Logistics Document Management: Automation for Better Transportation (2024)

Many logistics companies struggle to stay on top of mountains of paperwork, toil with slow outdated software, and stumble through complicated workflows. When supply chains span international borders, these problems are only intensified.

Logistics relies on paper to keep precise records and track stored and shipped goods. Minute details need continuous updating to preserve accuracy and to prevent mistakes, which can be extremely costly. Logistics document management software can help you avoid paper’s potentially pricey pitfalls.

What is Logistics Document Management?

Logistics document management software enables transportation and logistics companies to manage documents within the supply chains they serve. All relevant information is readily available in one central digital system, eliminating the risk of missing or bad quality data due to lost or damaged paper documents. The logistics industry may still be highly dependent on paper documents, but companies that make the shift to digital will be the ones that remain relevant in the 21st century.

International transport comes with its own set of challenges and constraints, such as severe weather conditions, traffic congestion, and damaged cargo. To prevent further complications, logistics companies must ensure all documents contain the correct information when shipping across borders. Pre- and post-transport management can help, but humans can make minor mistakes or misread, say, a 5 for a 6, which could derail an entire shipment and cause major delays and added costs.

Types of Logistics Documents

Documents are at the heart of all logistics processes. Invoices, bills of lading, shipping slips, customs documents, and packing lists are just a few of the (typically) paper documents that are passed through many hands from supplier to receiver to end customer. Some documents get converted from paper to electronic format; however, they are the minority and include correspondences and statements.

Logistics documents contain very important information and can be difficult to process, slowing down the movement of goods and severely impacting your supply chain.

Paper is Unreliable in Logistics

Logistics is a paper-intensive industry. There’s a paper trail for every single process, including managing and tracking inventory in warehouses, shipping goods from overseas, or moving from distribution centers to stores. While this means everything is trackable, lost or damaged documents can cause serious difficulties. No matter the movement, there are sometimes hundreds of documents confirming a single activity. Papers that contain even the smallest of errors can be extremely difficult or impossible to track, resulting in delayed or cancelled shipments.

Pressure to Deliver on Time

In the transportation and logistics industry, there is immense pressure to ship and deliver goods on time. There are constant threats and new competitors from emerging markets that could derail entire operations. Shifting toll and tariff costs and fluctuating fuel prices are sources of major concern and need to be checked at all times. Even the slightest change could lead to major budgetary issues.

Companies that want to succeed in this industry need to have the most cost-effective, efficient, and flexible processes in place, and their decision-makers need access to information in real time.

Warehouse Upkeep and Maintenance

There is immense pressure on warehouses to keep their stocks stable, organized, and easy to access in a well-maintained distribution or fulfillment center. If a warehouse isn’t storing enough of a particular product to satisfy increased demand for that product, the result will likely be unhappy customers and the potential loss of future business.

These struggles affect the logistics sector and can disrupt supply chains. These issues can be alleviated or even avoided in the future by the elimination of paper documents, as well as easier and faster access to document data.

Logistics Document Management: Automation for Better Transportation (1)

Coronavirus and the Future of Logistics

The unexpected and unpredictable COVID-19 pandemic has turned some stable supply chains on their heads. Factory shutdowns and border closures have created a major rift in global supply chains. These unforeseeable circ*mstances have forced major logistics and shipping companies to reevaluate or streamline their processes to increase efficiencies. Solutions have included shortening the supply chain to mitigate risk and the elimination of paper documents to speed up shipping operations.

Automated Logistics Document Management

Without having to search for one particular document in a sea of paper, you reduce errors, gain faster access to business-critical information, and establish operational efficiency that improves global operations.

Work in the Cloud as You Ship Across Oceans

Moving to an automated, cloud-based solution means your shipping documents are available at the click of a button, and your employees can cross-check information in seconds to ensure the accurate shipment and receipt of goods. There is no time-zone delay or language barrier, and information remains secure and accessible to the people who need to work with it.

This type of solution exists today and can bring your company the following benefits:

  • Convenience
  • Reliability
  • Cost Reduction
  • Scalability and resilience

Automated Document Data Capture

Software that extracts important data from documents can be integrated within a logistics document management system. There are many types of logistics documents, as well as fields common only to your industry. Accurately capturing, archiving, and searching for data in these documents, such as shipping point, loading group and delivery type, is vital to avoid inefficiencies.

An important factor to consider when your logistics company is looking for a data extraction solution is the software’s ability to integrate with your existing systems. Extracted data is useless if it’s inaccessible to other programs in your IT infrastructure. Best-in-class systems offer robust APIs and can be integrated into any logistics electronic system for filing purposes.

