As new market entrants have emerged, consumer expectations have increased substantially around the world. Consumers expect traditional operations to modernize. And so, businesses across all industries have been rigorously undertaking business transformation initiatives including an accelerating wave of digitization.
The transport and logistics industry is no exception. In fact, it has been forced to confront these challenges head-on. Complications arising from the pandemic, labor shortages and a range of other supply chain challenges have all played a part in this. The transport and logistics industry happens to be one of the top growing industries globally, having had to cope with the many challenges of a stressed supply chain.
That said, the worldwide logistics sector is estimated to grow into a $16.5 billion industry by the year 2026. As such, digital transformation initiatives are essential. The pandemic that shook the world has only accelerated the need for digital transformation in businesses. New trends such as automation, streamlined workflows, IoT, and others have come to the forefront.
Why Logistics Companies Need Digital Transformation
It has become crucial to digitally transform businesses and their operations. The many stakeholders of a given business are located worldwide. As such, businesses need enhanced end-to-end visibility and shipping process information to become digital for better access. With the help of real-time freight rates, automation in operations, and paperless bills of lading, things the industry can change for the better.
It is important to note that digitization will both create new opportunities and improve existing operations of logistics companies, offering more transparent and efficient solutions. Digitization can help process, generate inquiries, and even receive quotes faster than ever.
Let’s look at some of the top reasons logistics companies need digital transformation.
Cost and Time Efficiency
Individuals working in this industry need to time every step and process to ensure that the recipient – whether consumer or business – receives deliveries on time. In turn, this avoids the costs and penalties of receiving goods too late. With crunched shipping times, the challenges are constant. Excessive delays can easily result in detention costs or demurrage charges. These are incredibly complex issues that need quick resolutions, allowing for smooth operations. Digitization is a key player in improvements.
End-to-End Visibility & Real-Time Tracking
Realistically, disruptions lurk around the corner in every supply chain. So, there needs to be a contingency in place to deal with issues effectively. Digitization helps by offering a more flexible reaction to such issues through end-to-end visibility and real-time tracking. This can also offer accurate ETAs to customers, so their expectations are addressed and managed . In addition to satisfied customers, there is the immediate practical benefit of not having to deal with multiple enquiries, follow-ups and tracking.
One manages what they measure. Accurate, real-time data derived from digital transformation, can help logistics companies gain deeper insight into their operations. These can, in turn, lead to new ways to improve and extract greater efficiencies.
The need for a digital transformation of businesses is not simply due to changing times or the pandemic. The need for greater efficiencies and sped-up operations have always existed. These factors have merely been accelerated in recent times, and are now becoming integral to businesses on the global scale.
Don’t hesitate to reach out to Connixt today to incorporate digital solutions for greater efficiency of your business.