Most logistics companies planned on digitizing their operations before the COVID-19 pandemic, but the implementation was at a snail's pace. The coronavirus emergency exposed the fragility of the existing supply chain systems. Fortunately, the pandemic is doing an excellent job of accelerating the digitization of the industry.
"COVID-19 sped up the rollout of the digitization plans," said Beth M. Umali, chief operating officer at Le Soleil International Logistics Company. She added Le Soleil spent the last year under strict lockdown conditions to reinvent itself and adopt digital technologies to modify its business model and provide new revenue and value-producing opportunities.
Over the past months, the company tapped the expertise of Shiptek Solutions Corporation to access its plethora of modern solutions for its digital transformation. Shiptek is the creator of the shipping and logistics digital platform called XLOG, an end-to-end solution for industry players across the globe.
Le Soleil's rebranding and digital push immediately saw a positive impact on the company with marked improvement in data collection, which is often done manually and prone to human error and delays, is now fully automated.
The digitization also expedited the company's logistics processes, strategies, and systems. Technology created opportunities for Le Soleil and saved money on operating systems, accurate order fulfillment and lost productivity.
Enhanced efficiency
Umali also an increased efficiency since adopting the XLOG systems.
"Our customer satisfaction has never been this great! XLOG greatly enhanced our performance, not only with our customers but even with our suppliers," she added.
Shiptek Chief Operating Officer Jose Emmanuel Ynion said, "We envisioned XLOG to provide the digitization solutions for the logistics industry, which is very slow in coming because of the amount of investment required." Conservative estimates to digitize a logistics firm at P5 million, excluding the software maintenance.
The platform, he added, aims to solve all logistics challenges by simplifying processes, improving tracking and security, and easing transaction documentation. It is also
Anchor financing
Recently, XLOG signed a blockchain-enabled anchor financing deal with the Union Bank of the Philippines by providing truckers and forwarders with extended credit terms.
"It's like a community-based financing with the freight forwarders acting as the "anchor," Ynion explained. "The credit facility offers a win-win situation for both the truckers and the forwarders as it allows them to have longer payment terms while at the same time availing of the payments earlier than what was initially agreed on.
"There are many things that we can enhance when it comes to the prices of the service providers' charges. So, of course, given the state of the country and even outside the country, if the prices of shipping lines and trucking companies go up, of course, the prices of goods sold to consumers go up," Ynion added.
Best way to manage supply chain
Indeed, many businesses are quickly moving to online channels for their customers. All of this and more have a positive influence in the shipping and logistics industries in many different directions, Umali said, in ways that "nobody could have anticipated."
By integrating digital processes to support the large daily volumes of data better, logistics and supply chain companies will have the ability to optimize their procedures in areas such as resources management, inventory control, and customer experience.
"Last year saw more initiatives in supply chain and logistics management than the past five decades combined," Umali explained.
Le Soleil provides a holistic logistics solution to customers at all levels of business, offering the most cost-effective rate matched with personalized and efficient service. The company is a registered domestic and international freight forwarder, non-vessel operating common carriers (NVOCC), cargo consolidator, and breakbulk agent. Le Soleil has also been the exclusive agent of the Hoyer Global Transport Group– one of the world's largest bulk logistics providers and in moving liquids by road, rail and sea.