Skip directly to search

Skip directly to content

 

Modernizing the Shipping and Cargo Process

 
 

Transportation & Logistics Insights | Brian Estep |
05 April 2022

This Transportation & Logistics (T&L) Insights series is based on research by Levvel, who joined the Endava family in 2021. The team surveyed over 500 US-based companies who procure transportation and logistics services internally and externally to get their views on their challenges, needs, and use of digital technology solutions.

While companies often perceive technology innovation to mean things like high-end robotics, artificial intelligence, and fully autonomous vehicles, there are many elements in the supply chain that can be modernized without requiring great effort or cost, while still providing the competitive edge T&L companies are looking for. In this series, we will present current industry challenges and how digital technology can help reduce friction, enhance efficiency, and provide a better experience for businesses and their customers.

THE CURRENT STATE OF THE SHIPPING, CARGO, AND LOGISTICS PROCESSES

Digital tools are transforming the shipping and cargo process and creating new expectations when it comes to organization and efficiency. But new technology uptake has been uneven. According to our research, over 40% of companies are still hampered by their legacy methods, including the use of paper, phone calls, and fax machines to handle cargo reception and verification.

When cargo is shipped from a manufacturer to a warehouse, a driver hands over the goods to a consignee on site who is then financially responsible for the receipt of the shipment. That may sound simple, but it actually involves several transactions between the driver and facility management, including:

  • Choosing the dock to unload the cargo
  • Conveying that location information to the driver/carrier
  • Verifying the contents of the cargo and assuring it matches the details on the Bill of Lading (a document that includes the type, quantity, and proper destination of the goods) issued by the carrier
  • Securing the Bill of Lading for future reference and inventory
  • Unloading the cargo


These steps need to be accomplished quickly and precisely to keep the supply chain moving.

THE NEED TO REPLACE LEGACY METHODS WITH MODERN TECHNOLOGY

While technology such as electronic data interchange (EDI) systems, SAP, and other integration workflow engines can help streamline this process, most companies are still using legacy methods that are slow, costly, and prone to human error.

Problems start before the cargo is even en route: 13% of the companies Levvel surveyed said they have no visibility of what is being shipped until it arrives at the warehouse. Only around 25% of companies use specialized software to convey shipment information – with phone calls being the next most frequent way of communicating, followed by email, paper, and fax.

As you might imagine, paper documents easily get lost – or even forged! This makes planning, record-keeping, and the efficient use of warehouse space very difficult.

WHY CURRENT SHIPPING ISSUES REMAIN UNADDRESSED

There are two main reasons why such vital processes are still relying on decades-old methods of communication: cost and labor. Digital upgrades may, but don’t always, require a significant financial investment upfront. And they often involve upskilling workers in a labor force with a high turnover rate.

This helps to explain why even companies that have adopted some digital solutions have done so in a piecemeal fashion at best. Levvel’s survey found that a mere 27% of the participating companies use EDI systems, SAP, or other integration workflow portals to optimize data exchange throughout the supply chain.

Even crucial legal communications like the Bill of Lading – which acts as a title of goods – still exist in the form of a simple sheet of paper for most companies. Only 41% of those surveyed provide electronic versions of the single most important document in terms of ownership and liability.

OPTIMIZING THE WAREHOUSE RECEIVING PROCESS

Electronic Bills of Lading (eBL) are a good example of a digital upgrade that can increase the speed and accuracy of shipping and receiving cargo. An eBL system allows both parties to exchange information in a timely way that isn’t susceptible to paper forgery.

Yard Management Systems (YMS) are another tech upgrade that can make cargo reception more efficient. These systems enable facility managers to easily communicate with drivers before or as they arrive. Using text messages, drivers are directed to the appropriate unloading dock rather than relying on phone calls or pre-arrival paper instructions that can be delayed or changed at the last minute.

Read our other Transportation & Logistics Insights articles to learn more about how technology can help alleviate industry challenges.

Brian Estep

EVP North America & Global TMTR Lead

Brian is one of the founders of Velocity Partners. Following their merger with Endava in 2018, he took on the role of Head of Sales, TMTR. With extensive experience in technology, starting in 2000, and a bachelor’s degree in computer science, Brian has deep knowledge of software systems and lean/agile processes, which allows him to truly understand the needs of customers and design the best solutions for them alongside his team.

 

Related Articles

  • 17 May 2022

    Advantages of a Yard Management System

  • 19 April 2022

    Digital Automation in the T&L Industry

  • 05 April 2022

    Modernizing the Shipping and Cargo Process

  • 22 March 2022

    Current Challenges in the Transportation & Logistics Industry

  • 08 March 2022

    How to Digitize Warehouses and Distribution Centers

 

From This Author

  • 09 August 2022

    hi, I’m Brian Estep

  • 14 June 2022

    The Future of Supply Chain: What’s Next?

  • 31 May 2022

    The Future of Autonomous Vehicles in T&L

Most Popular Articles

IN-AI-ENABLE RIGHTS: DO WE HAVE THE RIGHT TO STYMIE THE DEVELOPMENT OF ARTIFICIAL INTELLIGENCE?
 

Insurance Insights | Kevin Crawford | 02 June 2023

IN-AI-ENABLE RIGHTS: DO WE HAVE THE RIGHT TO STYMIE THE DEVELOPMENT OF ARTIFICIAL INTELLIGENCE?

