Increasing technology innovations are making big waves across the industries, and logistics and the supply chain may be one of the most impacted sectors. Notorious for its heavy use of manual processes and large amounts of data stored in different ways and in different places, the logistics industry has perhaps the most to gain from implementing new technologies and following the most innovative supply chain and technology trends.
Recent years have seen a massive advancement for the logistics industry in areas like artificial and augmented intelligence, advanced analytics and automation, to name but a few. These technologies have evolved faster than ever.
Over the last few years, logistics has gone through a massive transformation due to changes in customer demands and technological innovations. Companies need to deliver their products faster than ever before, at a lower cost, in a sustainable way. Rapid changes, new demands and the growth of e-commerce are forcing shippers and carriers to build better relationships to optimise their operations.
The digitalisation of logistics operations has already started and will continue to reshape entire businesses in the coming years. But the transformation in the logistics industry is happening at a slower rate compared to other industries.
Going digital will have a greater impact on your business and day-to-day routines. You will get a more dynamic supply chain with better control and visibility. Digital logistics enables you to make better and faster decisions in addition to more seamless collaboration with your partners. This is essential if you want to remain competitive.
Supply Chain Visibility
With digitalisation comes supply chain visibility. To meet the demand of your customers you need to know where the goods are at any given time. If you don’t have end-to-end visibility, it is impossible to respond to unexpected events and make the right decisions, as well as making collaboration between partners difficult. In fact, 80% of your supply chain happens outside of your company. How will you be able to ensure quick and efficient delivery with only 20% visibility?
Linking real-time visibility to business processes, decision making, and forecasting, will have a huge impact on the efficiency of your supply chain. Full visibility with real-time updates is the way to maintain a competitive advantage in the future.
Consolidation of Goods
The demand for smaller packages opens the door to an increasing need to consolidate. The more a company consolidates their goods, the cheaper moving those goods becomes. Companies need to pay more attention to consolidation in the future if they want to reduce their costs. This will also have a positive impact on the environment because of better resource utilisation and increased fill rates.
Logistics accounts for 11% of global emissions of which 8% of that is caused by freight traffic. The increasing focus on sustainability is driving organisations to integrate sustainable development goals in their business to lower their carbon footprint.
Organisations across the industry have a responsibility to look into their own operations and evaluate changes that can be done, both on long-haul transport and domestic freight, and open up for further collaboration. Organisations will also achieve a stronger reputation and increased customer loyalty by integrating green logistics.
There is no doubt that in order to meet the challenges of moving goods successfully organisations need to go digital. Digitalisation will continue to shape the future of logistics in the coming years and is a necessary step towards more efficient and sustainable logistics operations, in addition to increased customer satisfaction.