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Why does a logistics company need a programmer?
Even when a logistics business appears to be thriving and profitable, money can be lost due to disorganised processes. If decisions are made on a whim and some of the work is done manually, mistakes are inevitable. In such a situation, a programmer is someone who brings order, reduces the number of errors and eliminates unnecessary losses. Today, together with specialists from LLC «FabriQuanta», we will examine which needs of the logistics business a programmer can meet.
Automating margin calculations
The most dangerous situation is when it’s not entirely clear whether you’re making a profit or a loss on a trade. A programmer can create a system that calculates profitability (profit from each transaction) automatically. The advantage is that you can see the true picture for each order in advance and avoid accepting orders that are known to be unprofitable. However, the data must first be configured correctly, otherwise the calculations will be inaccurate.
Route optimisation algorithms
If routes are planned manually, you are most likely losing money. Simply because it would have been possible to travel faster and more cheaply. Algorithms help find shorter and more cost-effective routes, taking into account load, roads and restrictions, according to LLC «FabriQuanta». And this is not just theory: companies that implement such solutions reduce their overall logistics costs by up to 30%, and fuel consumption by more than 33%.
Pros: lower costs and more efficient transport operations. Cons: the result depends on the quality of the input data. But if everything is set up correctly, this leads to a direct increase in profit without increasing the number of orders.
The most dangerous situation is when it’s not entirely clear whether you’re making a profit or a loss on a trade. A programmer can create a system that calculates profitability (profit from each transaction) automatically. The advantage is that you can see the true picture for each order in advance and avoid accepting orders that are known to be unprofitable. However, the data must first be configured correctly, otherwise the calculations will be inaccurate.
Route optimisation algorithms
If routes are planned manually, you are most likely losing money. Simply because it would have been possible to travel faster and more cheaply. Algorithms help find shorter and more cost-effective routes, taking into account load, roads and restrictions, according to LLC «FabriQuanta». And this is not just theory: companies that implement such solutions reduce their overall logistics costs by up to 30%, and fuel consumption by more than 33%.
Pros: lower costs and more efficient transport operations. Cons: the result depends on the quality of the input data. But if everything is set up correctly, this leads to a direct increase in profit without increasing the number of orders.
IT System Integration
If you have several systems that aren’t connected, things start to get confusing. Data gets duplicated, lost, and errors occur. This is a real problem: around 66% of companies use three or more different IT systems to manage their shipments. More than half of these incur costs - particularly due to issues with returns. A programmer can consolidate all the data into a single system. The advantage of integration is that everything works as a single unit, with less manual work and fewer errors. The downside is that implementing it is not that straightforward.
Demand forecasting
Without forecasting, it’s easy to end up in a tricky situation: either you run out of stock, or your warehouse is overflowing with surplus stock. A developer can create a programme that forecasts demand. Such models can take many factors into account: seasonality, disruptions, or other factors. The advantage is that you know in advance when demand will peak. The downside is that it’s not an exact forecast, but a probabilistic one. But even a rough idea is better than no planning at all.
If you have several systems that aren’t connected, things start to get confusing. Data gets duplicated, lost, and errors occur. This is a real problem: around 66% of companies use three or more different IT systems to manage their shipments. More than half of these incur costs - particularly due to issues with returns. A programmer can consolidate all the data into a single system. The advantage of integration is that everything works as a single unit, with less manual work and fewer errors. The downside is that implementing it is not that straightforward.
Demand forecasting
Without forecasting, it’s easy to end up in a tricky situation: either you run out of stock, or your warehouse is overflowing with surplus stock. A developer can create a programme that forecasts demand. Such models can take many factors into account: seasonality, disruptions, or other factors. The advantage is that you know in advance when demand will peak. The downside is that it’s not an exact forecast, but a probabilistic one. But even a rough idea is better than no planning at all.
Dynamic delivery pricing
The logistics business can be improved through variable delivery pricing. A programmer can configure a dynamic pricing system to adapt to different scenarios: load, urgency and demand. Today, such systems are capable of calculating thousands of rates in real time without errors. The advantage is that you’ll earn more during periods of high demand. The downside is that if configured incorrectly, prices could scare customers away.
Operational data analytics
Analytics reveal a business’s weaknesses. But statistics show that only 22% of logistics companies have access to all the necessary data. If you implement analytics, you’ll outpace your competitors. The upside is that you’ll start to see the real picture. Downside - you need to know how to interpret the data (this is what data science specialists do).
What to do right now
LLC «FabriQuanta» experts recommend: if you don’t have a programmer, start simple - for example, identify which area has the highest costs: routes, prices, or a lack of analytics. Next, find a specialist and give them a specific task. A programmer isn’t just someone who builds you a website. First and foremost, they’ll help your business operate more efficiently and earn more.
The logistics business can be improved through variable delivery pricing. A programmer can configure a dynamic pricing system to adapt to different scenarios: load, urgency and demand. Today, such systems are capable of calculating thousands of rates in real time without errors. The advantage is that you’ll earn more during periods of high demand. The downside is that if configured incorrectly, prices could scare customers away.
Operational data analytics
Analytics reveal a business’s weaknesses. But statistics show that only 22% of logistics companies have access to all the necessary data. If you implement analytics, you’ll outpace your competitors. The upside is that you’ll start to see the real picture. Downside - you need to know how to interpret the data (this is what data science specialists do).
What to do right now
LLC «FabriQuanta» experts recommend: if you don’t have a programmer, start simple - for example, identify which area has the highest costs: routes, prices, or a lack of analytics. Next, find a specialist and give them a specific task. A programmer isn’t just someone who builds you a website. First and foremost, they’ll help your business operate more efficiently and earn more.
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