In recent years, the general public has become more aware of the role of an efficient supply chain because of the many challenges it has faced: high logistics costs, staff shortages, stock-outs, etc. In the face of uncertainty and a changing landscape, the supply chain must adapt and streamline its operations to continue to provide good service.

In this section, we will show you ways to streamline the supply chain to start implementing in your strategy:

Outsourcing logistics services

Although it is true that logistics operations are better controlled if these resources are internal, in many cases it is a high cost. Therefore, it is best to leave logistics management to other companies and professionals who are experts in the field, i.e., to outsource.

This decision involves a rigorous analysis of the logistics companies and logistics operators with which you want to collaborate. It is also essential to have a strategy of negotiations and agreements with suppliers to obtain their services at the best price and with a good lasting relationship.

Pues la Improving relationships between logistics partners is one of the most important strategies for mitigating risk, according to a study by Deloitte Insights. It is certainly one of the "easiest" ways to streamline the supply chain, which is why most companies have their logistics services outsourced.

Automating the supply chain

Traditional supply chain management methods and technology usually do not keep pace with the changes in the industry and in demand and supply, which usually require streamlining the supply chain. By automating all or a large part of the supply chain, you can greatly speed up and streamline processes and minimize human error.

There are several ways to automate the supply chain, and it is not only about robotization, but also about applying technological tools that help us in the management and control of one part, such as the TMS. This solution makes it possible to manage and monitor decentralized operations and verify that both parties, whether they are customers or suppliers, are complying. In addition, an updated tool has more flexibility with more customized orders and their respective restrictions.

Standardize processes

Supply chain management is usually slowed down by delays and unnecessary tasks if good practices are not being applied. Process standardization is there to simplify and solve the most common problems within the different parts of the chain.

Through standardization, unnecessary tasks and delays within the supply chain can be minimized and efficiently streamlined. However, it also requires that personnel be kept up to date with training and education on the new strategies and operations that are being implemented.

Segmenting demand

Undoubtedly, demand planning is an indispensable action to meet customer demand and avoid stock-outs. But, just as strategies are established in other departments by segmenting by ideal customers with different demographics and geographic locations, the supply chain must be segmented as well.

This is because the supply chain can be segmented by demographics, products, geographic locations, among others. For example, with an analysis of demand metrics, you can find out what type of product is most popular in a particular geographic area and focus your strategy on reorganizing the distribution of stock by these most sought-after areas.

Improving inventory, warehouse and transportation management

There are several ways to implement improvements to logistics processes when necessary, such as hiring experts and consultants, infrastructure upgrades, planning, among others. Today there are logistics tools and solutions tailored to the size and sector of a company that streamline and improve the performance of a part of the supply chain, such as inventory, warehousing and transportation.

First, identify the supply chain needs such as the type of transportation and analyze the types of logistics software that address these requirements. Then, it should be implemented along with the company's existing ERP integrations and start planning, allocating, communicating and tracking using best practices and with the help of that logistics solution.

It is worth noting that these types of solutions usually come with traceability, monitoring and analysis tools, thus providing transparency in observing performance and further improving supply chain agility.

Conclusion

The role of the supply chain for a company is vital to its economic activity and progress. In an environment where there is more and more digitization and professionalization in the supply chain to meet the current needs of the industry, there are now more resources to streamline the supply chain while respecting the constraints or characteristics that your industry has.

At Hedyla we offer logistics solutions that can be easily integrated and applied to other ERP systems already in use, with seamless data sharing between platforms.

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

This translates into a supply chain that is less pressured by the bottleneck generated by a peak demand originally focused on a single day. However, there is a key element in peak demand strategies: reverse logistics due to the nature of the purchases and their expected high volume of sales, of which another large number of returns are expected after the holidays.

If you want to know the important points of reverse logistics on Black Friday and other demand peaks, take a look!

Packaging damage

According to this DS Smithstudy, it was estimated in 2021 that e-commerce shoppers would receive more than 14 million damaged and spoiled products and 64% of online shoppers had already claimed to receive their purchase in poor condition before. This results in a high volume of merchandise returns, especially if the price is more than 25 euros, and high consumer dissatisfaction.

