artificial intelligence to study various processes, taking into account various parameters and constraints to choose the most optimized decisions possible in order to save costs and resources.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com