Image of a glass full of currency notes and coins to represent costs involved in logistics

How to manage costs involved in logistics with technology?

What are the types of costs involved in logistics operations? Expense management in logistics is a tedious task owing to the complexity of the industry that involves both expenses within the firm and on-road expenses while delivering shipments. The costs involved in logistics revolve around the invoice expenses, operational expenses and risk mitigation expenses. Why is managing logistics expenses challenging? Increasing costs is a major challenge recently in the logistics industry. According to a study, 44% of fleet managers say increasing costs is a top challenge (Source: G2 Tech Marketplace). Moreover, payment processing in logistics is often time-consuming and prone to error owing to the enormous amount of paperwork and manual processing of invoices. According to a study,  49 percent of fleet managers spend 1.5 to 2 hours on invoicing (Source: Netradyne).  Also, limited payment options are a major challenge. It can be difficult to make on-road payments when drivers only have cash or lack an exact amount of money, especially in an economy that is rapidly becoming digital. It might also lead to theft or misuse of cash if there is a lack of real-time visibility.  How to manage costs involved in logistics with technology? As mentioned earlier, there are multiple logistics expenses that need to be streamlined efficiently. However, unified payment services with online bill payments, spend control and real-time visibility will be the best solution to manage costs involved in logistics. Let’s Wrap Up! Expense management in logistics is a time-consuming and complex process as it involves managing payments within the premises as well as while on the road. The costs involved in logistics include invoice expenses, operational expenses and risk mitigation expenses. However, unified payment services with online bill payments, spend control and real-time visibility can help with efficient payment processing and cost management in logistics. Moreover, implementing technological solutions for cashless payments, financial assistance, preventive maintenance and fleet management will increase efficiency and aid in cost reduction.  Axlerate provides a unified digital logistics management platform with transportation management solutions to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.