Several sectors, including transportation, manufacturing, and utilities, have been undergoing rapid digitization in recent years. The global logistics market is expected to reach a value of $15,273.21 billion by 2027. With the change in consumption patterns and the increasing importance of last-mile delivery, the logistics industry is moving towards the path of digital transformation. Digitization is a game-changer for several traditional logistics industries that rely heavily on manual labor and processes. They are now using emerging technologies like IoT, sensors, high-powered data analytics, and robotics for their specialized operations.
Additionally, the pandemic has created exceptional circumstances (social distancing, quarantine, changing customer behavior both with individual consumers and with businesses) that have accelerated digital transformation. Without digitization, traditional logistics companies will fall behind the rising competition from their more technology-enabled peers. To fulfill promises of lower costs and faster delivery, they have to revolutionize their services through digitization.
Here are some of the ways in which digitization is disrupting the traditional logistics sector:
1. Automating Repetitive Tasks
To increase the efficiency of their operators, several logistics services providers are automating all manual and repetitive tasks. They are replacing old systems like spreadsheets and manual processes with tech-forward systems to meet changing customer demands and improve transparency. The pandemic has created a demand for super-fast delivery of essential items (groceries, apparel, electronics, spares).
2. Keeping Customers at the Center
Traditionally, the focus of logistics companies was just delivering the product. Logistic providers are increasingly focusing on a customer-centric approach in their supply chain operations by offering agile solutions to meet ever-increasing expectations. They provide real-time tracking, increased control over their delivery timings, and many new services to improve customer experience. Leveraging different digital tools, logistics companies are providing tailored consumer experiences.
3. Streamlining Supply Chain
The pandemic has made the adoption of technology a necessity to survive and thrive. The rise of virtual commerce has created a need for logistics companies to adopt modern technologies to meet accelerated timelines from order to delivery. These companies employ warehouse management systems that reduce error rates and improve transparency and traceability to optimize their resource usage more efficiently. Thus, they are making their supply chains more efficient and productive. Additionally, they use IoT supply chain management techniques to improve scalability, interoperability, security, and transparency. IoT tools find a variety of applications, such as verifying the temperature conditions of the product, providing real-time visibility of product inventory, and even determining the optimal product configuration. IoT is also used to improve operational efficiency by monitoring vehicle performance, recommending predictive repairs, and enhancing driver safety.
4. Promoting Sustainable Practices
Customers today are showing an increased interest in knowing where their products are coming from, which materials are used, where they were manufactured, and how they were transported. They want to buy products that are sustainable and environmentally friendly. Therefore, modern logistics companies are responding by optimizing their operations by employing various technologies to store and sustainably transport their goods. Many companies are relying on artificial intelligence to optimize their routes and save energy.
Digitization is the way for logistics companies to optimize the workflow of their supply while meeting the needs of their customers. They can embrace digital tools to capitalize on the opportunities presented to them. Employing big data analytics, these companies can know their customers in detail and serve them efficiently. Digitization of last-mile allows these companies to stand out in the face of competition. Many of them follow an “Amazon-like” model where they allow customers to track their products from beginning to end.
By digitizing data and monitoring real-time, Connixt helped LA Metro achieve 20% labor gains and save 400 hours per day. We digitized all compliance and inspection forms and developed them within mobile apps. The app was integrated with other internal processes like fulfilling maintenance work orders, updating material inventory, and employee timesheets. With our help, the LA metro can now monitor its fleet in real-time and sustainably increase efficiency.
If you are interested in digitizing your logistics operations, contact us today to know how we can help you!