How Small Businesses Can Get Better at Dealing With Logistics

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It’s not uncommon to hear the term “logistical nightmare” when running a business. What happens when logistics become a major problem, especially for a small business? Small business owners need to be sharp when it comes to understanding every single part of the logistics to make for an efficient and cost-effective company. What does it take to be better at logistics as a small business?

Understand It from the Bottom of the Chain

If you are in the field of logistics and you are tasked with transporting items from one location to another via a truck, you may not have a hand in the physical transportation, but you need to look at how your workers are able to deal with the stresses of doing this job that underpins the entire company. Truck drivers can easily run the risk of overworking and this can cause a myriad of problems for your business, most notably a truck accident lawyer may need to get involved if a major accident has occurred. Business owners can easily become preoccupied with the needs of the business more than the needs of the employees. We must understand it from the very bottom of the chain.

Understand the Objectives

You will need to put a plan in place that meets the needs of the customers, but you also need to align this with the company’s overall strategy. If you are a service that delivers items, you will need to find ways to fulfil this to undercut the competition. If your aim is to provide cost-effective services, you will need to invariably cut your costs at the expense of other components of the business. Understanding the objective sounds simple, but because it covers a multitude of disciplines within the business, it requires big-picture thinking and understanding how each individual component works together to deliver that service that meets the business goal.

Prioritise Visibility

Being a better business in terms of logistical practices, whether you are running a logistics business or not, all hinges on collaboration, visibility, and transparency. We have to remember that every part of our business can run the risk of being fragmented because of common business challenges. Remote working is a very good example that requires a higher level of engagement to ensure that your business is able to do everything it promises while also prioritising the needs of your employees. Morale is everything, especially when you have a number of moving parts.

Have a Scalable Solution

If you want to start working at an international level, it’s important to get good at logistics on a small scale first. Having an approach that is scalable will ensure that you become better at the logistical side of things. Scalability is critical as we develop, and as small companies can tend to find the scaling-up process difficult because they’ve only worked at improving their business on a much smaller scale, having the right solutions as part of the business plan to allow a natural, organic approach to scaling will ensure that every aspect of the business becomes better at this almighty task.

Small businesses can make big mistakes, especially when it comes to the logistical side of things. Make sure you are actively working on this.

What Is Route Management Software?

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Route management is the planning of the most efficient routes to manage delivery operations and services. Due to COVID-19 lockout constraints, more small firms have added local delivery to their service offerings in the last year for various reasons. Because of the hefty costs, several establishments have chosen not to utilise Postmates, Uber Eats, and DoorDash.

There has also been a shift from third-party delivery services by businesses outside the restaurant sector. Instead, they use a logistic route planner to create their in-house delivery teams. The COVID-19 stay-at-home directives allowed businesses to remain open and retain personnel.

Instead of relying on delivery drivers from outside their organisation, businesses may retain the same high customer care they’ve honed in their brick-and-mortar stores by using an in-house delivery team. Route management software may help your delivery firm, but how?

Route Management

Rout management is the development of the most efficient routes to handle delivery operations and services more effectively. Companies in the delivery industry can’t survive without effective route management.

In addition to saving time and money, route management may also minimise the time and resources needed to complete a task. You may, of course, plan your trip manually; nevertheless, an excellent software solution is preferable. Companies may effectively grow their operations by relying on route management technologies, which provide various advantages of route management. Other benefits of using a route management program include:

1. Optimised Route for Delivery

Thanks to this new technology, businesses may save money on gasoline and labour expenses. Because of this, they can make more deliveries in a single day. How to arrange your deliveries is the most prominent problem of introducing local delivery to your company.

Since most companies we deal with are witnessing a rise in direct-to-customer delivery, they deliver to new locations daily. To handle delivery to any location, they can’t develop and adhere to a single route. A route optimisation tool is required for this.

2. Monitored Route in Progress

With route tracking, it’s simple to keep customers up to date on the status of their purchases. You and your drivers will save time by not having to phone each other to check on the quality of the job.

3. Proof of Delivery Records

You, your delivery driver, and your client benefit from proof of delivery. For proof of delivery, a client may sign for their product, or your driver can snap a picture of where the box was placed.

