Transportation and logistics companies can’t avoid implementing new and innovative technology in their business. From various optimization tools to artificial intelligence-powered software, businesses can refine various processes and deliver better results.

Some reports state that innovative technology such as AI will be unavoidable in the future if you’re an AI company. At this point, AI tools for logistics are growing, and we’re gradually seeing more of them. 

This article will break down some of the most important implementations of the latest technology that will provide logistics teams with better coordination and results. Along with that, this article will also cover some of the key challenges that logistics companies face. 

Useful logistics tools

While there are numerous tools that you can find, both for individual drivers and for large enterprises, below is a list of logistics tools that have proven results in the past and are popular or experiencing a rise in popularity. 

Battery management software

Electronic cars and vehicles have been a significant breakthrough in making a more sustainable and eco-friendly world. Furthermore, this type of vehicle also has software that allows logistics companies to observe and track certain metrics. 

Monitoring the batteries of their vehicles is important for logistics companies as this gives them an insight into important aspects such as the State of Charge and State of Health of the battery. Temperature and used current can also be tracked and observed. 

Battery management software protects the battery from overcharging and over-discharge and notifies the right individuals in case of overheating. Overall, this software’s goal is to protect the battery and the vehicle and optimize its use. 

Advanced BMS solutions such as Elysia battery management software use machine learning and AI to predict battery’s performance and lifespan accurately. 

Furthermore, such solutions allow companies to add new vehicles to the network and scale without any setbacks. Battery management software helps your company become more sustainable and cut any unnecessary costs regarding energy consumption. 

Fleet management 

Tracking a couple of vehicles is a challenge, yet it’s incomparable when you have dozens or even hundreds of them. Manually tracking them won’t be effective, and it can even do more harm than good. 

With fleet tool management software, you can have all of your logistics processes centralized on a single app. In the context of vehicles, you’ll be able to track each vehicle, separate operations into areas, and understand the routes that drivers take. 

These tools can help you gather information on each driver or vehicle and help you understand whether there are better routes. A traditional GPS software that shows you a couple of shortest routes isn’t as helpful to a logistics company as there are many more problems that can come into play.

An advantage of fleet management software is that you can gather data over long periods of time, allowing you to optimize various business aspects with a professional data analyst. 

This software can also be integrated with warehouses, allowing you and your drivers to gain insight into the cargo that they’re going to transport. 

Communication software for drivers

Logistics companies must accept the latest trends in the communication landscape. Using phone calls or SMS to communicate with drivers or other team members can lead to miscommunication and even fines for the drivers. 

Instead, logistics teams need to switch to modern collaboration software that’s specialized for transportation companies. This not only makes coordination seamless but it allows you to integrate communication along with other interactive applications such as BMS and FMS.

Handheld devices are also banned in numerous states and countries across the world, so communicating with the driver via phone can lead to both fines and reputational blows to your company. 

Collaboration software is also extremely helpful with scaling and onboarding new members. This is true for both employees in the call center and new drivers. 

Challenges that logistics teams face

Logistics and transportation are interesting fields, as two companies that offer similar services can have vastly different problems. Factors such as route lengths, terrain, traffic, language barriers, and numerous others all impact how a business will operate. 

In the long run, these problems can become more or less significant depending on external factors. Regardless, the challenges I’m going to explain are common for many logistics companies. 

Transportation costs

One of the largest problems that logistics companies face is the high cost of various transportation expenses. Unless you have electric vehicles, you will spend a significant portion of your budget on fuel, which is obviously essential.

However, the challenge with fuel costs is that they’re subject to fluctuations due to market conditions, geopolitical events, and other factors. A war on the other side of the globe can significantly impact the fuel prices of your country. 

Furthermore, vehicles require maintenance and regular checkups. This is usually outsourced to a workshop that specializes in this. Checkups are costly, yet avoiding them or trying to save by using cheaper services of lower quality can do more harm than good. 

Lastly, transportation companies need to consider tolls and transportation tariffs as well as insurance for their vehicles and drivers. 

Besides the last type of expense, some of the logistics tools that have been previously mentioned can cut some of your costs. Fleet management software can help you optimize your routes and fuel consumption, leading to lowered operational expenses. 

As some FMS come with analytical tools that analyze the vehicle’s overall health, you can also need to worry about maintenance less. 

Inaccurate data

In various contexts, inaccurate data can be a major cause of problems for transportation companies. To start off, human errors in the context of tracking inventory, vehicles, and other situations where data entry is poorly executed. 

On the other hand, relying on external maps and logistics software that uses real-time data can be a cause of issues. Some services are more accurate than others, but finding software with the least amount of error is challenging. These inaccurate real-time applications can cause significant problems, such as making the route longer than needed, more fuel consumption, etc.

Large transportation companies need to incorporate different types of data from different sources and platforms. While BMS and FMS can significantly streamline your processes, an overwhelming amount of data can be problematic to store and analyze. Plus, data that’s stored is at risk of being stolen or deleted in the case of a cyber threat.

While AI-powered applications are bringing a lot of advantages for logistics companies, they also need accurate data to function. In a situation where such platforms use inaccurate or outdated data, it can cause problems in terms of inaccurate forecasts. 

Overall, a small error in one stage of the data analysis process can lead to larger problems down the line. 

Regulations

Transportation and logistics companies need to adhere to a lot more regulations and laws than various other industries. The reason behind this is obviously the nature of this industry, as transports need to be safe and legal.

These companies must keep track of a complex web of local, national, and international regulations, which can vary widely and change frequently. So, don’t be surprised if you even need to hire services from a lawyer or similar expert. 

While various tracking and management tools bring incredible advantages to your operations, they can also be a source of problems. If you’re gathering data on your transports and using it for your company’s internal needs, you will have to adhere to data regulations as well as other industry-related ones.

Data regulations depend on the region you’re operating in, and you will have to pay additional attention to how you’re company is going to store, process, and gather data. 

Sustainability 

Environmental impact is an important aspect of the motor industry. In a world that’s becoming increasingly more eco-friendly, it’s important to ensure that your company is satisfying these metrics as well.

However, if you’ve been a veteran in the industry, transferring from one type of fuel to another or purchasing new vehicles can pose significant costs. On top of this, companies that aren’t eco-friendly must pay additional costs and taxes.

Latest technology can skyrocket coordination efforts in logistics

Like in any other field, there isn’t a single piece of technology that can turn poor service into a great one. But, there are numerous solutions that can significantly improve various aspects of your logistics company.

If you’ve been struggling with route optimization, then there’s a tool for that. On the other hand, your electronic vehicles might have struggled with battery problems, and there’s also a solution that can significantly improve their runtime. 

Start by analyzing your business and it’s points and then decide for the software that can you can apply to solve that problem. 

Veljko Petrovic is a student of information technology who paired his passion for technology with his writing skills. He enjoys researching topics such as robotics and programming and cultivates his knowledge in philosophy, classical literature, and fitness. Veljko’s favorite writers are Borislav Pekić, Miloš Crnjanski, and Ernest Hemingway. Writer Veljko