Leveraging Cloud Telephony For Efficient Logistics Operations

Acefone Editor

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Business Communications

August 22, 2017

6 mins read eye

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(Update: This blog was originally published on 22nd August 2017 and was last updated on 20th May 2020 for comprehensiveness and accuracy.)

More and more businesses throughout the world are outsourcing logistics, i.e. opting for third party logistics (3PL). Given the complicated architecture of supply chains and related operations, it is only logical for businesses to hire logistics service providers.

In India alone, analysts suggest a growth of 8.36% in the 4 year period from 2018-2022 in the 3PL industry. Such growth is indicative of the immense potential of the industry.

However, the 3PL business calls for a robust communication system, which facilitates operational efficiency, thus cutting down on operational costs. In an industry where the mantra ‘time is money’ is more factual than metaphorical, operational efficiency and competitive margins are a necessity to sustain in the market.

For most logistics service providers, cloud telephony solution has emerged to be the armament of choice . Thanks to these solutions, companies can now drive down frequent incurring costs thus creating a sustainable model, allowing them to reduce the overall operational costs and increase efficiency and profitability.

Before we learn and discuss various cloud telephony technologies driving the logistics industry of the day, let us get a brief idea of the traditional business model and methods earlier used on the field.

Pen and paper methods of creating and maintaining a physical copy for transactions was the norm. Though some companies still use this method to keep a track of their deliveries, the problems associated with the same are pertinent.

Misplacing files, wrong input and other human errors were common. The delivery agent updates the order status summary but only after finishing, the day’s work. The same is collated and forwarded to all stakeholders. This can lead to delays and often inaccuracies.

Modern solutions involve the use of smart devices like smartphones or tablets. Delivery agents use the custom-built app installed in these devices to track and complete their deliveries.

Once the delivery is complete, the same application is used to update and share the status with all stakeholders. The solution offers a great alternative to the taxing pen and paper method, however fails to address some operational issues, like:

Unreliable Internet Connection

The prerequisite for the custom-built app is a stable internet connection. However, last mile data connectivity is still a challenge, especially in a developing country like India.

Hence, improper internet connectivity can make this solution obsolete, doing more harm than good. This inefficiency can further result in delays and inaccuracy causing disruption in the logistics cycle.

Dispute Resolution Issues

In case of issues pertaining to misplaced deliveries, prolonged delays, incorrect status updates, etc., most logistics service providers either do not have a contingency in place or the lead-time to find out the inconsistency is very long and strenuous for both the business and customer.

These issues and related delays are caused due to lack of proper communication infrastructure that allows real-time updates throughout the supply chain with or without internet connectivity.

Errors in Data Entry

Logistics industry calls for near perfect data entry to ensure proper functioning. Relying on timely and accurate data, the business cannot afford errors. Businesses often need to convert PDF to Excel to streamline operations for better data management and accuracy.

However, there is no infrastructure in place to facilitate the same for its employees and most importantly for its delivery agents. There is an urgent need to adopt a more convenient method for agents on the go.

These are only some of the many challenges faced by 3PLs. Other challenges faced by 3PLs are order delivery status clarity, lack of communication between the customer and delivery personnel, which leads to high reimbursement costs and in worse cases, increase in COD orders returns.

Cloud Telephony Solutions Change the Game!

Cloud based communications add another dimension to the entire supply chain. It offers a plethora of benefits for 3PL companies like real-time tracking, fastened resolution time among others.

Let us now understand in detail how cloud telephony solutions can help and enhance supply chain efficiency for logistics service providers.

Real-Time Tracking

Using cloud telephony solutions like automated IVR, agents can readily make a call, which automatically updates the delivery status based on the option so selected.

Integrating this service with the company’s CRM system, which can facilitate that all stakeholders get instant notifications. Cloud telephony technology facilitate these advances without relying on internet-connectivity, thus ensuring true last-mile integration.

Easy Monitoring

Cloud telephony solutions allow in time monitoring of all customer-facing calls by recording and analyzing the same. Using analytics tools managers can now easily understand and intervene in case of any discrepancies.

These tools thus, allow businesses to develop and deploy strategic processes, which help avoid supply chain disruptions due to lack of proper communication.

Speedy Redressal

By providing real-time updates across platforms and robust communication structure, cloud telephony solutions help in efficient inventory management and consistent reports throughout the supply chain. Thus, any discrepancies are quickly found and timely addressed; thereby, speeding up issue redressal to a great extent.

Convenient Communication Channel

Logistics service providers endure heavy losses due to failure delivering Cash on Delivery (COD) orders. At times customers are not available and sometimes deny to accept and pay for the products.

