INTELLIGENT BRANDS // Software for Business
How does global inflation affect the supply chain and how should it be dealt with ?
Applied logistics intelligence can optimize the processes within the supply chain to avoid high-cost increases for end- customers .
The rising cost of living and the dollar increase represents issues with a straight impact on salaries , affecting their ability to purchase goods and services .
This situation directly impacts the companies ’ production costs , which increase because manufacturers must pay more for the necessary inputs to make their products . It generates an increase in the price for the end-user .
In addition to the above , global inflation , the rising dollar and other economic variables that generate interruptions in the supply chain further worsen a scenario in which it is already complex to access certain materials or products , given that they are produced , especially in some areas of the world .
To minimize price increases and avoid passing them on to customers , companies can effectively optimize their resources in the logistics process .
What is the role of technology in this scenario ?
In a scenario of high accrued inflation , it is common for companies to be required to increase the costs of their products or services to maintain a healthy revenue margin for operations .
In this sense , transporting products and raw materials ( either from suppliers to the production place for transportation between distribution centers or delivery to their final customers – the so-called last mile ) is one of the most expensive processes in a company ’ s operation . It is due to the need for large cargo vehicles that run on fossil fuels , a resource particularly affected by this type of economic phenomenon .
Technology , in this sense , is an ally in the search for savings because it allows an efficiency that would not be reached manually .
How does it work ?
Optimized planning delivery routes should not waste fuel in the process , thus reducing logistics costs and increasing the satisfaction of end-customers by providing them with their products in a shorter time .
SimpliRoute is a company dedicated to logistics intelligence , with a presence in Latin America , which offers functionalities that improve the service to the routers and those who receive the deliveries . By allowing real-time monitoring of vehicle routes and communication through messaging , it provides better traceability , security and detailed reports on the operations of companies so that they can make decisions based on their data .
The current inflation that our economy is experiencing is a reality , but what is an option for companies is to optimize their operations with the help of technology , algorithms , Machine Learning and Artificial Intelligence ( AI ).
Moreover , the costs of this software are not high , so it is possible to recover the investment as soon as the software is implemented .
Mitigating the damaging effects of the complex economic scenario we are currently experiencing is within reach of companies . The final customers , who receive this accumulation of increases , will be grateful . p
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