Typically, a yard functions as a junction between a warehouse and transportation system. It forms a critical link in logistics management practices of a supply chain eco-system and can impact its overall efficiency.
In a recent report by the Department of Transportation’s (DOT) National Freight Strategic Plan, the DOT announced that road traffic congestion costs the trucking industry nearly $27 billion annually due to lost time and excess fuel consumption. Similarly, as per the estimates based on the study conducted jointly by logistics firm Transport Corporation of India (TCI) and IIM-Kolkata, the cost of delay was $21.3 billion per year in India.
In order to meet customers’ increasing expectations, it’s imperative for organizations to focus on a customer-centric, fast-paced supply chain to consistently deliver products quickly and effectively. Yard management activities are important and can determine the efficiency of the supply chain eco-system.
Effects of manual yard processes
According to a recent survey by Aberdeen Group, nearly 60% of businesses still employ manual practices for their yard management. These manual practices cause 80% of trailers to sit idle in the yard across facilities, worldwide and result in high operational costs, inefficient scheduling, delays, and data inaccuracy. This is particularly true in the following businesses:
- Just in time production operations
- Expansive yard operations requiring management of a large number of private fleets or third-party trucks and trailer units
- “Campus-style” environment, wherein trucking assets move between buildings 24×7 to transfer raw materials, packaging supplies, and/or finished goods
- Incoming loads as a strategic element of optimizing inventory fill rates that need expediting and prioritization of activities
- Perishable goods/pharma products
The solution to inefficient yard logistics
The absence of real-time data and end-to-end visibility in various manual yard operations is the root cause of many of these problems. In order to meet the customers’ high expectations and stay ahead of the competition curve, businesses need to digitize and streamline their operations.
SAP Yard Logistics (SAP YL) can help you improve your productivity and bottom line while reducing operational costs and your business’ carbon footprint. Get a leg up on the competition by implementing SAP YL and streamlining your operations. As SAP’s strategic preferred business partner, Krypt can help you implement SAP YL on-time and under budget. We utilize our years of expertise to provide you with the best solutions to fit your specific needs.