This problem can be avoided without much mystery by applying the right packaging for each product or order. Either choosing the right package size without being unnecessarily bulky, applying suitable protectors for them and closing the box properly avoiding spaces that can be opened. Besides it is necessary to avoid overpacking because, sometimes, it turns out to be more counterproductive for the protection of the article and generate more waste of materials.

It should be noted that staff must follow instructions on how to handle packages, as quick but careless handling could cause knocks and damage the item. In addition, not all products are eligible for return because, if the shipping costs turn out to be higher than the price, it is decided not to take the package back to the warehouse and, instead, alternatives and compensation are offered to the affected customer.

Package delivery failures

In some U.S. states such as California, Black Friday has been declared a holiday, while in most countries it is a working day. However, in the event that the offers are extended days or weeks before, customers are more often absent from their homes, which means many failed deliveries that must return to the warehouse and one of the great challenges of reverse logistics on Black Friday.

Entre las opciones más populares frente a este inconveniente más común de lo pensado es el click & collect, otorgando al consumidor de recoger su pedido cuando pueda. También otra alternativa es entregar las compras en lockers y en puntos de entrega como oficinas de correos, especialmente en el caso de e-commerce sin tiendas físicas o marketplaces. Sea cual sea de estas opciones, evitan directamente la devolución del paquete por parte del repartidor y, por lo tanto, más intentos de reenvío que supone más gastos de transporte.

Free returns and Bracketing

The bracketing is a trend that has emerged in recent years in which customers buy online the same product in multiple colors or sizes and then keep one and return the rest. Although this behavior emerged from retail giants offering free returns and convenience to the consumer, the reality is that it is a headache because of the high costs involved in returning the product suitable for sale, from transportation to reintegration into stock.

And times such as Black Friday are not exempt from this behavior because, according to UNO Logística, return rates are 24.5% and increase between 5% and 10% in times of high sales volume.

To this end, solutions are already being implemented to mitigate the financial and environmental impact of a high volume of returns. The simplest and most popular option among large retail companies is to offer free returns in the physical store, although others are opting to drop free returns and start charging for them according to their own policies. Even artificial intelligence can help to study the cases and decide whether or not to return the product based on its profitability. 

However, there are other measures that prove to be more drastic on the part of the consumer, for example, not allowing returns as in the case of small e-commerce that cannot afford to have the item returned. Even some industry giants such as Asos and Amazon have implemented blacklists of consumers prone to bracketing to disallow free returns.

Conclusion

Reverse logistics in itself is already a major challenge in terms of managing costs, resources and even environmental impact. At a time when offers and other conversion strategies are increasing a (dwindling) number of impulse purchases, so too will returns and therefore reverse logistics management. Consequently, a TMS will enable efficient and visible transport management, even in the most tricky moments such as rejects and returns.

At Hedyla we understand the importance of providing optimal customer service, as well as reducing costs, which is why our solutions come with built-in communication and incident reporting tools for any situation that may arise, whether it is a failed shipment or a return.

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, TMSs are thought to be a product exclusively for large companies with huge fleets because of their sophistication and complexity. But, nothing could be further from the truth, any company that manages its supply chain and operates with a transportation fleet has the need to install a digital control tower for cargo operations.

If you want to know the advantages of managing your fleet with a TMS, take note!

Allows you to organize the company and grow with it

Thanks to the ability of a TMS to collect all the necessary information about your fleet, your customers and your orders, it is now possible to unify all the data in one place. This eliminates the need to go through calls, messages, e-mails and paper documents to check the accuracy of accounts, which wastes too much time and resources.

Therefore, apart from the ease of successful operations, it is also much easier to collect the KPIs applied to your monthly, quarterly and even annual targets and act on them. In addition, thanks to better communication and customer satisfaction, it allows the company to grow and adapt to the volume of demand, because it takes just a few steps to add new vehicles and new hires to the TMS database.

Avoid unnecessary calls

Usually, to carry out the transportation of an order, either to get it to the distribution center or to the end customer, a team member is needed to make the calls to the shipper and the broker to check the availability of the freight and agree on a rate. With this action, too many time and financial resources have already been invested that may result in the freight not being available or not being dealt with by the people involved.