Delivery agents therefore call customers before delivering the order. This is called ‘confirmation before delivery’ and helps to ensure the authenticity and availability of the customer.

Cloud telephony solution eliminates the need of added expenditure, allowing delivery agents to make work calls using as many extensions as needed.

Top to Bottom Optimization

Cloud telephony solutions allow the logistics companies to update the order statuses in real-time and grant them the ability to review and optimize the efficiency of other processes like distribution, supply chain, procurement, payroll, etc.

In addition, SMS alerts help notify customers and other stakeholders of the current status. These solutions make consumer data readily available, along with work suites to facilitate on-the go working.

Conclusion

Cloud telephony solutions can easily revamp the entire 3PL landscape and provide solutions for some of the most beaming challenges faced today. IVR, SMS alerts among others can facilitate real time updates and avoid unnecessary disruption due to improper communication channels.

Companies using cloud telephony services have already reported success and benefits. 3PL businesses have described a significant 18% increase in on-time deliveries, in addition to a 30% decrease in losses due to non acceptance of COD orders.

A direct result of these advances along with on time deliveries and a reduction in dispute resolution time is a sharp drop in customer complaints.

Cloud technology thus offers tailor-made solutions for the logistics industry. With economical packages and convenient setup, It is a must for 3PL companies. It is a step in the right direction of revolutionizing one’s company by improving overall operational efficiency and saving time and cost at the same time.

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Acefone provides a broad range of cloud communication services to businesses of all sizes, which includes Hosted Phone Systems, Free Phone Numbers, and Cloud Contact Center Solutions. Being the UK's leading provider of VoIP service provider, we always strive to provide excellent customer service and high-quality custom solutions to our customers.

How GST is Going to Influence the Telecom Sector

Acefone Editor

Author

Operations

August 9, 2017

5 mins read eye

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Goods and Services Tax (GST) has been in the minds of the government for quite some time now and it was implemented on the 1st of July 2017. The implementation of GST is meant to regulate the telecom sector in terms of taxation. The telecom sector has seen several ups and downs in the past decade. For the same reason, TRAI (Telecom Regulatory Authority of India) has played an important role in synchronizing the Indian telecom sector.

GST is a system of taxation that merges up individually applied taxes into single tax. This step has been taken to reform the indirect taxation in India.

There are various aspects of the impact that GST has created on everything. But as India is embracing a single tax code, the effect on the telecom sector is going to be presumably immense as with the coming times there will be more clarity in the scenario of telecom sector.

Current Scenario of Telecom Sector

The telecom sector in India has seen a revolution with the post liberalization economic growth after 1991. And the 1999 telecom policy has consolidated it even more. According to TRAI, in October 2015, we crossed a billion mark for the mobile subscribers and the total number of broadband subscribers in the end of October 2016 were 218.42 million. The arrival of smartphone has just increased the number of users exponentially.

The bigger players in the telecom service providers have shown a much promising picture to the consumers in terms of prices and benefits. The increasing competition has only brought the prices to a much beneficial realm for the consumers.

If we look at the trends in the Indian telecom sector for the year 2017, data realization per MB is going to fall by 20-25% in 2017. The fiberisation of network in India has not yet covered a large area, so it is going to be more prominent in 2017. The LTE and VoLTE enabled phones are going to be a lot cheaper in the coming year.

The growth in the mobile users is going to be 30+% from the existing 370 million users. And this is the reason behind the unexpected upsurge in the mobile advertising. The new GST regime will lead to a highly compliance cost from the telecom companies.

All in all, the number of wireless subscribers has increased, and the statistics show that the number of users accessing the internet on high speed has also increased.

Source – India Brand Equity Foundation

This increasing numbers of wireless users has also ensured that consumers are using internet based communication medium is much larger way.

Impact of GST on Telecom Sector

From the arrival and implementation of GST, the government proposal is to levy 18% tax on the telecom services. The current figure is 15% of tax and so the difference is of 3%. The hike in taxes may have a varied impact on the pricing policies of the telecom companies.

According to the government’s press release, currently, the telecom service providers are neither eligible for credit of VAT paid on goods nor of special additional duty (SAD) that is paid on imported goods and equipment. But under the GST regime, the telecom service providers would avail credit of IGST paid on domestically procured goods as also imported goods.

Is GST Going to Benefit the Telecom Sector?

Telecom sector has millions of subscribers and it is one of the most basic infrastructural services for subscribers. The current ways of indirect taxes have several challenges which is the reason GST has many promising prospects for the future. GST will turn out to be an absolute solution that will become more concrete with the coming times.

