Logistics automation is the use of technology to streamline transportation, warehousing, and supply chain management. It includes systems such as Warehouse Management Systems (WMS), Transportation Management Systems (TMS), and Telematics systems that optimise logistics operations. Integrating these tools into ERP-class systems is vital for effective control.
Objective and Impact of Automation in Logistics
This section investigates how automation can modernise logistics for better operational efficiency and agility. Supply chains need to be automated to meet changing customer needs and adapt quickly to dynamic market conditions. Automation enhances precision and cuts costs, enabling enterprises to remain relevant in their industries.
In addition, it allows firms to respond quickly when markets shift or face unexpected challenges like pandemics that expose weaknesses inherent in traditional supply chains. Robust digital systems ensure decisions are supported by data readily available at any point along a supply chain, fostering preparedness for all eventualities.
The major benefits of employing logistics automation are:
Key Software Solutions: TMS, WMS, and CRM Platforms
Transportation Management Systems (TMS): These systems, including FireTMS from the Eurowag group are used for optimising route planning, tracking shipments, and managing fleets.
Warehouse Management Systems (WMS): Order picking optimisation; Inventory control improvement
Customer Relationship Management (CRM) platforms: Enhancing service quality through better customer data management
Route Planning:
Digital maps help plan routes that consider truck restrictions and toll costs, optimising for both environmental impact and safety. These routes are then sent directly to the driver's cabin telematics computer, which displays the planned course via the navigation system.
Estimated Time of Arrival (ETA):
The ETA for vehicles carrying cargo is critical to modern supply chains. It is established from telematics systems data that provide real-time updates on the vehicle's location and the driver's remaining drive time. FireTMS automatically tells whether deliveries will be on time or not, which allows immediate actions like changing loading/unloading times in case of delay, arranging alternative transport, or planning a trailer swap.
Invoicing and payments: Automation and optimisation are brought into invoicing processes by TMS systems together with subsequent payment monitoring from contractors; transport documents are delivered digitally if needed (e.g. via app or optional scanner in driver's cabin) directly to specific tasks currently being performed by the driver in TMS system; documents between sender-carrier-recipient can be settled shortly after unloading goods thanks to technology.
Cost Evaluation and Analysis with TMS Systems: TMS systems enable detailed analysis of transportation costs to facilitate strategic planning for more efficient resource utilisation and cost-saving measures. Key elements affecting expenditure include fuel, leased vehicles, tolls, driver salaries and vehicle maintenance. For example, operational analyses may show that routes between countries X and Y are not profitable; in such a case, a company might decide to stop running these routes, thereby leading to opportunities for optimisation, such as targeting new customers or focusing on more lucrative markets.
Combining the Internet of Things (IoT) and big data analytics can significantly enhance the capabilities of automated systems. Goods in transit can be monitored precisely using the IoT, which uses particular tracking devices. The information collected from these devices is analysed extensively through big data techniques to enable more informed and forward-looking operational decisions. This combination helps reduce risks and maximise resource utilisation efficiency.
For instance, in most cases, tracking smaller units like pallets within a supply chain may be more effective than monitoring whole trucks. What happens here is that each item passing through specific checkpoints within warehouses is tracked comprehensively, thereby automatically recording their entry and exit points. On top of that, carriers are supposed to have real-time visibility into all vehicles, including trailers, for regulatory compliance reasons and also to improve logistics efficiency.
Automation dramatically reduces manual tasks throughout the logistics industry by streamlining the entire order-to-delivery process. By integrating technologies like telematics with transportation management systems (TMS), logistic operations can move from traditional methods, such as manual tracking on Excel sheets and whiteboards, to a single system accessible by all stakeholders.
This integration supports dynamic planning and real-time route optimisation:
Order and route automation: Orders and their routes are automatically sent from the TMS to the driver via the telematics system. The driver updates the task completion status, which refreshes and closes orders in the TMS. This reduces errors like data entry mistakes and unmarked tasks, improving accuracy and speed.
Order and cargo import: Transport orders can be imported directly into TMS systems from logistics platforms, eliminating the need for manual data entry. This saves time and minimises errors.
Digital driver and vehicle schedules: The TMS system manages driver and vehicle schedules, including planned absences and vehicle services, ensuring everyone has the same information. This allows for easy and flexible work optimisation and better resource use.
Automation plays a critical role in improving the accuracy and reliability of different logistics operations. Automation reduces human errors, making these processes dependable. Besides managing complex warehouse tasks, WMS automatically monitors inventory levels so that there are no errors made during the stock-taking stage.
Moreover, Transportation Management Systems (TMS) oversee transport automation and data digitisation, which reduces manual labour requirements and paper document usage. This makes data processing and analysis easier for forwarders, who no longer have to manually key orders or send them via SMS, and drivers no longer need to manage paper documents collected from the office.
Integrated TMS-telemetry systems help with accurate route planning and ensure drivers' compliance with worktime regulations, thus preventing potential legal issues while enhancing operations.
Logistics operations can scale up or down depending on demand fluctuations without increasing error rates or creating waste. At the same time, automation keeps human resource needs low. Both Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) can efficiently handle cargo volume increases.
