Minimizing Cargo Transportation Costs

In Transportation Management Software by Vineeth K Kandathil

carego

Cargo Transportation concerns the movement of goods from a source to a destination. The goal for any business owner is to minimize transportation costs while also meeting demand for products.

Business owners rely on the Crago transportation Service Providers to achieve this goal. Transportation costs generally depend upon the distance between the source and the destination, the means of transportation chosen, and the size and quantity of the product to be shipped. In many cases, there are several sources and many destinations for the same product, which adds a significant level of complexity to the problem of minimizing transportation costs.

Over years, number of solutions evolved to enable the transporters to ease the operational challenges. These solutions were either built in house or procured from vendors with huge upfront investment. These solutions need specialized skill sets and infrastructure to operate.

The skilled resource for managing these legacy solutions are getting more scarce and thus more expensive. The ever continuous changes in software technology calls for matching upgrades of the older versions solution. The businesses thus must either to invest heavily in upgrading to keep up with changing technology, or else have to bear the risk of running applications in unsupported platforms, both of which are undesirable and involve business risks.

It is in the above context that transporters need to look at the emerging Software as a Service. (SAAS) model, which is an alternative to the standard software installation on machines within the business environment. In this traditional model, the user must purchase, install and maintain the server, install the business application and configure the- thus add to the Total Cost of Ownership (TCO).

How inbound process works?

Inbound process in OptiE-Invoice enables organizations to automate and stream line the processing of supplier invoices. It automatically extracts information from any incoming invoice, validates data and transfers it to your ERP (SAP) system. The system validates electronically generated E-Invoices from IRP Portal as well as manual invoices (Hard copy and soft copy). It extracts data, validates with already created Goods receipt, Purchase order etc, highlights discrepancies (if any) and post the data automatically to your ERP(SAP) system( If data matches).

Benefits from adopting the SaaS Solution
1.Reduced time to benefit

Different from the traditional model, a SaaS Solutions is already installed in the Cloud, and pre-configured. All your branches can access this central software using a standard web browser. This reduces the time spent in installation and configuration, without going through the hassles of on-premise software deployment.

2. Lower costs

SAAS Solutions has a differential regarding costs since it usually resides in a shared, multitenant environment where the hardware and software license costs are low compared with the traditional model. Maintenance costs are reduced as well, since the provider owns the common environment and cost of the environment is shared with multiple customers.

3. Scalability and integration

Solution reside in cloud environment which is auto scalable. Comparing with the traditional model, you do not have to buy and install more server capability with growing business volumes.

4. New releases (upgrades)

Both scaling of hardware to meet high load conditions and the frequent upgrade of software versions are automatically taken care in the SaaS Model, thus ensuring no business disruption. Cost and effort associated with upgrades and new releases are lower than the traditional model that usually forces the user to buy an upgrade package and install it, or to pay for specialized services to get the environment upgraded.

5. Easy to use and perform proof of concepts

SaaS offerings are easy to use since they already come with best practices and samples inside.

6. Carego Cloud in one SaaS Solution that is offered by Innoval Digital Solutions Pvt Ltd for Cargo Service Providers.
Summary
Article Name
Minimizing Cargo Transportation Costs
Description
Cargo Transportation concerns the movement of goods from a source to a destination. The goal for any business owner is to minimize transportation costs while also meeting demand for products. Business owners rely on the Crago transportation Service Providers to achieve this goal.
Author Name
Publisher Name
Innoval Digital Solutions

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About the Author

Vineeth K Kandathil

Head – Digital Product delivery and implementation. Vineeth is a leader with over 15 years of track record in IT. He is strategic visionary and demonstrated ability to inspire/mentor teams to create world class products.

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