4. Prevent Delays in the Delivery of Products

Deliveries may be kept on schedule if the route is well managed to minimise delays caused by traffic or bad weather. When these issues arise, arranging an alternate path is necessary. Unexpected circumstances that cause delivery delays are difficult to forecast.

As for manually planning your routes, recalculating the most effective routes on the go is a logistical nightmare. Nearly impossible in actual life. With certain delivery times for shipments, things become much more complicated. On the other hand, Route management software allows you to develop optimal routes in real time as traffic patterns change. The driver’s smartphone app also receives immediate updates to the new driving directions. Drivers may focus on delivering their goods instead of figuring out the best ways to avoid traffic jams.

Bottom-line

Plan effective delivery routes, save operating expenses, and increase income with proper route management software. Using the correct route management software to rapidly automate the development of the most efficient routes based on several parameters, such as the number of destinations, driver working hours, unique delivery time windows, and vehicle capacity.

Using efficient route optimisation software, delivery managers may create settings to assign shipments based on proximity and route distance automatically. Delivery drivers are immediately sent by the optimisation software, which provides them with a map of their delivery routes and any other information they may need along the way.

New Provisional Measures Enforced in Brazilian Ports

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Provisional Measure No. 945 / 2020 was issued by the Brazilian Federal Government, which deals with temporary measures in response to the pandemic resulting from the Covid-19 in the scope of the port sector and on the assignment of yards under military administration.

This Provisional Measure, according to the Federal Government, aims to ensure a safer environment for dockworkers, in addition to recognising the essentiality of Port Operations.

The Executive Order from April 4, changes the Daily call for casual dockworkers, who carry out loading and unloading operations in Brazilian Public Ports.

Currently, these workers are called to engage amidst large agglomerations in the ports, which in times of pandemic is not recommended. The Provisional Measure establishes that the Manpower Management Agencies must carry out the call for casual dockers by electronical means only, so that the worker appears at the port only at the time needed and in order to avoid further agglomerations within port area.

Manpower Management Agencies will not be able to call or engage in operation any dockworker who:

  • a) present symptoms compatible with covid-19;
  • b) have been diagnosed with covid-19;
  • c) who are pregnant or lactating;
  • d) aged 60 or over; and
  • e) who have immunodeficiency or respiratory diseases or chronic or severe pre-existing diseases.

In this context, the Provisional Measure assures workers in the above situations the right to receive a monthly compensatory indemnity of 50% of the monthly income average received between October 1, 2019 and March 31, 2020, as long as impediment persists.

It is worth mentioning that casual dockworkers, retired or enjoying any other benefit granted by the General Social Security Regime or their own social security regime, as well as those who perceive the assistance benefit for individual dockworkers, provided for in Law No. 9,719 of November 27, 1998, will not be entitled to the indemnity provided for in the Provisional Measure.

The payment of compensatory indemnities will be borne by Port Operators and will be calculated in proportion to the amount of the monthly service demanded.

The aforementioned amount will be calculated and collected by the Manpower Management Authority and later passed on to the casual dockworkers.

Port Operators will be entitled to a discount on port tariffs in the amount equivalent to the increase in cost, resulting from the payment of indemnity, or economic and financial re-balancing of their contracts, in cases where they have lease agreements with the public port.

In the Provisional Measure, it was also adjusted that the benefit to be paid to dockworkers may be excluded from net income for purposes of determining corporate income tax and Social Contribution on Net Income of legal entities taxed by taxable income.

The Provisional Measure establishes that in the event of unavailability of casual dockers to meet the work demand, Port Operators may freely hire workers with an employment contract for a specified time to carry out services as foreman, block, stowage, cargo conference services, cargo repair and vessel surveillance.

The hiring of workers with an employment relationship based on unavailability cannot exceed the period of 12 months. In addition, it will possible to engage contract directly with workers that or not authorised or registered with the Manpower Management Authority.

Said Provisional Measure, guarantees Port Operators flexibility in the exclusivity of hiring labour from the Manpower Management Authority system.

It is worth mentioning that the new rule issued by the Federal Government, considered unavailability of port workers as any cause that results in the immediate non-fulfilment of calls submitted by Port Operators to OGMO, such as strikes, shutdown movements and standard operation.

Finally, the Provisional Measure encourages multi-functionality, to ensure that port operations are not suspended or delayed due to a lack of qualified labour.