Currently, TMS is not only limited to big transportation companies. Small companies with one vehicle can still use cloud-based solutions like FireTMS, whose access is through subscription models, making it affordable for startups. In addition, digital tools and TMS-integrated telematics systems are being adopted right away from the beginning of operations by small carriers, who prioritise modern and efficient process management.
Spending plans can be cut through automation; this is done by lowering labour expenses, reducing errors, and improving inventory management. Here are some areas where savings have been made:
Fleet Management with Routes: Automatic route planning may lessen direct operational costs by avoiding new toll charges. Efficient fleet management also decreases fuel consumption and lowers vehicle maintenance costs.
Efficiency in Labour: Forwarders digitise their activities, which allows them to deal with more vehicles while still giving quality customer service. Otherwise, they would end up with a lean workforce.
Fuel Saving Together with Maintenance: Analyzing refilling plans for each vehicle using TMS systems, which are also good at analysing fuel consumption, can save hundreds of euros monthly.
More Accurate Real-Time Tracking: Companies enhance customer care services through real-time transport monitoring and ETA support, which helps them avoid penalties for late deliveries or delays and thus increases overall operational reliability.
Drivers’ Standard Operations: Customer complaints might arise due to variations in drivers’ behaviour and the paths they follow, but telematics systems, through tablets, cater for all these. These systems guide standardised routes and check whether documents are complete or whether the cargo carried has any damage; this reduces potential contract losses.
Safety standards have always been a major concern when it comes to warehousing and transportation. Cargo theft can be prevented while workplace accidents are reduced if certain safety features are considered during the implementation stage. Below are some examples of such measures currently used:
VIES Database Validation: Fraud cases involving carriers or contractors can lead to the loss of transported goods. To prevent this, TMS systems automatically verify contractors in the VIES database to confirm they are legally registered companies, reducing the risk of fraud and cargo theft.
Geofencing Technology: Drivers receive alerts on their onboard tablets when they enter high-risk areas, such as parking lots known for cargo or fuel theft. This real-time warning system enhances security.
Integrated Route Management: TMS is integrated into telematics, and drivers are expected to follow predefined routes, which reduces the chances of accidents. An additional safety layer is created by generating alerts any time a driver deviates from the set path.
Training Programs for Drivers: More often than not, goods are damaged due to sudden stops made by drivers or even collisions. Thus, there should be training on economical and defensive driving to minimise such incidences, safeguarding goods further while reducing accident rates.
Companies are encouraged to upgrade existing systems and adopt new technologies, but this can be done without substantial initial outlays. Costs tend to correlate with the scope of the investment—such as implementing Transportation Management Systems (TMS) for office staff or integrating telematics devices into trucks. To manage these expenses effectively, it is advantageous to partner with a comprehensive provider like, who can consolidate services under one roof, ensuring streamlined processes and cost-efficiency.
To maintain operational flexibility without immobilising capital, companies should consider various financing options similar to vehicle financing, such as subscriptions, leasing, or rentals. These options allow businesses to adapt their operations without significant upfront investments.
Performing an internal needs assessment is crucial. It helps businesses select the most suitable technologies that meet current needs and provide the scalability necessary to support future growth. This strategic approach ensures that investments in technology are both effective and sustainable.
It is advisable to appoint a project leader to oversee the implementation of TMS or telematics solutions. This manager should handle the training schedule so that future stages and modules are considered for a smooth shift. Selecting a trustworthy provider can mitigate risks since they ensure seamless integration with current systems.
Installing new devices across large fleets poses a substantial logistical challenge. Arranging vehicle schedules so that installations can be completed within a few weeks requires careful planning to avoid interfering with work and route efficiency. Technological upgrades must enhance operational capabilities without compromising daily logistics through proper coordination.
Integrating New and Existing Systems
The complexity of introducing new systems into existing infrastructure calls for continuous maintenance. The difficulties commonly arise from technical issues like system updates among vendors' systems provided by vendors such as, which are required to ensure compatibility.
Vehicle Fleet Coordination
One major challenge in large fleets when integrating new technology is organising vehicle schedules to avoid operational conflicts. Installing new devices may take several weeks, but this should be avoided conflict-free and ensure all trips remain efficient.
Legal and Ethical Considerations
The replacement of human labour with machines brings about significant legal and ethical challenges, particularly regarding data privacy and employment effects. Companies need to address these matters responsibly so that automation benefits workers either by making their jobs easier or improving working conditions.
Employee Perspectives and Communication
Telematics devices have been known to make employees, such as drivers, feel over-monitored, hence raising concerns regarding this issue. However, many find these systems improve their work environment by reducing paper load and increasing digital efficiency. It’s crucial that during the initial implementation stages of any new technology, good communication about the objectives and advantages should be maintained. Employees should be well-informed while anticipating and proactively addressing any concerns.
Logistics automation has numerous benefits, including improved efficiency, accuracy, scalability, and cost-effectiveness. Organisations that adopt modern technology have the upper hand in this fast-changing market.
Eurowag urges transportation companies to embrace automation technologies to optimise their operations strategically. By partnering with Eurowag, such companies can benefit from innovative solutions that widen their capabilities and streamline processes. Digital transformation strategies lead businesses toward vibrant growth and industry leadership.