However, the TMS automates this entire process, as the system collects information about the available fleet and sends this data to customers in very few steps and time invested. In this way, time is spent on other tasks and relationships with shippers and intermediaries are improved, and they are eager to return to your services because of their effectiveness.

It is worth noting that shippers are looking for their automated processes to adapt to the automated processes of third parties, as they want to leverage their investment in a TMS and would be burdened by doing business with a logistics operator that does not have one.

Perfect complement to fleet management software

Usually, people interested in digitizing their transport logistics operations often wonder what is the difference between a TMS and a fleet management software, as both terms may seem confusing at first. For this reason, we will outline the main differences between managing your fleet with a TMS and controlling it with fleet management software.

Por un lado, un software de gestión de flotas se centra en digitalizar la administración de los vehículos y su control de seguridad, la comunicación entre personal y cliente y la visibilidad del pedido mediante la geolocalización.  Por otro lado, un TMS otorga la posibilidad de administrar, planificar, ejecutar y postprocesar todas las operaciones logísticas, ya sea asignar pedidos, preparar facturas y documentación, etc.

As you have seen, both functions complement each other and provide greater control over various aspects of transportation and operations. Of course, these tools can be more useful, according to the needs of your fleet and your processes, so you should consider whether a fleet management software or a TMS is your best option.

Can be adapted to the constraints and sector of the company

As mentioned above, there is a belief that managing your fleet with a TMS is only within the reach of large, industry-leading companies. While it is true that a TMS can provide more complex and large-scale functionalities for international companies, it is also possible to adapt to a smaller fleet and a smaller order flow.

For example, there are TMS that support multimodal and intermodal transport, i.e. transport that requires other modes of transport such as sea, air and rail and/or shipments that require more than one carrier and one contract. For this reason, the complexity of these modes together with the internationalization of these as invoices with different currencies makes a TMS an essential tool to be able to manage and have control over all operations. However, an SME or medium-sized company will not need such a complex system and can study which options it wants and which others can be discarded.

Conclusion

The advantages we have all heard about managing your fleet with a TMS consist of time and cost savings, performance control and improved customer satisfaction, among others. However, the TMS goes a step further and assists in the digitization of a sector that is more than necessary as the logistics and distribution industry is becoming increasingly complex and competitive with its current challenges.

Not to mention that improved transportation management is not exclusive to logistics giants, but is also applicable to any size fleet and order volume. Especially considering that it is estimated that only 20-35% of companies have a TMS in place.

At Hedyla we are attentive to the latest developments in the sector, so we provide the most demanded logistics solutions in the industry and adapted to any restriction and size of the company or fleet. 

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

More and more companies have already implemented electric light vehicle management, promoting sustainability and last mile capillarity. However, how can you have control over a fleet of motorcycles and bicycles? Does it differ much from a conventional fleet of trucks and vans?

If you are curious about the following points to keep in mind when controlling a fleet of light vehicles, take a look!

Define a fleet management strategy

Like any logistics fleet, such a fleet requires a good strategy in its respective document in order to be in line with the needs and other business strategies. In particular, if one takes into account objectives such as the sustainability of the activities for which an electric light vehicle management can grant.

It should be noted that a fleet strategy must be connected to the fleet policy, which establishes everything that can be covered by the strategy, both its objectives and the rules to be followed by both the personnel involved and the drivers. Consequently, it is essential that all the organization involved in the fleet participates in the realization of the strategy so that the strategy is defined in a realistic and well realized way.

Automate routine tasks

Fleet management (and, for that matter, electric light vehicle management) is known to have very tedious tasks and optimizing time and cost savings is paramount to improving the efficiency of the process. These include paperwork, MOT, fines, regulatory compliance and supplier cost invoices, and so on.

Therefore, the automation of manual processes is an almost essential step because of the numerous benefits it provides. Among its advantages are reducing the number of unnecessary tasks, going paperless, creating the possibility of analyzing data collected from operations and improving the use of human resources.

