Key takeaways:
- RPA non-invasively integrates disjointed and legacy systems.
- It eliminates errors due to swivel chair operations or manual processing.
- It brings in process efficiency and saves operational costs.
Many large logistics enterprises and shippers use multiple disjointed systems or legacy systems that are developed in-house. Typically, these enterprises operate with two independent information management systems:
- Customer-Facing System: A website or email system used for customer interactions.
- Legacy Transportation Management System (TMS): Utilized by the operations team for backend processes.
However, the lack of integration between these systems results in manual information processing or swivel chair operations, which are inefficient and error-prone. The situation poses a dilemma – to rebuild or to replace.
Robotic Process Automation ameliorates The Dilemma
Leaders in Logistics enterprises face a significant challenge: Should they rebuild their existing systems or invest in new TMS software? Unfortunately, a complete overhaul of TMS infrastructure is both time-consuming and expensive. Based on the Forbes survey, implementation of fit-for-purpose TMS can take around 9 to 12 months at an all-inclusive cost of around $250 to $300 per hour. (Source: Forbes)
Instead of committing to large-scale TMS implementations, Robotic Process Automation or RPA can be a convenient solution. It is quick, easy, and cheaper to implement. It bridges the gap between customer-facing systems and Legacy TMS.
How does RPA work in Freight Information Processing?
RPA enables seamless automation by capturing and transferring data from origin systems (for example, emails or web portals) to destination systems (for example, TMS or ERP platforms).
Once the data is automatically processed into the operations system, such as TMS or any other ERP, then the Operations Team can quickly process it.
Critical RPA use cases for boosting freight efficiency
RPA use case 1: Automate the booking of logistics shipments
- Scenario: Customers book freight through a website or send shipment details via email. These details are then manually entered into the TMS to create orders for the operations team.
- Challenge: Manual order entry, including inputting shipment details and verifying documents, leads to delays and errors.
- RPA Solution: Automate the order processing workflow by capturing data from emails or portals, validating details, and booking shipments in transportation management systems (TMS).
RPA use case 2: Automate logistics freight claim processing
- Scenario: Customers submit freight claims for damaged or lost goods through a website or email. The operations team manually enters these details into the TMS or freight claim review platforms.
- Challenge: Processing claims for damaged or lost goods is cumbersome, involving multiple systems and manual data entry.
- RPA Solution: Automate claim submissions by gathering necessary data, filling out forms, and updating internal systems, speeding up resolution times.
The impact of RPA in Logistics
- Cost Savings: RPA implementation is significantly less expensive than upgrading or replacing legacy systems. Studies show that RPA implementation costs are typically 30-50% lower than traditional IT projects.
- Efficiency Gains: Automating repetitive tasks reduces processing times by up to 90%, allowing teams to focus on higher-value activities.
- Quick Implementation: RPA solutions can be deployed in as little as 4-6 weeks, delivering faster RoI.
- Scalability: RPA can adapt to evolving business needs, providing a flexible solution for integrating disjointed systems.
- Error Reduction: Automation minimizes manual errors, leading to a 99% accuracy rate in data handling.
Simply put
Robotic Process Automation or RPA enables logistics enterprises to non-invasively integrate disjointed systems and legacy systems. It eliminates errors that creep in due to manual information processing. It also alleviates the requirement for overhauling the TMS software that is both costly and time-consuming.
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