As a small business operating in the logistics and shipping industry, there’s no doubt that automation has created efficiencies in terms of processing times and reduced the amount of manual data input required.
We’ve been able to become a paperless business and have freed up staff to focus on other tasks. However, it must be said, it’s come at a significant expense, and it’s one that is continuing to rise.
There is a myriad of examples of where automation has been introduced across various sectors, and in our industry, it is specifically used to digitally lodge a wide variety of documentation including container details, load and unload data, vessel scheduling and customs and quarantine clearances.
However, each piece of electronic data generally attracts some kind of fee.
Businesses generally have to pay for individual software programs being used, and sometimes pay a per transaction cost on top of that.
At a time when small businesses are continuing to deal with rising interest rates, increased fuel costs and wage pressures among other price hikes, the increasing cost of automation cannot simply be absorbed.
Unfortunately, that means it must be reflected in the fees we charge our clients.
Customers may not realise it, but there are a range of costs related to automation processes including online software licences, booking fees, online lodgement fees, and fees associated with online tracking of shipments.
These costs can, and do, quickly add up, and can be an extra $100-$150 dollars for each invoice generated.
It is essential, however, that companies are effectively communicating with customers so that they understand what the individual fees are, and why they’re an unfortunate, but necessary cost of doing business.
Transparent communication is always the key. In this increasingly digital world, returning to manual processing to save on cost, simply isn’t an option. It means then that businesses can be left feeling as if they’re stuck between a rock and a hard place, as IT providers can essentially charge what they like, and businesses have no other choice but to pay.
In some cases, there may not even be an option to change to alternative software, because systems often ‘talk’ to one another, and changing one might mean disruptions somewhere else down the line.
We also know that for all the efficiencies generated by automation, should the technology crash, or if there is a glitch in the system, there is another cost to bear in terms of disruption and lost business.
And, let’s face it, with growing constraints on time and resources, this is another cost businesses simply cannot afford.
