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Key Logistics Trends in 2023

In recent years, the coronavirus pandemic has affected all sectors of the global economy. Logistics companies have to change their strategies to be more innovative to reduce losses and meet the new demands of the economy in the face of restrictions. There is an urgent need to respond in a timely manner to the rapidly changing trends in logistics in 2023.

The main ones include the following:

Digitalization and artificial intelligence

The pandemic contributed to a shift in the vector of business development, which also affected the digitalization process. Companies now face the challenge of integrating human capabilities and artificial intelligence. Investments in the development of information technology are considered one of the best ways to reduce the costs of companies. Severe quarantine restrictions have underlined the clear need for such innovations. Logistics companies are increasingly introducing new systems for managing warehouse and transport operations, new IT solutions to optimize logistics solutions, and also improve existing ones.

Elastic logistics

The market is governed by the law of supply and demand, the ratio of which is sometimes unpredictable. In this aspect, thanks to elastic logistics, it is possible to increase and decrease capacities in the supply chain, and quickly adapt to changing realities. The "flexibility" of logistics helps to reduce costs and not lose potential profits.

Focus on online commerce

The global Covid-19 pandemic has significantly affected the market structure and growth of online shopping and helped remove barriers to taking advantage of e-commerce. Electronic alternatives to offline offerings have been launched to meet dynamic consumer demands. The conservatism of some companies in this matter has led to forced closures or significant losses.

Green logistics

Global warming and human impact on the environment are no longer considered abstract concepts, but the specific problem, which is being addressed in all spheres of life. The logistics industry is also no exception. Green Logistics - a new concept in this area, aimed at reducing the industry's impact on the environment. There are many ways to prevent pollution by green logistics companies - optimizing loading, optimizing the route, choosing a more environmentally friendly mode of transportation, etc. In the future, this trend is only expected to further strengthen.

Last Mile in logistics

This is the last stage in the delivery of goods to the buyer. At this stage of the supply chain, there are some difficulties, the main of which is the speed of delivery. In order to compensate for delays in global transportation, courier services are trying to make the most of the efficiency on the last mile. Only in this case, they will be able to manage the situation, meet the requirements of the market and strengthen their position in the business.

March 28, 2023

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May 26, 2023

Efficiency and Cost Savings: The Advantages of Multimodal Transportation

Shippers all over the world use multimodal transportation, and for many reasons, this system has many advantages.

What is multimodal transportation? This is a special type of freight transport, which involves the use of more than one mode of transport to deliver goods from the supplier to the buyer.

It is important to note that multimodal transportation involves changing only the method of shipment, without any changes in the handling of goods. For example, if goods are shipped in a specific container, the shipping method will change, but the container will remain the same.

Advantages of multimodal transportation

Multimodal transportation has a number of advantages that make this system one of the most commonly used in global logistics, namely:

- Reduced transport costs

- Better logistics management, combining the advantages of each mode of transport

- Using the same container reduces the time of loading, unloading, and handling of general cargo

- Fewer checks and inspections after sealing cargo units and containers

- Better item tracking

- Reduced risk of product loss due to theft or damage

- Reducing the cost of monitoring goods

- Reducing the time of cargo transportation

Multimodal transport services optimize air, sea, road, and rail transport from start to finish, and in an ever-evolving logistics environment, the network of partners is expanding. As Alliance Logistics, we specialize in multi-modal transport with the most cost-effective logistics solutions you may need, ensuring you achieve maximum efficiency while reducing costs and protecting the environment.

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May 12, 2023

6 Ways to Reduce Costs in Logistics

Transportation is an essential component of the supply chain, and every industry participant strives to receive the most modern transport services at reduced prices. Transport logistics costs are skyrocketing these days for a variety of reasons. Inadequate planning, lack of transparency, and poor decision-making can lead to higher prices, missed deliveries, unhappy customers, and loss of business.

Listed below are 6 proper ways to decrease your logistics costs.

1. Consolidation of supplies

The company's delivery rates are determined depending on weight, distance, and other factors. Consolidation of shipments is one of the strategies suppliers use to make fewer trips and profit from lower rates on bulk orders.

2. Decentralized warehouse services

Another way to reduce transport costs is to use multiple decentralized warehouses. Having goods in decentralized warehouses ensures that they are already in proximity to the customer, allowing greater flexibility and shorter delivery times. Professional inventory management and communication are essential to plan optimal transport routes and save costs by knowing exactly how much and what types of goods are in stock.

3. Automatic container loading system

When handling bulky and heavy goods, loading and unloading containers is a critical part of the workflow. Using an automatic container loading system is a great way to reduce transport and labor costs, avoid product damage, and increase productivity by being able to load or unload all goods at once.

4. Use of technology

The COVID-19 pandemic has shown unequivocally that documenting processes on paper is no longer relevant. There are enterprises for which the digitalization of processes may seem like a significant change in material terms. However, in this case, the benefits outweigh the costs. Digital records give logistics managers a better understanding of the entire supply chain. Computerized record-keeping allows companies to find and correct shortcomings that are costing them money.

5. Reduce the size of your vehicle fleet

Finding effective solutions for fleet cost management can be quite a challenge. It is possible to cover more territory in less time by effectively distributing orders between available vehicles. When fewer trips are required to accommodate more deliveries, it is possible to decommission vehicle assets, further reducing costs.

6. Regular vehicle maintenance

Preventive maintenance can help you avoid breakdowns and keep your vehicle in top condition. With the right regular vehicle maintenance program, you can keep track of how far you've driven, how many times you've stopped, and how much fuel you've used. Good service helps keep vehicles running, resulting in lower fuel consumption and energy wastage, reducing transport costs.

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April 28, 2023

Door-to-Door Service: Efficient and Reliable Way to Transport Your Cargo

The development of infrastructure and logistics requires companies to improve the solutions offered to customers constantly. First, the principles of ensuring efficiency and safety are taken as a basis. Door-to-door service is ideal for these purposes. The essence of the service is that the carrier company assumes all responsibility for the preparation, shipment, and transportation of the cargo, which allows you to save time and control each stage of the process.

Advantages of door-to-door service

1. At all stages of transportation - from the moment the cargo is received to its delivery to the destination, it saves the time and effort of the customer, who entrusts the control to the carrier. It also saves the customer from unnecessary formalities.

2. Maximum protection of cargo against the risk of damage is ensured.

3. After loading, the goods are sent to any part of the world without intermediate storage and handling.

4. It is recommended when sending bulk cargo.

Disadvantages of door-to-door service

1. Sometimes, depending on the type of cargo, the use of this service is not possible. Door-to-door delivery is not applicable, for example, to liquid and bulk cargo in large volumes, and dangerous goods (additional verification is required).

2. Higher cost compared to other modes of transportation.

3. Without stable sales, this scheme is unprofitable for the client.

Service Features

The carrier company prepares all the necessary accompanying documents within the door-to-door service, carries out direct transportation, forwarding, customs clearance, and unloading operations upon arrival at the destination, and assumes all duties and responsibilities related to cargo delivery. During cargo transportation, the company provides a comprehensive approach, involving several types of transport, as well as intermediaries with whom it negotiates directly.

Cost Calculation

To determine the final cost of door-to-door service, it is important to consider several important points:

- cargo volume/weight;

- the length of the transportation distance;

- time required for delivery;

- transport costs;

  • cargo insurance.
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