Connection of vehicles

The vehicles of any fleet generate a significant amount of data that can be monitored to be key pieces in making decisions to improve the strategy and cut costs. That said, it is an essential step that all light electric vehicle management is connected through hardware such as an OBD that gives you the information you need to know the status of the fleet itself and make resolutions in near real time.

By connecting and collecting data about your fleet of light vehicles, you can track in real time, reduce visits to the mechanic, save fuel and, above all, greatly improve customer service through improved communication. 

Accident prevention

Looking at the amount of valuable information you can get about your electric light vehicle management can be of great help in preventing one of the most important and difficult to avoid problems: accidents. Especially when it comes to light vehicles, because they are more unstable and have fewer regulations than heavy vehicles.

It is very evident that accidents cause great inconvenience, not only in terms of delay and/or damage to the goods, but also in terms of health and reinstatement of the affected drivers. Therefore, the correct monitoring of data that can alert to the danger of an accident together with a rigorous MOT inspection and correct maintenance can considerably reduce the likelihood of incidents and save on notably costly expenses.

Conclusions

As we have seen, the management of light electric vehicles is carried out in a similar way to that of a conventional fleet, but with certain differences. The first of these is that it opens up the possibilities of expanding last-mile distribution thanks to its reduced volume to enter narrow streets. On the other hand, special attention must be paid to their fragility, since bicycles and motorcycles are severely impacted by adverse weather conditions such as rain.

It is worth mentioning that studies have confirmed that a combination between light vehicles and a delivery van achieves better results in terms of transport cost savings and customer agreements than with bicycles and/or motorcycles alone.

At Hedyla we adapt to one or more particular sectors in which a company operates and offer customization and adaptation of our software to meet those specific 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

It is known that 82 logistics parks have been opened in Spain in the last 2 years, which is a remarkable number considering the impact of the e-commerce boom. However, what strategies are companies taking into account to locate their activities in certain logistics centers? If you want to know them, take a look!

Product features

This is one of the most important factors in warehouse location, as the product to be sold or distributed is at the heart of the business model, whether B2B or B2C. However, several components of the goods such as durability, intrinsic stability and manageability must also be taken into account.

Durability is a fundamental aspect when it comes to fresh goods where they are to be consumed soon after purchase such as foodstuffs. While intrinsic stability is a relevant factor for chemical products where mishandling can cause health problems, so they are safer, being stored only at their production plant and points of use. Handling is also an important point for bulk liquids and aggregates because it is not convenient to store them in many places and transfer them until they are already packaged. 

Production capacity

Another aspect to be taken into account in the location of warehouses is the storage capacity, which is in proportion to the amount of manufacturing and/or imports by suppliers. But it is not only a question of focusing on volume, but also of paying attention to other factors such as the degrees of transformation.

The degrees of transformation classify goods on the amount of processing required to become the manufactured product they distribute (which may not necessarily be destined to the final consumer depending on the business model). A product with a low degree of conversion is usually one that needs only to be packaged and/or processed such as fresh goods. While an item with a medium or high degree of modification are those that go through many or many developments and changes to make them suitable for sale such as industrial materials, so it might need several warehouses for the raw materials involved in manufacturing.

Finally, it is known that a distribution network is mainly composed of the following three characteristics of the warehouses: the number, location and types of warehouses. Keeping these aspects in balance in order to be as profitable as possible is not at all simple because of the tedious planning involved, apart from the fact that there are two important factors to take into account: the composition and the distribution in the marketing network.

Type of business

It makes sense to think that the location of warehouses should be as close as possible to the consumption points in order to shorten distances and save time and money. However, this statement does not apply in all cases, depending entirely on the objectives of the warehouse.

For example, in the case of factories, proximity to points of sale is not such a key factor because that is the job of distribution warehouses, but it is better to be close to available and affordable labor. Warehouses with parcel services, on the other hand, are more efficiently located in urban hubs or in logistics parks close to highways to reduce delivery time.

Price of land, building, equipment and facilities

Undoubtedly this is one of the most influential when choosing locations for the construction, purchase or rental of warehouses because its investment is very high, both its fixed and derived costs. In addition, special attention must be paid to the economic costs and commercial expenses that influence the respective location of the warehouses.

