11 Oct How cloud-based Cargo Community Systems can enable Business Growth?
A recent study by Gartner cites that 85 per cent of global businesses will embrace a cloud-first principle by 2025. Global spendings on Software as a Service (SaaS) or cloud-based software/applications have been exponentially growing since 2010. As on date, the global enterprise spending on cloud-based software solutions stand at US$208 billion.
A majority of these spends come from the logistics industry. The development of cloud technology has created an interconnected, digital world that carries huge potential for logistics. Experts believe the pandemic and e-commerce have been the major reasons for this shift when community and point-based solutions were in high demand.
Cargo Community System – the most powerful tool?
A Cargo Community System will create a fast lane for pristine paperwork and prevents those bearing incorrect paperwork from causing delays and other inefficiencies. Yes, it enables generation of digital documents and exchange through digital means. Documents such as waybills, delivery orders and manifests are churned out electronically and the status of approval can be tracked end-to-end.
Also, it enables electronic communications amongst Ports, Airports, Customs, Freight Forwarders, Shipping Lines, Airlines, Transporters and other supply chain stakeholders. Exchange of electronic documents like e-Manifest at the Port and Airport can be facilitated by Customs through this single window. Custom clearance data can be reused for a single source of inbound and outbound cargo movement.
How it enables Business Growth?
Technology is pursued as a heavy investment in the industry. However, little do they know about the benefits technology can offer and enable business growth to the organization or the overall cargo community.
Rapid deployment = revenue realisation
Deploying a full-fledged software product at a client location is considered a time-consuming process. On the other hand, a cloud-based model is readily available for plug-and-play. The entities must choose the number of users and the payment cycle to start utilising the product. This way, no extra training is required for users as a SaaS-based platform is user-friendly and ensures ease of use. In a short span of time, businesses can realize revenue and become profitable.
Automation = cost saving & low manual efforts
For a long time, the logistics industry has been concerned about one aspect of the trade, i.e., cost saving. While many tend to cut costs by laying off their workforce, there is always a capacity to cut high costs when it comes to operations. By automating some of the mundane processes and eliminating paperwork, stakeholders can save enormous costs. In addition to this, it also accounts makes way for lower manual efforts thereby enabling expansion that leads to business growth.
Soaring volumes despite zero expansion
85 per cent of the time air cargo is waiting to be processed all the time. Moreover, this on average is a global phenomenon. If waiting times are streamlined across airports with single source of data, online documentation, pre-arrival notifications, advance truck slot management, e-approvals, and secured e-payments, stakeholders can increase their cargo throughput by 50 per cent. Also, it is believed that volumes will soar despite expanding the geographical space.
The SaaS buck never stops
SaaS or cloud-based applications are in high demand in the market. Especially, in a labour-intensive industry like logistics, the use-cases are humongous. Even the smallest of the player can scale up and realize business growth within a few months into business. Similarly, large businesses can cut their cost and streamline their resources. Therefore, the SaaS buck is here to stay forever.
Increased scalability and agility, improved decision-making and risk management capability, and opportunities to reduce wait times and errors are just the beginning of what CCS can offer logistics. As the technology continues to evolve, it will become increasingly synonymous with visibility, flexibility, efficiency and agility.