Major Shipping Company Switched to Automation

Rossum’s own customer, Cosco Shipping Lines, one of the world’s largest shipping and logistics companies, switched to an automated data capture process to eliminate paper documents. According to Michal Cipa, IT Manager at Cosco Shipping lines:

“We have been forced to stop paper transactions; we even had to skip the testing phase for some of our new accounting databases and went straight to production. All our invoices are already going through Rossum; I can’t image our AP process functioning without it.”

Whatever your document needs are, Rossum is able to help. We have already been working with major shipping and logistics companies to automate their shipping document data extraction. If you plan on transitioning from paper to digital, you can set up a Rossum trial account in minutes. Process up to 300 documents per month, with no commitment, and start your automation journey.

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Logistics Document Management: Automation for Better Transportation (2024)

FAQs

How can automation help in logistics? ›

The benefits of logistics automation are countless – saving on labor, inventory, energy and more. In addition, the logistics process is carried out faster, more precisely and qualitatively, more economically and more efficiently. It significantly reduces errors and improves customer service.

What is automation system in logistics management? ›

Automation or automatic control in logistics refers to the use of control systems, machinery or software to improve the efficiency of operations. It usually applies to processes that must be performed in a warehouse or distribution center and which result in minimal human intervention.

Why logistic management needs a proper documentation system? ›

Document management software helps logistics companies avoid the bottlenecks that cause delays in deliveries and shipments. It provides a centralized system for managing freight bills, bills of lading, proof of concept, and other essential documents.

How can we improve transportation efficiency? ›

More Efficient Routes, More Efficient Drivers

Full trucks, less-than-load carriers, and last-mile drivers must work together to increase transportation efficiency and reduce logistics costs. By perfecting driver routes within these networks, a company can reduce redundancy and wasted time.

How can we increase the efficiency of transportation? ›

Transport efficiency means using the best vehicle for the job in hand and taking the fastest routes available. Make sure your plans consider vehicle size and capacity to optimise trailers for each job and ensure drivers are equipped with traffic and route data that allows for the most efficient route to be taken.

What are the 4 types of automation? ›

There are four types of automation systems: fixed automation, programmable automation, flexible automation and integrated automation. Let's take a look at each type and their differences and advantages. Then you can try to determine which type of automation system is best for you.

What are the 10 strategies for automation? ›

  • 10 Strategies for Automation and Production Systems.
  • Specialization of operations. ...
  • Combined operations.
  • Simultaneous operations. ...
  • Integration of operations. ...
  • Increased flexibility. ...
  • Improved material handling and storage. ...
  • On-line inspection.
5 Jul 2014

What are the three types of automation? ›

Three types of automation in production can be distinguished: (1) fixed automation, (2) programmable automation, and (3) flexible automation.

What are the 3 basic elements of an automated system? ›

The main subsystems and components of a machine automation system are: power distribution. motor control and drives. safety system.

Why documentation is important in transportation? ›

Documents in global transportation are essential because it is the legitimate proof that an item has been delivered. When a customer requests a proof, this is the document the seller produces to establish that the delivery was made.

What is the most important transportation document? ›

The bill of lading is the most important document that is used in transporting goods. The legal definition of a bill of lading is a contract for the carriage of goods and a document of title to them. It provides any and all information that the carrier will need to transport the items.

What is the most efficient way of transportation? ›

A standard lightweight, moderate-speed bicycle is one of the most energy-efficient forms of transport.

What are the 4 benefits of transportation management? ›

Benefits of a Transportation Management System (TMS)
  • 1) Reduce freight expenses. One of the greatest benefits that a TMS provides is reducing freight spend. ...
  • 2) Track deliveries in real time. ...
  • 3) Increase customer service. ...
  • 4) Improve warehouse efficiency and productivity. ...
  • 5) Increase supply chain efficiency.
11 Mar 2016

What are transportation strategies? ›

Transportation strategies means transportation demand management plans, schemes, techniques, programs, and methodologies for minimizing transportation facility demand, including without limitation improved transit service, off-peak travel, and ride-sharing programs.

What is the best example of automation? ›

Examples of automation include

Cars which use technology, cameras and artificial intelligence to drive. Though self-driving cars are not without risk of crashing, they can be set up with a higher standard of safety than your average human driver, who will get tired and make mistakes.

What are automation methods? ›

Today, there are essentially 4 distinct and separate approaches to automating business processes & tasks: Upgrade your core business management system – ie ERP. Implement a Business Process Management (BPM) Solution. Implement Robotic Process Automation (RPA) Bespoke Scripting and Application Development.

What are the latest automation technologies? ›

Robotic process automation (RPA) platforms are projected to be the centralized technology from which others will expand on in 2022, beating out similar automation technology options such as business process automation (BPA), integration platforms as a service (iPaaS), low-code application platforms (LCAPs), and ...