Economic costs refer to those that directly influence the purchase of land, building permits and the price of labor to build the warehouses, among other aspects. While commercial costs are those that are maintained over time during its activity, such as the cost of vehicles and TMS used, the distances between suppliers and distribution points, and competitive warehouses.

Conclusion 

Looking at the current scenario regarding the boom of sectors such as e-commerce and the opening of many logistics parks in recent years, we can see that there is a "fever" for the acquisition of new spaces and for the location of warehouses. However, the whole strategy and all the aspects to consider in the location of warehouses makes your choice to buy or rent a warehouse is not a simple task and is a well studied decision in most cases.

At Hedyla we understand the importance of having a good distribution network that is properly executed and we offer tools to help improve your 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

Looking at this panorama, it can be stated that it is an industry that employs more than 950,000 people, a very attractive figure for people who wish to start or change their professional career. But, specifically, what are the professional profiles in logistics, and is any specific training required to be able to exercise these professions?

If you are interested in knowing the details of the most in-demand logistics professional profiles, take a look!

Warehouse handler

Undoubtedly, this is the most sought-after profile in the logistics sector. Their tasks are based on assisting in the loading and unloading of trucks, checking and ordering merchandise, controlling the stock of products, preparing them and keeping the warehouse register up to date.

These professional logistics profiles require a minimum of compulsory secondary education. However, there are specialized training courses such as forklift or warehouse handler that help to have a solid foundation for the job performance and improve the curriculum. Not to mention the physical ability to move heavy objects from one place to another. cursos de formación especializados como la de carretillero o la de mozo de almacén que ayuda a tener una base sólida para el desempeño del trabajo y mejoran el currículum. Sin olvidar que se debe poseer la capacidad física para mover objetos pesados de un lugar a otro.

Forklift operator

The second most sought-after profile in the sector is the warehouse foreman. These are people who handle forklifts and are responsible for receiving, placing heavy packages on pallets and preparing orders and packaging.

Despite what the name suggests, the professional is not only focused on a specific task. In the case of forklift operators, they perform other complementary tasks such as reviewing delivery notes. In order to access this position, it is required to have passed the ESO and to undergo forklift training to be able to handle the machinery.

Delivery person

This is probably one of the professional logistics profiles that has gained much relevance in recent years due to the considerable growth of e-commerce. The delivery driver is in charge of getting the goods to their destination, as well as planning the most efficient schedules and routes. This task can be much easier if a route optimizer is used.

Además de eso, también organiza la mercancía de su furgón y  se comunica directamente con los clientes, poseyendo cierto perfil de vendedor. Para poder ejercer como tal, se requiere el carnet de conducir tipo B, poseer su propia furgoneta y tener toda la documentación en regla para ser autónomo.

Warehouse Manager

Within management positions, this is one of the most sought-after professional profiles in logistics. Typical tasks include coordinating incoming and outgoing goods, controlling warehousing and supervising the preparation and loading of vehicles.

Como se ha podido observar, es un puesto de responsabilidad en el que su objetivo principal es minimizar los errores y mantener el control del inventario. Para poder desempeñar este trabajo se suele  pedir un grado en Logística, Gestión de Cadena de Suministro, Administración de Empresas o similar. Además de que tengan conocimientos técnicos de software de gestión de almacén y bases de datos.

Logistics Administrator

This is one of the logistics professional profiles most influenced by the digital transformation of the industry due to their ability to manage and plan various logistics processes. Their tasks include organizing packages, monitoring stock, scheduling shifts for vehicles and carriers, preparing shipment documentation and accurate order tracking.

As you have seen, a logistics administrator needs to have knowledge of logistics and transportation management software. Not to mention the usual administrator skills such as office automation and basic accounting. For this, a degree in Supply Chain, Logistics, Business Administration or similar is required.

Procurement Manager

This is a key member of the team to make logistics operations profitable, because its main mission is to choose and negotiate the best prices with the company's suppliers, agree on supply conditions, control inventory and have the necessary documentation ready.

