Why Does Your Logistics Service Needs an On-Demand Application?




  • — April 12, 2019

    If we see the last century then there have been many occasions which have impacted the humanity in a great manner. Whether it be the inventions of personal computers, internet or aeroplanes, all these gigantic inventions have totally replaced the traditional methods employed in their respective domains. Whereas, products or services like Facebook, YouTube, and Google have initiated a new domain all over. Uber is also such service which pioneered the On-Demand Taxi Services.

    Just after the few years of its launch it gained huge popularity among the masses and the classes. Moreover, it opened the gates for other industries to try the Uber-model. Soon after, the food delivery services and eCommerce services jumped in and many other industries started the Uberization process too.

    Logistics Services were still doing it the traditional way. Due to which it faced many issues both finance & quality wise. Uberization of Logistics was the need of the hour and many companies gradually started using this method instead of the traditional ones. In this blog we’ll get to know how you can use an On-Demand service for your Logistics business and what are its benefits.

    Why there is a need of an On-Demand Service is Truck & Logistic Industry?

    Trucks contribute the most when it comes to the transportation & logistics industry. According to a study, truck contributes to almost 80% of total freight in US. The truck industry is a rapidly growing at an exponential rate. However, it is still an inefficient and fragmented industry.

    One of the biggest reason for this inefficiency is the return of the empty containers. The truck returning with an empty container is a blatant loss of opportunity. It is because truck with an empty container post delivery is as costly as a truck when it’s full.

    Moreover, the amount to move those empty trucks is a staggering $ 16 billion on an average per year. To add to the woes any miscommunication between the two parties which could cause delay which results in rise in the expenditure. And at last to make the matters worst; they use a middleman who matches the two-suitable party.

    Usually, the middlemen take 20% commission; however, their inclusion makes this process opaque and highly susceptible to fraud and exploitation. All these factors increase the total cost for the logistics industry owners.

    How an Uber-Like App for Trucks Can be a Solution

    Uber has been a revelation in Taxi Services. It has the potential to have a similar effect in the logistics industry too. An Uber-Like App specially built for trucks can eradicate the need of middlemen. It can enhance the transparency in the logistics cycle by removing middlemen out of the equation. Introduction of an On-Demand App for trucks can subsequently lower the total cost, eliminate delays, wipe-out any possibility of fraud by middlemen, and most importantly, it won’t let any truck return with an empty container. Let’s look at some more benefits of the Uber Truck below.

    Benefits of On-Demand Truck App

    In the logistics system there are mainly three parties or actors: 1. Truck Owners 2. Drivers 3. Shippers. Let’s discuss benefits of each actors one by one.

    1. Benefits for Truck Owners

    Overall Control Through Admin Panel

    A well-organized admin panel allows the truck owners to establish and execute their actions quickly with utmost accuracy. The deployment of an Admin Panel makes the workflow simpler and effortless for the truck owners.

    Real-Time Tracking

    They can track every activity of their drivers and hence, they can define specific routes, set speed limits, and check on any violations or misdeeds by the drivers.

    Enhance Productivity & Efficiency

    Due to app, there won’t be any empty carriage returning, hence it will increase the productivity and the efficiency. Moreover, the owner can assign his trucks to multiple loading points in the same direction. Hence, it would save time and result in more production.

    Customer Satisfaction & Business Expansion

    The Uber-like app for truck results in on-time delivery of consignments and real-time solutions of problems. These factors offer utmost customer satisfaction. Thus, it results in customer retention.

    1. Benefits for Driver

    Receive Requests from Application

    Drivers can receive requests via an app and can accept or reject as per their schedule and workload.

    Get all the Information in One Go

    The On-Demand app helps the drivers to get complete information such as the pick-up time, location, Drop Off, Load weight, and any other additional instructions.

    Paperwork Made Easy

    Driver needs to complete a lot of paperwork. Mostly which includes bills of freight, gas station, and tolls. The app enables driver to log all the bills within the app.

    1. Shipper’s Benefits

    Notification & Tracking

    Shippers receive notifications once the booking is done. Moreover, they also get real-time updates and tracking of their shipment.

    Secure Payment

    The On-Demand App enables the shippers to pay securely through payment gateway. They receive a receipt once the package is delivered.

    Feedback & Reviews

    The customers can share their experiences and give reviews by using this app.

    Conclusion

    Logistics is a vast industry and trucks are its most significant component. However, it bears tremendous losses due to factors which no one had control. But, with the advent of Uber and Uberization in various industries, truck owners have finally found the solution in an On-Demand Truck Service. So, if you are someone who owns a logistics firm, then you must find a well-known mobile app development firm to build your On-Demand Truck Mobile Application.

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    Author: Nasrullah Patel

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