What are the benefits of automation? ›

Benefits of Automation
  • Lower operating costs. ...
  • Improved worker safety. ...
  • Reduced factory lead times. ...
  • Faster ROI. ...
  • Ability to be more competitive. ...
  • Increased production output. ...
  • Consistent and improved part production and quality. ...
  • Smaller environmental footprint.

What is the purpose of automation? ›

Automation reduces time, effort and cost, whilst reducing manual errors, giving your business more time to focus on your primary objectives. Repetitive tasks can be completed faster. Automating processes ensures high quality results as each task is performed identically, without human error.

How do you build a successful automation strategy? ›

8 steps for implementing a successful process automation strategy
  1. Show value of automation to leadership. ...
  2. See the big picture. ...
  3. Create a culture of automation. ...
  4. Reimagine workflows before automating. ...
  5. Establish a supporting IT infrastructure. ...
  6. Create a robust change management strategy.
25 Jul 2022

What are 2 features of automation? ›

5 key automation features that ensure successful process management
  • Process mapping. Creating process maps is the first step to large-scale process optimization. ...
  • Automated workflows. Workflows are a set structure of business tasks. ...
  • Robot process automation (RPA) ...
  • Document generation. ...
  • Process intelligence.
29 Apr 2019

What are principles of automation? ›

To satisfy demands from their user community, even fully automated shops make changes to their automation software, often daily. They are constantly creating automation rules to keep up with their business. You can modify your rules interactively, without worrying about whether each shift has seen your latest changes.

What are the 8 products of automation system? ›

Integrated Automation
  • Computer-aided process planning.
  • Computer-supported design and manufacturing.
  • Flexible machine systems.
  • Computer numerical control machine tools.
  • Automated material handling systems, like robots.
  • Automatic storage and retrieval systems.
  • Computerized production and scheduling control.

Which is an example of an automation tool? ›

Selenium. Selenium is a very well-known tool when it comes to testing automation. It allows its users to write scripts in a lot of different languages, including Java, C#, Python, Perl, and Ruby. This tool also runs in several operating systems and browsers.

What are some examples of automated systems? ›

Automated systems are solutions implemented by many businesses looking to boost efficiency in their operations. Examples such as stacker cranes, conveyors, and the Pallet Shuttle can be incorporated in any logistics facility to optimize movements of goods.

What is an automated checklist? ›

Definition(s): A checklist that is used through one or more tools that automatically alter or verify settings based on the contents of the checklist. Automated checklists document their security settings in a machine-readable format, either standard or proprietary.

What are the major components of automation? ›

Each of these subsystems consists of only five basic components: (1) action element, (2) sensing mechanism, (3) control element, (4) decision element, and (5) program. Action elements are those parts of an automated system that provide energy to achieve the desired task or goal.

What are the automation 360 components? ›

Automation 360 is a single, integrated platform that transcends technology siloes to automate business processes across all systems and applications, including SaaS and legacy apps.
  • AARI.
  • Automation Solutions.
  • Intelligent Automation Apps. Discover. Process Discovery. Digitize. ...
  • Trusted Cloud. Data. AI. Micro-Services.

What is the rule of 5 for automation? ›

No more than five decisions.

He defined simple to mean less than five decisions. “When you get to more than five, you're going to need a rules engine, BPM, machine learning to help with rules,” he said. “Because those decision have to be coded explicitly in a bot — in a script.”

What are the two types of process automation? ›

There are two main types of automation available in Power Automate: API-based digital process automation: cloud flows. UI-based robotic process automation (RPA): desktop flows.

Which is the first strategy in automation process? ›

One of the first steps in establishing an automation strategy is identifying which processes and areas of your business would benefit most from automation. This may include tasks that are repetitive or manual, require significant manpower or resources to complete, or are critical to the success of your business.

What are the documents required for transportation? ›

for transportation of goods by road - https://omlogistics.co.in/
  • Invoice for the goods (this usually contains details like description of the goods, their value, the quantity, etc.)
  • Bill of supply (if you are transporting goods that are exempted from GST)
  • Delivery challan.
  • E-way bill or a copy of the E-way bill.

What are the common documents involved in transportation? ›

Transport documents
  • Bill of Lading. The Bill of Lading (B/L) is a contract for maritime carriage that specifies the taking of responsibility, or the loading, of goods by the carrier. ...
  • Sea Waybill. ...
  • Consignment Note (CMR) ...
  • Air Waybill (AWB) ...
  • Rail Consignment Note (CIM)
1 Mar 2018

What are the key feature of an effective document management systems? ›

Providing quick and efficient updates at any time. Giving instant access to the right information, from any location. Providing multimedia content access in a range of formats. The ability for customisation such as personal annotations to be done easily, without fear of deletion through frequent manual updates.