The Time Is Now to Start Thinking About Real-Time Payments
 

Payments | Monica Velez | 31 May 2023

The Time Is Now to Start Thinking About Real-Time Payments

An Anatomy of the Data-Driven Retail Supply Chain
 

Transportation & Logistics Insights | Jeremy Eaton | 25 May 2023

An Anatomy of the Data-Driven Retail Supply Chain

BNPL Regulation to Protect Consumers and Control Third-party Lenders
 

Banking | Annmarie Mahabir | 23 May 2023

BNPL Regulation to Protect Consumers and Control Third-party Lenders

How Offer and Order Management Systems Are Expanding The Aviation Business Model
 

Mobility | Joachim Zintl | 17 May 2023

How Offer and Order Management Systems Are Expanding The Aviation Business Model

Salut! I’m Adriana Calomfirescu
 

Meet the SME | Adriana Calomfirescu | 16 May 2023

Salut! I’m Adriana Calomfirescu

Hi, I’m David Boast
 

Meet the SME | David Boast | 15 May 2023

Hi, I’m David Boast

The Business Impact of Fan Engagement: How to Leverage Technology to Improve Loyalty
 

Innovation | Robert Milner | 12 May 2023

The Business Impact of Fan Engagement: How to Leverage Technology to Improve Loyalty

Staying Relevant – Why Merchants should Embrace Alternative Payment Methods
 

Payments | Steven Purton | 09 May 2023

Staying Relevant – Why Merchants should Embrace Alternative Payment Methods

 

Archive

  • 02 June 2023

    IN-AI-ENABLE RIGHTS: DO WE HAVE THE RIGHT TO STYMIE THE DEVELOPMENT OF ARTIFICIAL INTELLIGENCE?

  • 31 May 2023

    The Time Is Now to Start Thinking About Real-Time Payments

  • 25 May 2023

    An Anatomy of the Data-Driven Retail Supply Chain

  • 23 May 2023

    BNPL Regulation to Protect Consumers and Control Third-party Lenders

  • 17 May 2023

    How Offer and Order Management Systems Are Expanding The Aviation Business Model

  • 16 May 2023

    Salut! I’m Adriana Calomfirescu

  • 15 May 2023

    Hi, I’m David Boast

  • 12 May 2023

    The Business Impact of Fan Engagement: How to Leverage Technology to Improve Loyalty

  • 09 May 2023

    Staying Relevant – Why Merchants should Embrace Alternative Payment Methods

  • 02 May 2023

    How IoT is Changing Insurance

  • 26 April 2023

    A Veteran Game Developer's Perspective on Tool Development

  • 24 April 2023

    How Digital Ecosystems Enhance the Healthcare Experience

  • 21 April 2023

    Green machines: how tech can help companies hit Net Zero targets

  • 20 April 2023

    The Role of People and Technology in the Future of Underwriting

  • 19 April 2023

    Media 2030: Why Advertisers and Publishers Are Racing To Find New Strategies

  • 18 April 2023

    Alright, I’m Adrian Sutherland

  • 14 April 2023

    How Synthetic Data Could Solve The Patient Privacy Dilemma

  • 11 April 2023

    Payments makes the world go round! How banks can get creative

  • 06 April 2023

    Higher Fidelity: Good Outcomes and Harnessing the Challenge of FCA's Consumer Duty

  • 05 April 2023

    AI in Pharma: How Machine Learning is Revolutionising Every Step in Drug Development

  • 04 April 2023

    Hello! I’m Leane Collins

  • 31 March 2023

    The Dos and Don’ts of Successful Carve-Outs in Private Equity

  • 30 March 2023

    Cage of Reason: FCA's new Consumer Duty heralds the rise of the 'Reasonable Insurer'

  • 28 March 2023

    A legal view on the ownership and future of AI-generated works

  • 24 March 2023

    Championing Women in Tech

  • 23 March 2023

    5 Ways Capital Markets Firms Can Ensure Resilient Operations to Improve Credibility and Efficiency

  • 15 March 2023

    Buenas! I’m Leticia Chajchir

  • 14 March 2023

    4 Ways to Improve Customers’ E-Commerce Search Experience

  • 28 February 2023

    4 Healthcare Innovations That Can Benefit People and Profit

  • 21 February 2023

    Hey, I’m Lewis Brown

  • 17 February 2023

    Top Considerations for Financial Services Providers Entering the Cross-Border Payments Space

  • 13 February 2023

    Better Together: Harnessing the Power of Digital Ecosystems

  • 09 February 2023

    What to Include in a Customer Re-Engagement Content Library

  • 07 February 2023

    Supercharging Wealth Management with Hyper-personalisation

  • 02 February 2023

    How Innovating the Insurance Customer Journey Creates a Competitive Advantage

  • 30 January 2023

    G’day, I’m David Marsh

  • 26 January 2023

    Empowering Underwriting and Unlocking Revenue with Legacy Insurance Data Sets

  • 24 January 2023

    Four Stakeholders Who Win the Most When Healthcare Innovates

  • 23 January 2023

    Journey to the Centre of the Cloud with AWS – Part 3

  • 20 January 2023

    Journey to the Centre of the Cloud with AWS – Part 2

  • 18 January 2023

    Journey to the Centre of the Cloud with AWS – Part 1

  • 17 January 2023

    The 4 Most Common Mistakes in Retail Site Design

  • 13 January 2023

    Boost and bolster your innovation. Three tips to help get it to the next level.

  • 10 January 2023

    5 Questions in Smart Energy That Will Define the Net Zero Transition

We are listening

How would you rate your experience with Endava so far?

We would appreciate talking to you about your feedback. Could you share with us your contact details?