For a logistics company, it's very important to manage its assets effectively! They move their assets regularly from the warehouse or facility to somewhere else and when assets are moved chances of asset loss & theft increases this is why asset tracking is very important for them.
But the question is how! With logistics asset management and asset tracking technologies such as barcode, QR Code (Quick response Tag), RFID (Radio-frequency identification), etc. An improper way of logistics management can affect your organization badly financially.
What Is Logistics Management, Anyway?
Some people refer to it as logistics only! Supply chain management and logistics management, both are interconnected. Logistics involves the process of collecting material, production, packing, transporting from manufacturing to sending to malls and shops.
According to Wikipedia,
“Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations.”
What Is Asset Management?
Asset management is the process of managing and monitoring assets with a systematic approach. Moreover, it also includes operating upgrading and disposing of assets. Overall, it manages the whole asset life cycle cost-effectively.
How Logistics Organizations Can Track and Manage Assets Effectively?
Logistics organizations can keep track and manage assets effectively with logistics asset management and asset tags. Organizations use tags for organized asset management. Tags are labeled on an asset; these tags usually have unique id through which asset being tracked.
With asset management software and a handheld scanner, supervisors can retrieve information about assets. They are also helpful in organizing, maintaining, and manage assets such as asset acquiring and disposing of assets as well.
These tags are also helpful in reducing errors by eliminating manual tracking of assets. Most importantly they play a critical role in providing crucial information such as asset movement, asset maintenance expenses, and so on.
The logistics industry is a very complex industry in which real-time information is very significant. As we have mentioned above different technologies for asset tags such as Barcode, RFID are available. However, the best technology for the logistics industry is GPS, IoT as they provide real-time information.
When you know the real-time information about the product then you can tell your client or partner exactly how much time the product will be delivered. So that they can also plan accordingly.
Technologies for Better Logistics Management
Lots of activities are done simultaneously in logistics and one small mistake can lead to a delayed operation. To streamline operations and to increase client satisfaction, managers can use IoT (Internet of Things) for effective logistic asset management. With IoT, organizations can keep track of tools in real-time, eliminating delays in finding tool.
IoT allows you to manage inventory smartly as it can provide exact inventory numbers and estimated time when inventory will be finished. Moreover, IoT technology creates a connected system environment that assists in improving warehouse asset management.
According to Markets and Markets,
“The connected logistics market is estimated to grow from USD 10.04 billion in 2016 to USD 41.30 million by 2021, at a Compound Annual Growth Rate (CAGR) of 32.7% during 2016-2021.”
GPS (Global Position System) is used in transports, which is why it is important for logistics organizations too. It is not just a helping tool in navigating destination, it can help in several other ways too.
For example, a manager can inform clients that in how much time assignment will be reaching its destination. With GPS technology one can know vehicle speed, route, vehicle stopped or running.
GPS provides real-time updates; the driver can check if traffic jam happens and the decision can be taken accordingly to avoid it. Managers can also track cost analysis, if a driver has taken the most cost-effective route or if a driver is using a vehicle for personal use etc. Real-time tracking minimizes the possibility of theft as well.
Logistic organization daily operations are complex, so to increase operational efficiency, inventory plays a significant role in daily operation. Asset tracking management software makes simplifies workflow and allows you to handle inventory efficiently!
What Are the Benefits of Using Logistics Asset Management for Organizations?
Benefits of using logistics asset management for organizations are given below:
1. Better Inventory Control
Effective asset management can analyze product requirements to avoid a shortage of inventory. Effective inventory management is crucial in producing products and if it's not managed properly, it can result in delayed productions, a decrease in productivity and the customer will be disappointed as well.
2. Real-Time Tracking
Logistics asset management gives you a complete view of assets. It enables your organization to know the accurate location of the asset in different locations. How they are being used, what is the current condition of each asset!
You can also view the asset movement history of each asset. With real-time feature comes accuracy in terms of keeping perfect and accurate records. Moreover, with this feature, no data duplicity occurs.
3. Better Customer Service
When a contract is signed between a logistics company and the client, the client expects a better return on investment. The client also expects from the company that they will provide all shipping information for example, when the shipment will be delivered and location in real-time. With logistics asset management & tracking technology, you can keep your customer informed about the shipment.
4. Maintained Assets
If asset performance is great then you can notice an improved return on investment. The reason being your maintenance expenses are minimized and asset or equipment failure chances are decreased. Furthermore, work is delivered on time. Asset management lets you know in advance when your assets need maintenance.
It can keep your assets optimized and organized. Not just that it keeps all the crucial information about each asset as well such as asset acquisition date, model number, warranty expiration date, maintenance repair history, life expectancy, etc.
Logistics organizations have lots of heavy equipment, keeping them maintained is necessary otherwise the disastrous problem can arise, and most importantly your business will suffer.
5. Data Analytics
Analytics assists in identifying issues and proven valuable to logistics managers. Through data, managers can make a better and informed decision. It allows the organization to find a potential problem and solve it so that productivity can be increased.
Logistics organizations can streamline their activities including arranging, resourcing, and execution with asset management software. It increases the transparency in supply chain procedure. With this software and tracking technologies, automatic data entries are done and eliminating human mistakes resulting in increased productivity of the employee.
In the logistics sector, one small error can lead to a delay in production. Therefore, logistic asset management software is a really helpful tool that can improve an organization's daily operation and provide better control over your assets and inventories.
Frequently Asked Questions (FAQs)
1. What are some of the components of logistics?
Fleet management, warehouse asset management, inventory management, material handling, Inbound and outbound transportation are some components of logistics.
2. What are the different types of logistics management?
There are four types of logistics management such as:
Supply - Sending products and material at the prime location at a particular time. It requires planning, coordinating, and procuring material.
Distribution - Sending the material and product from the central place to other required locations. It includes loading and unloading material.
Production - Material required at a specific location to create a product.
Reverse - Reutilization of products and material left from production.