The Digitization in Logistics
The development and growth of transportation is intrinsically related to rapid economic growth. To keep a competitive edge in the market, logistics businesses must digitize right now. Industry standards are always changing due to advanced technology, thus businesses must adapt. Processes that have been digitalized are more accurate, more productive, cost-effective, and profitable.
Yet, the transportation industry also has a significant amount of potential to reduce pollution, which is why sustainable transportation is a top priority in Europe and throughout the world by assisting in the development of digitalization-related solutions. Innovative digitalization techniques in transportation are also contributing to a decrease in pollution, in addition to the usage of energy in the road transport sector.
In 2020, a law governing electronic freight information was adopted by the European Parliament. The European Electronic Freight Information Regulation aims to provide a framework and standards for the electronic exchange of freight information across the EU (eFTI). The implementation of the Regulation requires the development of technological solutions for the electronic exchange of documents between the public and private sectors. In accordance with the eFTI Regulation, public entities within the EU will be required to accept electronic freight documents from market participants by 2025.
With this, we hope to address a number of problems, such as reducing delivery times, doing away with paper documents, and reducing the impact of climate change. But for several years running, a lot of logistics and transportation firms have been implementing fresh approaches to a digital documentation system. Adoption of this Regulation is predicted to reduce administrative costs for operators by up to €27 billion. Additionally, it could increase lorry productivity by up to 20%, reducing demand and related costs.
Applying digitization
We believe that the future of any business involves solutions based on digitization and artificial intelligence. The solutions we’ve put in place streamline our workers’ work and reduce their workload. Tablets for drivers are one of the key digitizing options. All Tomegris drivers currently have tablets that let them view their routes, scan paperwork as they unload trucks, log lorry faults, and communicate with management. Dispatchers and customers both profit from document scanning. There is less paper waste and both parties now reply more quickly. Another significant digitalization option is the IT systems deployed in the management department.
These systems provide real-time tracking of vehicle movement, communication with the driver, responses to inquiries, suggestions for other routes, or modifications to existing routes to include new stops such as refueling. The system is used by managers to quickly plan the route so that both the stop point, and the subsequent journey are hassle-free and in the direction of the tractor’s motion. If the initial rest area is taken, a backup location is always provided nearby. Finally, thanks to the development of remote tachograph scanning, drivers are no longer required to visit the office once a month to have their driver card or tachograph scanned.
These digitization solutions are living up to expectations. An optimized logistics chain, with careful route planning, allows a company to avoid empty kilometers of unladen truck journeys.
Even bigger plans are in place for 2023. 90% of invoices are expected to be processed electronically by 2024. The individual account templates of new customers or suppliers, which are not yet recognized by the system and thus still require human intervention, prevent the full scanning of accounts from being completed. Each new individual template must be manually created for these accounts before the system can read the data and display it in the Accounting Unit’s software. This process takes time. Last but not least, the objective is to develop a program that will automatically fill out the drivers’ trip logs.
All digitization decisions at UAB Tomegris are made to lighten the workload, avoid additional costs and be as environmentally friendly as possible. We hope that the objective of the Electronic Cargo Information Regulation will be realized, and that digitization will become an integral part of every business.