What is the goal of document management? ›

Objectives of Document Management:

Reduce lost and misfiled documents. Provide faster search and retrieval of documents. Reduce the amount of physical space used to store documents, such as file cabinets, boxes and shelving. Better organize existing documents.

Which are three functions of a document management system? ›

Business.com claims that there are three main functions of a document management system — to capture, store and distribute documents. Again, in its most basic definition, a document management system should at least do those three things well.

What are the four 4 most common freight documents? ›

The five most common documents for international shipping you should be aware of are bill of lading, purchase order, air waybill, and export packaging list.

What are the 4 important means of transportation? ›

Four major means of transport are:
  • Roadways.
  • Railways.
  • Waterways.
  • Airways.

Who needs to prepare the transportation documents? ›

Who is responsible for preparing the shipping document? The consignor or importer is responsible for the preparation of a TDG shipping document. Consignors or importers also have responsibilities including to: make sure the TDG shipping document contain all the required information in Part 3 of the TDG Regulations.

How can automation help supply chain? ›

The Benefits of Automating Supply Chain Data Capture
  1. Streamline the data capture process. Automation makes supply chain processes smoother while increasing data accuracy, thus preventing cases of invoicing backlogs and order errors. ...
  2. Save money. ...
  3. Reduce human error. ...
  4. Get easier access to data.

How automation helps in supply chain management? ›

By incorporating automation technology such as machine learning, artificial intelligence, and digital process automation into the supply chain, a business reduces the manual work required to perform certain business functions. This in turn speeds up workflows and makes your supply chain more efficient.

How automation benefits the logistics sector through efficiencies and synergies? ›

It helps fast track order booking and package handling in warehouses. There are automated modes that enable transit and shipment, tracking materials as they move through the supply chain to deliver them on time. Operations are getting more efficient with this technology helping out.

How is AI used in the field of transport and logistics? ›

Using AI-driven data analytics, organisations can account for variables such as fleet maintenance schedules, vehicle sensors, adverse weather, and fuel costs. It gives drivers critical data pointers and assists them in travelling more efficiently, and enables businesses to decrease their logistical expenses.

How automation is transforming supply chain? ›

The benefits of automation, both in and out of the warehouse include increased efficiency - manifested by increased fill rates and decreased cycle times, as well as increased warehouse throughput time, reduced labor and operational costs, elimination of human error, and improved inventory management.

What is one thing you will automate in the supply chain management? ›

Nearly every aspect of your supply chain can be automated, but there are three overarching types of automation that will be most beneficial to you; back-office, transportation, and warehouse.

Why automation strategy is important? ›

Automation strategies allow businesses to streamline their processes, reduce costs and increase efficiency across all departments. Too often, businesses assume that automation is a “set it and forget it” proposition. They choose a few tasks to automate, set up the process, and then move on to other priorities.

How does automation improve efficiency? ›

In an automated environment, employees have the time, resources, and freedom to focus less on manual tasks and more on strategy, innovation, and tech. This equates to a much higher employee productivity rate.

How your company can use automation today to improve supply chain management efficiency? ›

Fulfillment and shipping automation

Convert purchase orders to sales orders. Track and fulfill engineering change orders. Track each product's QA status. Automatically send shipment notifications to their customers.

What are the 3 benefits of automation? ›

The benefits of automation include improved accuracy, reliability, productivity as well as improved employee morale.

What are 3 advantages of automation? ›

Advantages commonly attributed to automation include higher production rates and increased productivity, more efficient use of materials, better product quality, improved safety, shorter workweeks for labour, and reduced factory lead times.

What are five advantages of automation? ›

Benefits of Automation
  • Lower operating costs. ...
  • Improved worker safety. ...
  • Reduced factory lead times. ...
  • Faster ROI. ...
  • Ability to be more competitive. ...
  • Increased production output. ...
  • Consistent and improved part production and quality. ...
  • Smaller environmental footprint.

What is an example of how AI is changing transportation? ›

AI Traffic Management

We've all been there, sitting in a traffic jam that seems to go on for miles, wondering if the lights are ever going to change to green! Well, machine learning is now being used to prevent traffic jams, systems can now process complex data and recommend the best route for travelers.

What are examples of intelligent transportation systems? ›

Examples include fleet management, intelligent traffic management, V2X communication, electric vehicle charging, electronic toll collection, and a wide range of other mobility solutions. Today, many transportation providers rely on disaggregated data platforms and independent point solutions.

How AI is changing the logistics industry? ›

AI leads to the launch of self-driving vehicles that will help meet the supply chain's demands. Furthermore, it will also help to lower transportation costs. AI will automate vehicles into making them driverless. Well, different companies have also started to implement this practice.

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