This profession undoubtedly has a business profile with some administrative tasks and acts in accordance with the company's values and for the benefit of the company. For example, if they are committed to sustainability, their tasks will consist of finding green suppliers. To be able to access this position they recommend having a degree in Logistics, Supply Chain Management, Business Administration or similar, apart from knowing how to handle supplier and third party management software.

Supply Chain Manager

This is a somewhat unknown profession until now, as it stands out for having the highest professional projection and being well remunerated. These specialists are in charge of managing and organizing all the procurement, production and distribution of goods of a company for its customers.

Este es uno de los perfiles profesionales más importantes del sector porque son los encargados de gestionar toda la cadena de suministro de la compañía, desde las materias primas hasta la distribución de última milla llegando al cliente final.  Otra de sus funciones es supervisar y entrenar al personal, especialmente a la hora de implementar nuevos software de gestión.

The requirements to become a Supply Chain Manager are to have a degree in Logistics, Supply Chain or similar and to have technical knowledge of software such as SAP and ERP. It is possible that in some cases a master's degree in Supply Chain Management is required.

Conclusions

It is clear that the logistics and transportation sector is booming and hence more and more specialized profiles are required in each of the supply chain functions. In addition to the fact that knowledge of various specific software is often requested due to the increasing digitization of the industry, which turns out to be very necessary.

At Hedyla, we are attentive to the changes and demands of the logistics industry, therefore, we offer advice on the application of such digital tools.

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

Looking at how demand has grown in recent years, it is no longer enough to manufacture and distribute toys with his sleigh alone. The logistical processes have become increasingly complex and demanding, so Santa Claus has an army of elves and reindeer ready to facilitate such complex logistics management for Christmas.

From raw materials

When Santa Claus has an idea in mind for a new toy, he works with the development department to get the product into production. He makes sure that the elves get the raw materials they need for manufacturing thanks to his good relationships with suppliers.

To fullfill this, the materials travel through a complicated network of logistics from the time they are mined for processing in a factory and so on until they reach the hands of the elves, who make the final product. In addition, their magical staff has a warehouse for all those goods used for the manufacture of toys.

Inventory storage

From raw materials to toys ready to be shipped, all this inventory must be stored in their respective warehouses. There all the items are packed, sorted and well ordered so that they can be easily located in a warehouse as big as Santa's.

Thanks to the latest technological advances, Santa Claus has not hesitated to automate the ordering systems and to optimize the stock databases in order to have total control over the inventory and avoid stock-outs.

Warehouse operating processes

When one of the thousands of warehouses Santa Claus has all over the world orders a certain amount of toys, the elves in charge of the warehouse get down to work. First they check the available stock, locate the order and pack it carefully so that the products are not damaged in transport. For this, a picking optimizer proves to be very helpful in locating the inventory quickly.

Not all toys are packaged in the same way. There are certain products with very fragile parts that require a lot of protection inside the box and instructions for the reindeer to handle them with care.

Distribution transportation

Whether it is to be delivered to its final consumer (last mile) or to reach another distribution point, Santa Claus strategically chooses the transportation to be used, the available weight per vehicle, the assignment of their respective drivers in charge, among other things.

As exports are increasingly in demand, Santa Claus can no longer do it on his own with his sleigh, but must rely on his reindeer handlers to handle one of the most complicated and important operations in Christmas logistics.

Route planning

To ensure that all toys reach their destination as quickly and economically as possible, Santa Claus leaves the planning of routes from the point of departure to their arrival in the hands of his reindeer. In addition, he takes into account many factors such as the required delivery times, the working hours of the carriers, and other aspects. This is where a route optimizer plays a key role.

At the time of transport, a very effective communication is maintained to be aware of possible inconveniences encountered along the way and to let you know if the delivery has been successfully completed. This situation is crucial to ensure the happiness of the future owner of the toy through the logistics for Christmas.

Conclusion

The logistical process that Santa Claus has to carry out before the long-awaited day is extremely large and each year has become more complicated. Fortunately, Santa Claus has been gradually improving operations and has been hiring many more elves and reindeer more specialized in operations and also using new technologies to optimize logistics for Christmas.

