The Hidden Threat to Profits in the Transportation and Logistics Industry

Overcoming Operational Hurdles in Transportation and Logistics

The transportation and logistics industry has demonstrated remarkable resilience in the face of major disruptions—ranging from global pandemics and the Suez Canal blockage to geopolitical conflicts like the Russia-Ukraine war. However, today’s operational landscape brings forth new complexities that can’t be resolved by simply increasing manpower.

Traditional methods of scaling, such as hiring more staff, have proven unsustainable, especially during peak periods like the holiday season. Logistics companies now contend with surging delivery demands, shifting tariff rules that require updated documentation, and ongoing labor shortages—all while operating on slim profit margins.

One underlying issue often overlooked is the reliance on manual, paper-based processes, which consistently create bottlenecks and slow down operations.

The Documentation Challenge

Managing documents is a core part of both international and domestic shipping. Each shipment involves a variety of paperwork, each with unique formats and regulatory requirements. International freight adds layers of complexity with customs forms, VAT paperwork, and country-specific tax documents. Domestic shipments, meanwhile, require bills of lading, lumper receipts, proof of delivery, and carrier invoices. The requirements can differ by carrier, jurisdiction, and shipment type, making document management a persistent challenge.

Even minor errors—like a missing signature or a mistake in customs paperwork—can delay payments or hold up entire shipments, leading to significant cumulative impacts on efficiency.

Manual Processes: A Persistent Obstacle

Recent findings from Deep Analysis highlight the scale of the problem. A survey of 300 transportation and logistics organizations reveals that the industry remains heavily dependent on manual processes, along with the costs and inefficiencies they bring.

Paper-Based Operations in a Digital Age

Despite widespread efforts to digitize, 32% of logistics companies still rely primarily on paper documents, and only 43% have mostly transitioned to digital formats. Notably, 43% still manage compliance paperwork on paper, and 40% handle domestic shipping documents the same way.

This reliance on manual processes has a measurable impact: 82% of surveyed organizations report that manual document handling significantly hampers their efficiency. Key challenges include:

• 51% experience high error rates during data entry
• 49% struggle with inconsistent document formats
• 49% cite slow, time-consuming processing
• 47% have difficulty tracking document status

Technology Adoption and Its Limitations

Even with the adoption of digital tools like ERP, SCM, TMS, and WMS systems, the effectiveness of these platforms hinges on the quality of input data. When data is manually entered, errors multiply and undermine the value of these investments.

Additional hurdles include frequent scanner malfunctions (reported by 52%) and document compatibility issues (53%), both symptoms of trying to digitize fundamentally manual workflows without rethinking the underlying processes.

The Promise of Artificial Intelligence

There is optimism for change: over 70% of survey participants are open to investing in AI-powered solutions, and those who have already adopted AI report tangible benefits:

• 31% have improved decision-making
• 28% have reduced errors
• 37% have seen better data quality

However, AI adoption is still in its infancy. Only 13% of organizations have fully integrated AI into their daily operations, while 32% are in advanced stages of implementation.

What are the main barriers?

• 54% are concerned about data security, given the sensitive nature of shipment and customer information
• 51% worry about the costs of implementation, especially smaller firms with limited budgets
• 47% face integration challenges with legacy systems not designed for AI

Rethinking Document Automation

To truly move forward, the industry must address the document bottleneck that limits scalability. Hyperscience offers a new approach to document processing, leveraging machine learning as the core and using AI where it delivers the most value, rather than relying solely on large language models that demand extensive data and constant retraining.

This machine learning-first strategy enables:

• Effective handling of diverse document types and formats, learning from each new variation
• Accurate processing without needing perfect digital copies or standardized templates
• Rapid adaptation to new document types with minimal retraining
• High accuracy without months of manual data labeling or complex rule creation

With this approach, companies can automate document-heavy workflows without overhauling their existing technology infrastructure.

Addressing Fears of Job Loss

Concerns about automation leading to job losses were cited by 44% of survey respondents. However, the reality is that automation is typically used to eliminate repetitive tasks, allowing employees to focus on higher-value activities. For example, instead of spending hours on manual data entry, staff can handle exceptions and work directly with customers to resolve complex issues.

As Ivan Ramirez, CTO at Hirschbach, notes: “Hyperscience has empowered us to select the best-in-class solution to support the composable architecture vision we have for our technology stack.”

Leading logistics companies are not seeking to replace their workforce, but to remove the obstacles that prevent employees from performing at their best.

Case Study: Hirschbach’s Transformation

Hirschbach, a prominent truckload carrier, faced the same paperwork and manual entry challenges as many others in the industry. By adopting Hyperscience’s automation platform, they streamlined back-office operations—automating document processing and flagging only true exceptions for human review, which allowed them to scale without increasing headcount.

Is Your Organization Ready to Eliminate Bottlenecks?

The logistics sector has weathered numerous storms in recent years. But future growth will depend on eliminating manual document bottlenecks, not just working harder or hiring more staff for repetitive tasks.

Organizations that embrace automation will gain a competitive edge, freeing up their teams to focus on tasks that require human expertise.

Interested in learning more? Join Hyperscience for an upcoming webinar on AI Readiness in Transportation and Logistics to explore practical strategies for document automation and hear insights from industry research. Discover how top logistics companies are navigating this transition and get your questions answered by experts.

In a field where profit margins are slim and delivery times are critical, every document that moves faster through your system can make a significant difference.