Beyond Deliveries: How Logistics Innovation Drives Business Success

Many experts believe that sales is the primary driver of business growth. While sales is indeed crucial, there are numerous other factors that play a vital role in revenue generation. One such critical factor is logistics. Often considered the backbone of industries, logistics enhances sales through the consistent and reliable delivery of products to the right place at the right time.

The perception of logistics has evolved significantly, now being recognized as a key component of business systems rather than just a delivery mechanism. Despite advancements in digitalization and the Internet of Things (IoT), logistics still faces numerous challenges. Even with aggressive digital diversification, many strategic and practical customer needs remain unmet and require appropriate tools combined with expert human intervention to address them effectively.

Currently, we employ a variety of digital tools and tracking systems, including route optimization tools, GPS, various tracking systems, Transportation Management Systems (TMS), Power BI, and more. Despite these advancements, there remains significant potential for the development of emerging tools tailored to specific customer needs.

TIME-CRITICAL

In industries such as baking, timing is crucial for maximizing sales. If demand is not met promptly, competitors quickly fill the gap. This is where logistics plays a vital role by ensuring consistency and reliability, thereby boosting sales. Tracking inputs and outputs derived from digitalization helps us find real-time solutions, such as monitoring the time finished goods are received by each distributor, their departure times, and subsequent deliveries. This process involves creating geofencing and analyzing the resulting data.

MAX CUBING

Beyond consistent deliveries, another critical factor for profitability is calculating logistics costs in compliance with delivery requirements. Maximizing vehicle utilization, or “max cubing,” is essential. Digitalization helps determine the maximum utilization of each vehicle at every point, distributor, and interval, marking the beginning of a new era in cost optimization and operational sustainability.

Logistics is renowned for its commitment to timely vehicle operations to meet distributor demand. My team and I have been working with various digital platforms and IoT solutions to create customized solutions. Despite these efforts, there remains a significant gap between existing tools and customer needs. This gap underscores the substantial scope for further digitalization in logistics. There is a pressing need for a unified platform to address the myriad problems and cost optimization challenges in logistics.


This article has been authored by Kulbhushan Arya, Regional Manager-South & Central India (Operations & Logistics), Grupo Bimbo.
Note: All views are personal and do not necessarily reflect those of Logistics Insider.

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