At Hedyla we want to take a cue from Santa Claus and also want to optimize operations to take Christmas logistics to the next level.

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

First of all we should know the causes of these high costs and how with digital technologies we are going to solve them.

1. High fuel costs. Minimizing fuel consumption is a priority in fleet management, since it is estimated that 20% of the total cost of the fleet comes from fuel consumption.
2. Vehicle maintenance. A correct maintenance of the fleet is a must for every company. To carry out the periodic revisions, to adopt security systems for the vehicles or to control and to solve any problem observed by a driver would be a good practice for any company, but unfortunately the lack of control in this area derives in an increase of costs of the management of fleets.
3. Reckless driving and/or accidents. Reckless driving increases the probability of an accident and also the maintenance costs of vehicles, which suffer greater wear and tear.
4. Costs that are unpredictable or difficult to control. Costs such as fines to drivers or fines for not having passed different vehicle inspections, even fines from insurance companies for irresponsibility on the part of carriers. Time lost in traffic jams or due to drivers' medical leave or time spent on vehicle inspections are just a few examples of costs that directly affect a company's fleet management.

"Control the geolocation of your fleet in real time via GPS for routes in progress. Make decisions about unforeseen events or emergencies by assigning tasks and diverting the vehicle with the least impact from its route."

When the time comes, we ask ourselves, how can I reduce costs in fleet management?

Intelligent solutions are here to stay and thanks to them we will not only be able to optimize much of the work but also to reduce the costs produced by it.

1. Monitoring of vehicle fleet control activities. Among these activities we highlight fuel usage, as it is one of the activities that most increases costs for a company. We can also obtain reports on mileage and performance, including the driver who offers the best performance in fuel consumption.
2. Vehicle fleet maintenance control.  Controlar que se están realizando las revisiones para el mantenimiento adecuado de los vehículos permite evitar averías y es garantía de un buen funcionamiento de los vehículos. Si queremos evitar costosas reparaciones debemos llevar un control adecuado de la flota.
3. Route optimization. Using a route planning and optimization system also helps to save costs. These systems help you to drive fewer kilometers and save on fuel. All this has an impact on reducing costs in fleet management.
4. Increased efficiency in fleet management. Using fewer vehicles for the same service or renewing the fleet at the right time is also possible with fleet management software. 

Now you know how you can reduce costs in fleet management and the benefits it brings you by using intelligent solutions. It's time to take a step further to position your company as a leader in the industry and ask yourself if you dare and want to take your logistics to the next level. At Hedyla we will be happy to explain how to do it and offer you the solutions to make it happen.

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Multimedia Technical Engineer.  Working 11 years in the Audiovisual and Communication Department of a multinational company. Responsible for the Marketing and Communication Department in several companies in the technology sector.

Designing digital strategies. Innovating and adding value to communication.

Logistics is complex as it integrates a multitude of activities with many actors involved. Likewise, logistics has a great connection with the rest of the company's activities and, therefore, is affected to a great extent by decisions and situations derived from other factors that are not properly logistical, such as sudden changes in demand, new products launch or expansion to new territories, among many other examples.

The digitization is currently a key aspect for the future of companies of all sizes. However, the complexity of logistics mentioned above is also visible in the variety of types of software for logistics, or that have a direct relationship with it, for example systems for supply chain management or company management (ERP).

In addition, each type of software also has notable differences from others that are in exactly the same category. Therefore, it is necessary to go beyond the category and see the functionalities that each system offers to know exactly whether or not it adjusts to the needs of each company.

This article has compiled the most relevant type of systems that exist in the market, highlighting in some cases the functionalities that, in some cases, we can find integrated into other systems or as standalone products.

Global software

Here you can find a list of global systems for any company that are somehow related to logistics:

• Enterprise Resource Planning (ERP): takes care of the internal operations of a company that can range from production to distribution. In an ERP, the processes are automated, different databases are integrated into a single program and all the information is centralized on the same platform. The most common functionalities of these systems are purchasing, sales, billing, accounting, inventory, human resources and CRM.
• E-commerce platform: with the rise of electronic commerce, this type of platform has become a very common tool to manage the online catalog of products, online sales and payments.

