As the supply chain industry launches into the era of massive e-commerce, implementing a dock and yard management solution seems inevitable and necessary. Except for the apparent benefits, the return on investment for integrating a dock and yard management solution remains successful given the industry's current state.
The supply chain, in its entirety, continues to expand. As the pandemic endures, the need for the services responsible for same-day and fast shipping increases daily. One area of the supply chain in need of an overhaul lies within the dock and yard management and remains crucial to company growth.
Dock Management Barriers to Efficiency
Many issues plague the dock and yard areas within the supply chain. Essentially, the difficulties create hurdles to efficiency and challenge a positive return on investment. Some of these problems include:
- Poor accountability. Entry and exits are not adequately documented.
- Inefficiency. Failures within a yard management solution lead to higher management costs and reduces the ROI.
- Yard gridlock. This leaves drivers upset and prohibits the moving of freight efficiently while reducing freight visibility.
- Disconnectedness. The overall flow of the dock and yard becomes interrupted and reduces the ROI.
ROI Depends on Dock Volume and Activity
Much like the remainder of the industry, the ROI remains dependent on volume and activity. The amount of use of the dock and yard will be affected by the market. If the market declines, the business follows suit. If the market increases, the same logic applies. However, some factors will affect dock capacity and activity, such as proper management. By employing a dock and yard management solution, volume and activity become simpler. This not only consolidates, structures, and orchestrates organization based on real-time data; it will also increase the desirability to use the facilities over competitors, i.e., developing into a shipper of choice becomes more critical.
There Are Also Indirect Savings to Consider
Some of the time, applying an effective yard management solution comes with indirect savings to consider as well. Becoming the shipper of choice contains a level of competition that all supply chain companies want to be a part of.
Essentially, according to Inbound Logistics, remaining the shipper of choice stays one of the most lucrative ways to save and even make money for businesses. This means the carrier chooses this business and prefers to use the services provided by the shipper of choice. However, this also means drivers have options. Also, a better yard management solution means fewer delays for customers. This remains the ultimate benefit for customers and potential customers. In turn, that adds to indirect benefits that include team member happiness, improved throughput by reducing the chaos on the dock, and improved customer experiences due to on-time, in-full deliveries.
Reap Stronger Yard and Dock Management ROI With the Right System
Ultimately, more robust dock and yard management ROIs benefit businesses when applying the correct yard management solution. The exemplary system cleans up the disorganization of the dock and yard. Manual processes not only keep the software outdated it also holds potential customers at bay. Without proper optimization, money will continue to deplete. A yard management solution seems the right move for anyone looking to make big bucks from the booming e-commerce industry.
Success in 2021 begins with transitioning into the modern decade of software for the supply chain. A more ingenious yard management solution drives profitability and conveniently also gets management into a more efficient model for the docks and yards. Partnering this with the right dock scheduling system will prove influential. Request a C3 Solutions demo to get started.