The logistics industry is undergoing an incredible revolution, driven by advances and modernisation in IT and digitisation. The logistics sector is regarded as the backbone of a healthy economy, despite this, it is highly unorganised and fragmented with the organised companies accounting for almost 10% of the total economy. With the increased customer base of industries including retail, telecom, transport, manufacturing, pharmaceuticals and many others, the logistics sector has been increasingly drawing investments in the past decade.
The term “Digitalisation” means using the technology to create and explore new opportunities, improving a business structure by moving it to a digital industry.
How digitalisation is applied to logistics?
With Artificial Intelligence, advanced Internet of Things, and important data innovations, logistics sector has almost reformed. But, it’s apparent that the industry still needs digital transformations. With the launch of self driving tech and Vehicle to Vehicle improvements, the logistics sector needs to assess these opportunities and become familiar to them.
Below are listed some examples to see how the digitalisation has helped the logistics companies to develop their services:
- To solve the issue of a shortage of trucks, an automated truck platooning system has been proved a great step. This innovation has enabled the logistics businesses to provide their clients with live tracking, current positions and timely data on truck’s route.
- In the upcoming years, the self driving industry will use advanced Vehicle to Vehicle systems so that the vehicle can communicate with each other with no broker interference. This will enable transporters to connect with the online services or close by organisations, and communicate online to move this data to a controller app.
- The formation of marketplaces for consumer provider organisations both in B2B and B2C fields is another example of logistics digitalisation development.
- With the help of sensors, drivers can have an enhanced, and faster idea of the local reality. It will also help them to respond efficiently with the planning and improved control level. This is possible by making digitalisation an essential part of the logistics solution, and results leading to greater transparency and flexibility in the completion process.
- The new information can be created with the help of an organised integration of earlier fragmented data. This improves front to end risk management, for instance, the prediction of bad weather, strikes, traffic congestion, etc. Additionally, logistics also acts as a data supplier by recording real local data, and considerably enhances delivery reliability. When we are discussing the impact of digitalisation in the logistics industry, we need to recognise what makes up successful digitalisation and what are the important points in creating a lucrative and effective digitalisation strategy?
Digitalisation is now playing an important key role in logistics for businesses that are trying to set themselves apart from their rivals. It not only forms the way for advanced, it’s also customer focused on current solutions but is also helpful for the transparent and reliable execution of these solutions. In future value added networks, the digital processes for the interconnection and association of all parties will become important and ultimately contribute to the achievement and success of logistics activities. When we are discussing the impact of digitalisation in the logistics industry, we need to recognise what makes up successful digitalisation and what are the important points in creating a lucrative and effective digitalisation strategy?
We have explained a few most important factors which will be helpful to do so:
To achieve customer expectations
Logistics has numerous applications, however the most important is the product delivery. With online shopping becoming more in demand, these customers expect that they should have a digital experience similar to a physical one, if not better. The most important competitive factor is the time and speed involved in the product delivery, the faster you deliver the product, the more this will develop and develop your customer base.
Several global examples of the most popular and professional online delivery service providers are Amazon, Waitrose, Apple, etc., that keep up with the ever growing demands of customers.
Therefore, logistics companies need to update their supply chain services and logistics operations to cope up with dynamically changing consumer attitude and to stay ahead in tough competition. The Internet of Things and Artificial Intelligence are the best ways to monitor and track these processes with vast data.
Improving present multi carrier transport solutions
When you are working with different logistics providers to manage parcel shipments, it is difficult to track each parcel without an assistant and here, a multicarrier software comes in place.
- Shippers frequently change the label standards and only advanced and smart machine learning systems can completely keep up with these regularly changing standards.
- Transportation visibility improves as real time tracking is done for all the label products. This data is further can be shared among collaborators, consumers and the company’s employees.
- To ensure that the transporter is not costly, this software controls the compliance to previously consulted rates and procedures expense.
- Such software creates the labels that provide important insights.
- For each shipment, it will provide a unique ID code.
- A delivery message with the shipper’s notes.
- Shipper’s and receipt’s data and both the addresses.
- When one order is delivered in different parcels, it will provide a sequence number identification.
- For all shippers, tracking and managing codes.
- An ID code for each client.
Package and parcel Details
- Stamp for each time when the material of the package is checked and labelled.
- Unique tracking code for each package.
- Optional remarks for each package.
Collaborative logistics means that competitors are teaming up together to improve their services for a common client. They use the same truckloads and create combined return loads, helping each other with data and exchanging innovation.
- The key benefit to consider redefining alliances in logistics is the cost efficiency.
- Collaborative logistics can save a minimum of 15-20% for each order.
- The software supports direct communication with all of the transporters both offline and online.
- Collaborative logistics means that competitors are teaming up together to improve their services for a common client. They use the same truckloads and create combined return loads, helping each other with data and exchanging innovation.
- The key benefit to consider redefining alliances in logistics is the cost efficiency. Collaborative logistics can save a minimum of 15-20% for each order.
Communication with main shippers
- Collaborative logistics help to create long term relationships with customers. In an ever changing business world, creating strong and ongoing relationships with clients is a difficult task for third party logistics service providers. There can be multiple difficulties, delays, the excess or order one logistics company often cannot get through all the problems. In alliance, the workload and pressure are evenly circulated.
- Collaboration allows logistics companies to exchange technological expertise. For smaller logistics companies and retail businesses to maintain innovation, it is important to use other company’s expertise and experience, in exchange for helping them with their business insights.
- Collaborative logistics increases the possibilities of delivery, delay, and this builds the space for smaller logistics companies for expansion in new markets.
About The Author
- Jay Shah is a logistics business analyst by profession and a writer by choice. He is working in this sector for the past 15 years and helping people by providing important insights into the logistics business. He creates blogs in association with IoT experts and highlights the advantages of adopting digitalisation in the logistics business.