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How to fix the visible and invisible losses logistics companies face

With customer demands for faster delivery surging, logistics service providers are under constant pressure to act. Some are looking at ways to save on costs to fight the battle. Although reducing the costs will only marginally affect the bottom line, it is not an appropriate long-term solution.

As the logistics industry grows increasingly competitive, it's more important than ever to maximize revenue and minimize losses. However, even the most efficient and well-managed logistics operations can experience "revenue leakage" – lost revenue that occurs as a result of inefficiencies, errors, or inattention to detail. In this blog post, we'll explore the various causes of revenue leakage in logistics businesses, and provide actionable strategies that business owners and logistics managers can implement to prevent it.

Time is money

Not all losses are monetary. The longer the time spent knowing which leg of shipping your client's shipment is at, the lesser efficient your process becomes. While it is fine to do so manually when the number of clients is small. But as your business grows, huge volumes with tight deadlines cause helter-skelter. Shipments take varied routes including one or all of the modes of transport available. Digitalizing all your transportation data relieves you from managing availability, tracking vehicles, and estimating arrivals. Alerts and notifications keep all stakeholders informed in case of timely or known delays. Faster shipment processing breeds more shipments handled and in turn more revenue.

Are your payments and receivables in order?

Revenue delay affects your company's ability to pay your bills and meet expenses on time. In many cases, the reason LSPs don't receive timely payments because they don't send invoices on time. It is difficult to keep track of sending of invoices sent manually. An easier way of tracking invoices, whether sent, cleared, or followed up while ensuring the timely progress of the shipments is with workflow automation.

From billing to accounts updation, the workflows ensure task completion before proceeding to the next step. Logi-Sys, an all-in-one freight forwarding and logistics management software lets you handle all payments, follow-ups, and receivables along with accounts. The solution allows external communication as well as internal to work with transparency.

Are you losing revenue by paying fines due to poor compliance?

A lot goes into moving goods from one country or even a city to another. It involves knowing current tariffs, customs duties, currency value, transit formalities, and other compliances. Again, with volumes, processing invoices with the latest rates can quickly run out of control if done manually. In domestic and international trade, when you overrun a free period or do something incorrectly you pay fines like demurrage and detention. A cloud-based solution like Logi-Sys can help with always-updated databases for Classifications, Duties, Notifications, DEPB, Drawback, Ports, Exchange Rates Etc. All digitalized processes allow for better forecasting to reduce your fines and clear customs smoothly.

Loss due to slower quotation replies

Another invisible cost is loss due to late replies to customer quotations. Logistics companies have tie-ups with multiple transporters, carriers, and shippers. Each of them has its own tariff and unique offering. Speed of delivery matters as much as the rates themself. Gain an edge over your competitors by providing customers with quicker quotations.

Potential revenue loss with improper lead management

Increased competition in the logistics industry has led companies to find unique ways to attract customers. Without an integrated and automated solution, managing leads while effectively handling operations can be complex. You want to build on your prospects' interest with targeted campaigns and follow-ups. Prospects that aren't converted result in a revenue loss for your company. Inbuilt CRM and lead management help logistics companies pursue leads more effectively.


A supply chain consists of multiple touchpoints and stakeholders. Not having sight and complete control of each of the links in the supply chain can erode your revenue. Adopting technologically advanced solutions like Logi-Sys, designed with decades of experience, helps plug the gaps in the process and prevent revenue leakage.



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