Technology

Digitization and Automation in Logistics Industry

Flexibility, reaction speed, and cost efficiency are increasingly important in logistics. Due to increased process costs, a shortage of skilled workers, and disruptions in international freight traffic, logisticians are more confronted with high-cost pressure.

The scope of services and the number of shipments are constantly increasing, while at the same time, the margins in the logistics industry are deteriorating. This fuels the trend towards further digitization to streamline processes and thus remain competitive.

The logistics industry can achieve the digitization and automation of business processes with five essential measures.

High document volumes in the logistics industry

Since almost all processes involve the handling of documents, enterprise content management or document management systems play a crucial role in digitization. Each transport of goods is associated with many records – whether digital or in paper form.

This includes forwarding/transport, customs, warehouse documents, records for the customer order, container slips, track-and-trace information, and much more. A transport triggers numerous processes with documents – even if the operations are digitized.

More often, records must be r made available on platforms – for example, delivery receipts and invoices, etc.

Large logistics companies transport several thousand shipments daily and process large documents daily and monthly. Automated and intelligent digitization of records and the corresponding initiation and processing of subsequent processes can make work much more accessible and, at the same time, significantly reduce administrative process costs per shipment.

In logistics, in particular, we currently see the greatest need for intelligent process automation when processing documents.

The needs of the market are very different. Medium-sized and large logistics companies usually already have an ECM/DMS solution. Topics such as collaboration with business partners and digital signature solutions are currently ‘burning’ for them.

Additional process improvements can be achieved in this segment primarily through AI-supported, intelligent capturing in document processing since many companies are now using outdated solutions. Small to medium-sized companies, on the other hand, are usually still at the very beginning. The following five measures support digitization.

ECM or DMS solutions create the basis

For companies that have yet to use an ECM or DMS solution, a system optimized for the logistics industry creates the basis for logically summarizing shipment-related receipts, documents, information, and processes.

It also supports their secure and legally compliant storage in the form of digital files in a central digital archive. In addition to predefined internal structures and classifications, the digital files have descriptive properties as data fields.

Compliance with data protection and specific storage guidelines is regulated by granting access authorizations. A digital shipment or forwarding file contains, among other things, defined structures for shipment documents, customs documents, warehouse documents, and many other documents such as customer orders, container slips, or track & trace information.

Even for companies that have already taken this step, there are starting points for taking digitization to the next level.

AI-based scanning and capturing for automation

The convenient ability to automatically and quickly capture, classify, and index paper-based documents with an intelligent document data recognition module is a core competency of an effective DMS solution.

However, many logisticians need to be using updated solutions. With the help of AI and machine learning technologies, advanced solutions can automatically integrate scanned documents into DMS shipment files after the capturing process.

The workflow system triggers automated processes depending on the document type and attributes.

In this way, entire batches of documents can be processed automatically in one operation and with an integrated learning mode based on AI technologies. This eases the workload for scarce human resources.

The essential features of such scanning and capturing solutions include processing several thousand documents per day and automated document recognition with an intelligent learning mode.

In addition, standardized document profiles such as delivery notes, PODs, CMR bills of lading, AWBs, warehouse receipts, invoices, and container slips were created. Last, the transfer of documents from e-mail inboxes or file storage.

Digital process management for the logistics industry

Many DMS solutions offer a workflow engine to reduce time-consuming manual processes. This is an integrated process manager, with the help of which operational processes based on electronic documents are defined and partially automated.

In this way, all document processes can be mapped. The standardization and automation of routine processes lead to more accessible work, transparency, and acceleration in the process chain. For the logistics industry, the following procedures should be integrated into the solution:

  • Automated processing of shipment documents such as POD and bills of lading etc.
  • Processes for deviation management in the case of container differences or damage
  • Invoice verification processes (P2P) for general and shipment costs, such as third-party driver costs with validation for the order and the option to add other functions.

Transparency in the logistics chain through process integration

Collaboration is high on the to-do list of many logisticians. Forwarders want to implement comprehensive processes for business partners or customers with a suitable solution and thus integrate their customers and partners into the strategies.

On the other hand, customers and partners today naturally expect to be informed in real time about the shipment, whereabouts, or arrival of goods. Logisticians, therefore, need solutions that enable customers and business partners to gain insight and access to shipment and delivery information.

Automation of sending such information can be easily tracked from the DMS. The DMS ensures that a document is recorded in all systems when it is created (e.g. when the goods are delivered) and that the corresponding follow-up processes occur automatically.

With the information about the delivery of the shipment, the customer receives a link to the necessary information, can view the receipt, and transfer it to his ERP system. In addition, the automatic sending of an invoice can also be triggered.

Digital solutions simplify signature processes.

With the integration of digital signature solutions such as AdobeSign, the automation of the signature processes with internal and external contracting parties becomes possible, even in the international business environment.

The DMS transfers documents directly to the signature solution via suitable interfaces (WebAPI) for digital signatures. The results of the individual signature processes are saved on the signed copies and stored again in the DMS.

In this way, who digitally signs which documents, and when are they directly traceable? This simplifies the processes and ensures transparency and security. In transport logistics, in particular, proofs of origin are often required.

Both documents and process steps can be authorized with digital signatures. The digital signature is used to record the identity of natural persons associated with the respective processing activity and save it to preserve evidence, for example, in the event of damage.

The logistics industry uses digitization to optimize processes.

Efficient processes are a supreme discipline in the logistics industry. In many places, industry-specific software solutions support optimization tasks in ​​route planning, fleet management, and shipment tracking. Due to growing costs and competitive pressure, logisticians use digitization to make processes more cost-effective and efficient.

Further digitization also enables the integration and partially automated control of subsequent processes. This affects in-house processes in administration and accounting and the integration of customers and partner companies. Since almost all processes involve handling documents,

“The companies are looking for a container” that collects all their document structures, regardless of whether they are forwarding files, customs clearance files, or vehicle fleet files.

Upstream, the topic of intelligent or AI-based processing of the receipts plays an important role – from scanning the receipts to reading the information and assigning and initiating follow-up processes, such as processes for damage, invoice verification, container management, etc.

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