• Demand forecasting: software typically based on artificial intelligence that helps forecast demand and thus optimize supply. Obviously it is a fundamental aspect to design and estimate resources required for logistics operations.
• Contract management: allows you to digitally manage the creation, negotiation, signing and renewal of legal contracts. Although it is not strictly a logistics software, it is a very clear use case, since the legal documentation generated in logistics activities is very extensive.

If we focus on the supply chain, we can find the following programs:

Supply Chain software

• Supply Network Design: allow modeling all flows from manufacturing to final delivery. In general, it allows simulating variations in demand to see how the entire supply chain would behave, as well as in more advanced cases, the possibility of searching for new locations for factories or warehouses.
• Control tower: it offers a global vision of the supply chain in real time and, in turn, allows actions to be taken to modify or activate processes at the right time. The main difference with a dashboard is that in the case of a control tower, in addition to supervision, concrete actions can be taken to make changes in the operation.
• Digital Twin: this module provides a simulation of a physical asset, fully digitizing the resources and behavior of a physical process. This allows you to monitor the performance of the asset in real time and thus simulate the performance to be able to predict, for example, possible maintenance needs.
• Planificación de ventas y operaciones (S&OP): solution that allows aligning sales plans with company operations. Typically for manufacturers, it allows to create a unified plan for forecasting sales and the needs derived in logistics.

Logistics software for transportation and distribution

Centrados ya en lo más esencial de la logística, vamos a ver distintas soluciones y funcionalidades para gestionar tanto el transporte de larga distancia como la distribución o reparto de última milla:

• Gestión de flotas (FMS – Fleet Management System): control and monitor the fleet of vehicles. In general, it allows you to track the location of each vehicle, manage documentation, fines and analyze driving efficiency.
• Tracking mobile app for drivers: complete traceability of the delivery process, incident management, digital proof of delivery and a series of functionalities that allow real-time information regarding the deliveries in progress.
• Last mile route optimizer: automatic route planning for the last mile. It helps to reduce the kilometers traveled, improve delivery capacity, reduce costs and increase margins.
• Delivery tracking for customers: permite al cliente final conocer el estado de su entrega en tiempo real como el día y hora estimada de entrega, ver si existe cualquier tipo de incidencia…

• Load planner and optimizer: planning of medium and long distance routes, taking into account the location of the carrier, information from the tachograph, type of vehicle and load, in order to assign each load to the most appropriate vehicle.
• Freight Forwarding: cargo management by air, sea or train. Allows you to manage legal documentation and assignments. 
• Parcel shipping management: management of the assignment of deliveries to parcel companies. Very common in e-commerce.
• GPS and digital tachograph: real-time location via GPS and remote download of tachograph information.
• Vehicle and IOT sensorization: allows collecting more advanced and specific information about vehicles: some examples may be temperature control, or door opening.

 Logistics software for warehouse management

Finally, a WMS helps manage the activities and operations of a warehouse. Here are some of the modules that can be found:

• Stock management: this module allows you to control and monitor the inventory, allowing you to know the available stocks at all times.
• Reception and dispatch: helps to manage and control the products that arrive and leave the warehouse.
• Storage location management: the use of spaces and the location of items according to their rotation and other characteristics is essential for the proper functioning of a warehouse.
• Gestión del trabajo del personal (LMS – Labor Management System): allows collecting data on the activities carried out by operators and analyze productivity. In addition, it helps planning the necessary resources based on historical or desired productivity.
• Picking routes optimizer: this software allows you to find the best routes within your warehouse. Optimal routes are automatically generated in real time and assigned to specific warehouse operators. It allows you to compare the routes taken with the optimal ones and thus discover bottlenecks.
• Automatic assignment of activities: this module allows you to organize and optimize activities by time, distance or other existing restrictions. Avoid human planning and decision errors and predict and identify operational irregularities.

Andreu Araque

Co-Founder & CEO at Hedyla

Telecommunications Engineer with more than 10 years experience managing development teams and the B2B market, adding value to big corporates from different industries like Fintech, Travel and Logistics.

Expert in analysis and data visualization.