Automation is one of the tried-and-tested options available to trucking organizations who aspire to increase the efficiency of their operations. Even though traditionally, the human touch is vital in the service industry, automation of specific sectors is highly recommended in the technological and globalized marketplace of the 21st century. Globalization and technological advancements have increased the level of competition to new heights, particularly in the service industry, such as trucking.
Automation of specific departments offers small and medium trucking companies an opportunity to launch a meaningful competition for market-share against global conglomerates. Simply put, automation gives small and medium trucking organizations a fighting chance in the current cut-throat globalized arena. The current technological environment requires trucking companies not just to automate, but to automate using the latest technological marvel, the Blockchain.
Issues in the Back-Office of Trucking Companies
The two main challenges experienced in the back-offices of trucking companies are bookkeeping and accounting. Accounting refers to the systemic and comprehensive recording of financial operations, while bookkeeping is part of the accounting process where financial transactions are recorded. A large number of transactions and operations undertaken by trucking companies implies that hours of precious man-power is dedicated to both accounting and bookkeeping. Financial constraints prompt most trucking companies to commit less than substantial man-power and resources to account and bookkeeping, leading horrendous results since finance is the core of the business venture. Fortunately, automation of back-offices provides an opportunity for trucking companies to fulfill their accounting and bookkeeping needs without incurring the staggering costs.
Application of Blockchain in Back-Office Automation
According to Izabella Kaminska of Financial Times, blockchain technology represents a radical but innovative shift in bookkeeping since the introduction of the double-entry accounting system by Luca Pacioli way back in the 15th century. This assessment is not an overstatement; in fact, it is not enthusiastic enough based on accounting and bookkeeping abilities bestowed by blockchain technology, which is already revolutionizing back-offices globally across numerous sectors. In the trucking industry, automation using blockchain goes beyond the mechanization of bookkeeping and accounting processes to include the interaction between ‘the books’ and real-time operations.
Blockchain can undertake numerous accounting tasks such as sales tracking, invoice generation, budget planning, payrolls, and tax returns simultaneously based on updated data. Automation of bookkeeping using on the blockchain ensures not only the accuracy of the records but also interaction between all financial books based on the fact that the technology is anchored on the communication of ledgers globally.
Tranomics’ Automated Back-Office
Since the establishment of Tranomics, the company has been at the forefront in the adoption of cutting-edge technologies in its operations. Tranomics used blockchain in the automation of its back-office, which had a positive impact on both accounting and bookkeeping. Another back-office task that benefited immensely from Tranomics blockchain-based automation is the department of contracts. Blockchain offered the means for Tranomics to establish a common framework for self-executing smart contracts. The automated contract process ensured that each and every record from contract signing to execution of the contract is accurately recorded and securely stored, which eradicated avoidable contract disputes.