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The eFTI regulation will promote digital and green transformation in the transport and logistics sector like no other measure applied so far. However, eFTI targets only carriers leaving other critical parts of the supply chain, such as logistics at manufacturing companies, behind.
Leaving manufacturing logistics behind eFTI environmental goals can become a critical counterweight to eFTI values and goals. What could be done?
Logistics is one of the least digitized sectors. According to the Lithuanian Digital Economy Survey conducted by Infobalt in 2020, only 2% of companies in the transport and logistics sector have digitized their processes. Considering that the transport and logistics sector accounts for 13% of the country's GDP, the overall level of digitalization is disproportionately low.
Yet there is enormous potential for growth and efficiency in this sector. The next big step toward digitization of the sector is the enforcement of eFTI in 2024.
The new regulation aims to create unified and efficient system for exchanging data between authorities and carriers. This should help cut red tape and simplify administrative procedures. eFTI will lead to more efficient use of resources by eliminating paperwork and manual processes.
It is estimated that freight forwarders today compile over 100 sheets of paper documents for one shipment.
The implementation of eFTI focuses on dealing with transporters, the legal framework and technical issues.
However, manufacturing companies and their logistics processes are unfairly forgotten. The same issues that eFTI aims to address exist in manufacturing companies as well.
The sheer volume of paper documents, the manual exchange of information, the large number of people involved in the processes, the high dependency on inefficient processes and waste of resources - this is the reality of manufacturing logistics.
Messy processes are led by dozens of stakeholders: warehouse personnel, security department, distribution, customs brokers, handling terminals, ports. Manual processes still predominate in manufacturing companies, and are likely to increase as eFTI is empowered.
It is likely that the promotion of digitization for carriers will not be as effective as it could be in getting a handle on manufacturing processes. What about eFTI analog for manufacturer?
For more on processes' optimization in manufacturing companies read our blog "How to Streamline the Logistics Chain in a Manufacturing Company?"
As production volumes increase in manufacturing companies, so does the amount of manual work: more employees are hired, more paper is consumed. The way out is digitization and process automation.
ICT solutions for supply chain management provide accurate and measurable data for faster and more efficient decision-making. Both B2B and B2C companies are now looking for means to track their customers' journey remotely and online.
There are a variety of SaaS solutions that solve manual labor problems in manufacturing logistics for a relatively low subscription fee and can be deployed within hours. One of them is GoRamp's Time Slots management system.
Lithuania is proud of SaaS companies that propose holistic solutions for supply chain efficiency and successfully compete in global markets. Lithuania's authority in the field of log-tech technology is growing. There is no need to invest in innovation development. It is already there.
So if the state would support change along with all parts of the supply chain, including logistics in manufacturing, we could achieve much better results for the green goals.
The chain is as strong as its weakest link. We need to digitize not only the processes of carriers, but also the logistics processes of manufacturing companies. We have the opportunity to take the lead in promoting digital transformation and green transit throughout the whole supply chain.
Book a call with us and learn more about GoRamp's Warehouse management solution.