Finding ways to reduce transportation and operating costs while improving service is an increasingly challenging task. There are many sophisticated logistics solutions available that help achieve this to varying degrees of success—and at varying costs. Among these solutions are routing optimization packages and transportation management systems that utilize equipment ranging from expensive handheld devices to equally costly truck-mounted satellite units.

Implementing a third-party solution in the past has been a time-consuming process that requires extensive capital outlay and integration. However, this is all changing with the introduction of on-demand logistics services. With these subscription-based services, distribution organizations can leverage highly sophisticated, real-time tracking solutions to manage the entire field operations process with minimal risk.

Recent developments in this rapidly growing area include data capture through GPS-enabled cell phones. When combined with on-demand managed logistics services technology, this added capability provides users with highly affordable access to comprehensive, real-time tracking capabilities without having to rely on expensive handheld devices or satellite units to gain visibility into activities on the road.

A relatively new service offering, on-demand logistics services provide an affordable Web-enabled platform on a pay-as-you-go basis. Rather than paying up-front capital costs for the hardware and software required to track vehicles in real-time, capture engine (ECM or telematics) data, or perform dispatch management and customer service, subscribers pay a low fee on a per-use basis. The result is rich logistics functionality that is available on demand anytime, anywhere, by anybody, on any device over the Internet.

This visibility enables managers to optimize field operations, while providing the latitude to pick and choose services on an as-needed basis. In addition, because it is a subscription-based model, services can scale up or down to meet seasonal needs and/or budget demands. Other benefits include low hardware/wireless costs, elimination of maintenance and upgrade fees, real-time workforce management, and ease of use and rapid deployment (solutions can be set up in a matter of weeks).

As mentioned above, GPS has become an integral part of today's on-demand logistics services. Added GPS support enables real-time accurate vehicle tracking via automated arrival and departure information capture, as well as automatic submission of service time calculations.

Having a more complete and consistent picture of global vehicle location, movement, speed and direction can translate into significant bottom line results and improved return on investment. With better visibility on driver movement and status of the fleet, dispatchers, managers and support agents are able to effectively reduce operating costs and improve productivity. GPS-enabled solutions also allow for a real-time audit trail without the need for driver intervention.

The logistics world is evolving rapidly as the demand for real-time capture of information grows and the ability to deliver those services at an affordable cost becomes available. With on- demand services, operations of any size or complexity can quickly and cost-effectively manage their field operations.