In the current situation, the telecom sector is regulated by TRAI and licenses are distributed by the Department of Telecommunication (DoT). Telcos get circle-wise licenses to provide telephony services. Circle wise license distribution doesn’t align with the geographical boundaries of the states. For example, Delhi NCR circle covers Delhi, Ghaziabad, Noida, Faridabad, Noida and Gurgaon telephone exchanges. GST will allow the distribution of license on state wise basis.

The disparity of incurring roaming charges will be different further because of the state wise circle allocation. So, the state wise accounting is going to be applied under the GST regime.

Currently India is divided into 22 telecom service areas or circles for the purpose of licensing. Under the effects of GST, it will be levied in 29 states and 7 union Territories (UTs). The IT and billing systems will require a redesign to ensure GST compliance.

The finance ministry has already asked the phone companies to cut down prices of the telecom services, as the higher tax credits is unlikely to exceed the 1% of revenue, which is way below the 3% hike in the tax rate on telecom services.

GST as a Game Changer

If we look at the concept of GST then the prices are going to reduce with it. The current way of taxation has cascading effect meaning a tax is applied on every stage that propels the product or services further.

Due to such cascading effects, the end consumer has to pay a higher price for the same product. So it is speculation that due to this common tax scheme, the consumer will have to pay much lesser prices.

If we look at another effect of GST, several telecom service providers have come up with mobile wallet services e.g. Airtel Money and Vodafone M-pesa. After the demonetization drive, the mobile wallets have become rife in usage and due to indirect tax implication. But the mobile wallet services have a very clouded opinion regarding the point of taxation. It varies with the service provider.

it is a concrete speculation that under the GST regime, the wallet services would be clearly defined whether it falls in the service ambit or just a plain transaction. This is just one of the several challenges. The telecom sector is ready for such challenges and GST is here for an unprecedented assistance to the establishment.

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5 Benefits of Bulk SMS for Your Business

Acefone Editor

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SMS Service

June 15, 2017

3 mins read eye

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An essential aspect of contacting the customers is that they should hear the message you are trying to convey. There are various outbound solutions available for this purpose, some of which are effective and help in consolidating the customer base.

SMS is one of the best methods used these days to make an outbound access to the customers. The ideas these messages carry is mostly short, succinct and are likely to be read by the customers. Today, when the customers don’t have much time to spare and are reluctant for any marketing activity, bulk SMS service is an assurance that your messages will be conveyed to the customers, effortlessly.

1. Captures Customer’s Attention

Getting customer’s attention is the key to open the possibility for your business or service. Here the necessary aspect that counts to be working for the customers is time spent by the customers in reading an e-mail or SMS. It also includes the effort that is made by the customer while reading the text.

SMS stands more effective than an email because it asks for lesser effort from the customers and when delivered, the message is read even later. So even if it is read with a fleeting sight, it stays there in the customer’s attention.

2. Provides Speed to Your Marketing

The effectiveness of the approach made to customers depends on the intensity with which it has been received. In today’s times when most of the businesses are on the go, you get much lesser time to be in touch with your potential customers.

So, it is necessary whatever you are trying to convey should be short and to the point so that the customer doesn’t have to spend much time on it. And bulk SMS has the capability of mass access. A message can be conveyed to a number of customers without putting much effort.

3. Provides Return on Investment

Bulk SMS is also cost-effective, and you just need to put in minimal investment to get this service, and the returns you yield are very high. Also, the factor that helps in making the idea of bulk SMS work is, you can use it according to the scale of your business.

With such autonomy, you can easily take your business ahead with the help of an effective outbound approach to the customers. The only condition is the bulk SMS service should not be made an involuntary message to the customers.

Recommended Read: Mistakes While Running a Bulk SMS Campaign

4. Targets Specific Customers

With the help of bulk SMS, your campaign can target a particular set of customers. The best practice is to compartmentalise your customers according to their interests and inclinations, and then you can send specific messages to the respective groups.

The bulk SMS helps you connect with a big group of customers with the same interest. Emails fulfil the same purpose, but the effectiveness of the SMSs is far more.

5. Effective Communication

Although bulk SMSs are a unidirectional communication channel, a contact number, a website link can be easily shared through the message. Such information can be used for customer’s further reference. In addition to this, a personalized message can be sent to the respective set of customers according to the details of demographics and their interests.

In general, adding a personalisation factor to the marketing activity involves various touch points, but with the help of bulk SMS, you just need to get the customer contact data and curate a message that carries customer’s interests.

Bulk SMS is the best way to make bulk customer contact in just one go. With such little effort involved, bulk SMSs bring unprecedented benefits to the business.