6 ways digital contracts work for the logistics industry
When we talk about the logistics industry, it’s easy to start dreaming about speedy delivery vans and the latest technology. But then reality sets in and you quickly realize that there are so many inefficiencies in this industry. But, when it comes to digital contracts, the logistics industry often lags behind others. But digital contracts can have so many benefits for the logistics industry, from cutting costs to providing more real time info, digital contracts work for the logistics industry. In this article, we’ll look at just 6 reasons why.
1. Reduce costs
Many contracts are written on paper, which means you need a lawyer and a specialized office just to store the contracts. Add to this the cost of the paperwork, and you can start to see why the logistics industry can be highly inefficient. In fact, using paper contracts wastes roughly $8billion annually. And this can really add up when you have a lot of customers and a lot of contracts. In fact, digital contracts are cheap and easy to scale. You don’t need to print out any contracts or hire a lawyer to take care of them. All you need is an internet connection.
2. Sign anywhere, anytime
Paper contracts are signed in one place, and then sent to the other party to be signed as well. In other words, you have to be in the same place as the other party to sign the contract. Sometimes, this can take days or even weeks. But with digital contracts, you can sign the contract wherever you want. You can even send a link to the contract so the other party can sign from their phone. This can make contracts much more flexible and make it easier to sign during different times of day.
3. Create digital workflows
There is often a lot of uncertainty in the logistics industry. You need to be able to respond quickly to changes and unexpected events. But it can be difficult to create a system that works well under these conditions. When you have a paper-based system, there are often bottlenecks and roadblocks that slow the process down. Something as simple as a missing signature can bring everything to a grinding halt. But with a digital system, you can create automated workflows that speed everything up. You can also track everything so that you know where things are and where they need to go next.
4. Provide customers with better service
Paper contracts can be easy to lose or misplace. If you’re in the logistics business, it makes sense to have customers sign a paper contract. But this can cause problems if you misplace the contract or lose it. This can mean that you have to start over and create a new contract with the customer. This wastes a lot of time and can lead to delays. Digital contracts can’t be misplaced or lost. They are always archived so you can always find them again. This is great for customers as well as you.
5. Get more real time information
Data is key in the logistics industry. You want to know about every aspect of your business as it happens. But with paper contracts, you have to wait for the customer to send in the signed contract. When you have digital contracts, you can have real time information – in real time. You can track everything from the number of clicks to the number of sign-ups. And the best part is that you don’t have to wait to have the signed contract. Instead, you can track all these details even as you are waiting for the contract to be signed.
6. Reduce legal risks
Paper contracts often have errors. Something as simple as a misplaced decimal point can lead to questions about the contract and even legal issues. Digital contracts are much more secure. You can even write the terms of the contract in plain English. That way, it’s much easier to make sure that there are no errors.
The Key Takeaways
Digital contracts work for the logistics industry for many reasons. They reduce costs, improve service, and make it easier to get real time information. They also make it easier to create digital workflows and provide customers with better service. And with digital contracts, there are also less legal risks. In short, digital contracts can be very beneficial for the logistics industry.