Digital Indent Allocation in Logistics- Importance & Functionality

Indent Allocation in Logistics

Dive into the dynamic world of ‘Indent Allocation in Logistics,’ a crucial component in Supply Chain Management. It’s all about thoughtful planning and using the latest technology. But what is indent allocation in logistics and supply chain management, and why is it so important? 


To put it simply, indent allocation in logistics and supply chain management is a software solution through which the logistics team initiates a request to allocate a vehicle for cargo. This is done in coordination with a contracted transporter, following the terms of a pre-defined freight contract.


This blog post explains how digital indent allocation helps improve supply chains and why it’s so crucial in today’s logistics industry.


What is Digital Indent Allocation in Logistics and Supply Chain Management?


Indent allocation in logistics and supply chain management refers to coordinating vehicle allocation for shipments. Essentially, it’s when the logistics team makes a request, or ‘indent,’ to a contracted transporter for vehicle placement. This is done following existing freight contracts.


This system exists to guarantee the timely placement of vehicles for every shipment. The aim is to prevent any delays in the supply chain that could occur due to vehicle unavailability or indent cancellations.


Why is Digital Indent Allocation Gaining Popularity?


Indent allocation plays a crucial role in logistics, driven by numerous business objectives:


Ensuring timely vehicle availability


Businesses need a system to predict when a vehicle will be required and ensure it’s available at the right time. The ability to coordinate this effectively can lead to significant improvements in efficiency and cost-effectiveness.

Vehicle assignments based on real-time demand


Sometimes, the need for a vehicle might arise suddenly or unexpectedly. A system can respond to real-time changes and quickly assign vehicles in these instances.

Instantaneous collaboration and updates


Logistics involves coordinating many different elements. A digital indent allocation system allows for real-time updates and collaboration between all parts of the supply chain, enabling more effective decision-making and quicker responses to any changes.


With these demands, it becomes clear why a system that can simplify and streamline the indent allocation process is necessary. This is where digital indent allocation comes into the picture.

Benefits of digital indent allocation:

Centralized record of all transportation vendors


A digital system lets businesses keep all details about transportation vendors in one dashboard. This makes it hassle-free to manage vendor relationships and keep track of performance.

Transparent operations through digital freight contract management


A digital system ensures more transparency in freight contract management. All contracts can be stored and managed digitally, making it easier to compare rates, monitor performance, and ensure all terms are met.

Quicker and more accurate vehicle placement


Digital systems can automate many parts of the indent allocation process. This can lead to faster vehicle placement, reducing the likelihood of delays and improving overall efficiency.

Real-time Tracking and Analytics


Digital indent allocation systems have live tracking capabilities, offering complete visibility into vehicle placement. 


Moreover, these platforms deliver analytics, allowing insights into performance and helping determine areas for improvement.

Improved Vehicle Utilization


Digital systems enable you to optimize vehicle utilization by providing on-time vehicle placement for every shipment, minimizing vehicle idle time.

Better Collaboration with Transporters


The systems authorize real-time collaboration with transporters. The digital platform can host freight contracts, making it more effortless for both parties to adhere to terms.

Transparency in Indent Cancellations


Digital platforms deliver real-time updates on indent cancellations, reducing supply chain disruptions.


Also read: How Technology Advancements Can Help Reduce Freight Cost


How does Digital Indent Allocation work in Logistics?


The Indent Allocation System follows a structured approach to effectively manage vehicle placement for shipments. Let’s break down how it typically works:

Indent Creation: 


When a shipment is ready, the logistics team creates an indent (a formal request) for a vehicle from a contracted transporter. This indent includes necessary details such as the type of vehicle required, the pickup and drop-off locations, and the scheduled time for vehicle placement.

Transporter Confirmation: 


Upon receiving the indent, the transporter checks the availability of vehicles that match the request’s specifications. Once a suitable vehicle is identified, the transporter confirms the indent and schedules the vehicle for pickup.

Vehicle Placement: 


The transporter ensures that the confirmed vehicle arrives at the pickup location on the scheduled date and time. The shipment is then loaded onto the vehicle for delivery.

Real-time Updates and Tracking: 


Throughout this process, updates are sent to the logistics team. This includes the status of the indent request, confirmation from the transporter, and the current location of the vehicle.

Indent Closure: 


Once the shipment is successfully delivered at the drop-off location, the indent is closed. The transporter submits a proof of delivery, which is verified by the logistics team. After verification, the indent is officially closed in the system.


Digital Vs Traditional Indent Allocation 

Here’s a comparison table that contrasts Digital Indent Allocation vs Traditional Indent Allocation:



Digital Indent Allocation

Traditional Indent Allocation 

Indent Creation

Automated, based on shipment schedules.

Manual, requiring human intervention.

Communication with Transporters

Real-time updates, seamless collaboration.

Mostly offline, may be slower and less coordinated.

Vehicle Placement

Optimized based on real-time data.

Depends on manual planning and coordination.

Tracking and Updates

Live tracking of indents, real-time status updates.

Limited visibility, updates may be delayed.

Indent Cancellations

Handled efficiently, minimal disruption.

May cause significant delays and disruptions.


Easily scalable with growing operations.

Scaling may require significant resource investment.

Cost Efficiency

Lower operational costs due to automation.

Higher operational costs due to manual processes.

Data Analysis and Forecasting

Advanced analytics for insights and forecasting.

Limited data analysis capabilities, mostly reactive.


Also read: Proof of Delivery: A Quick Guide to POD (2023)


Supply chains and their need for agility


Successful Indent allocation is an important milestone of logistics operations for all businesses – small to large. Logistics team members target to ensure on-time vehicle placements for every shipment.


Digitalization of indent allocation activities help you reduce vehicle allotment time, order dispatch time, follow up calls. Thereby it reduces operational costs and increases employee efficiency. To learn more on how to integrate TMS solution to leverage indent allocation software in logistics and supply chain management, contact team Fretron.


Frequently Asked Questions [FAQs]

What are the benefits of Digital Indent Allocation in Logistics?


Digital indent allocation enhances efficiency, reduces costs, delivers real-time tracking and updates, and improves communication with transporters.

How to implement Digital Indent Allocation in my logistics operations? 


One can implement Digital indent allocation using cloud-based SaaS Transportation Management Systems (TMS), which automate and facilitate the indent allocation process.

How does Digital Indent Allocation contribute to Supply Chain Efficiency? 


Digital indent allocation reduces manual intervention, speeds up vehicle placement, delivers real-time updates, and thus, contributes greatly to overall supply chain efficiency.

What are the challenges in implementing Digital Indent Allocation in Logistics? 


Challenges can include:


  • Resistance to change.

  • Integration with existing systems.

  • Data security concerns.

  • The need for training staff to use the new system.

What features should be considered in Indent Allocation software? 


Key features include:


  • Automated indent creation.

  • Real-time tracking.

  • Advanced analytics.

  • Scalability.

  • Robust security measures.

  • Seamless integration with existing systems.

How does Digital Indent Allocation in Logistics affect customer service?


Digital Indent Allocation can improve customer service by ensuring on-time vehicle placements, providing real-time updates, and swiftly handling indent cancellations. This leads to reliable and timely deliveries, enhancing overall customer satisfaction.

How is Digital Logistics different from traditional logistics? 

Digital logistics employs modern technology for automation, real-time data analysis, and more satisfactory visibility across the supply chain, while traditional logistics primarily rely on manual processes.

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