Digital Transformation Opportunities in the Logistics Industry
Logistics and supply chain are the backbones of the worlds economy. Disruption in logistics (both positive and negative) will reflect immediately on the flourishing global economy. The disturbance caused in the global supply chain due to the pandemic is now recovering. All logistics businesses are preparing to bounce back. But, this time more aggressively than before.
If you are into the logistic business then this is the high time to consider upgrading the systems and processes for your entire organisation. While all the logistic businesses will fight to win more and more market shares, the businesses that have adapted to the modern technology in contemplation of matching the pace of growth will come out as a winner.
MSBC Group has experience of almost two decades in digitising logistics businesses. While crafting customised logistics software solutions for our clients across the globe, we have developed an in-depth understanding of the industry and the importance of digital transformation for the same.
In this article, we have attempted to summarise all the insights about the opportunities & importance of digital transformation for logistic businesses and bring them across you in a simple manner for your understanding.
Three Pillars of Logistics & Supply Chain.
For any logistic business, it is important to work on three areas which are
- Speed
- Safety
- Effectiveness
Speed resembles faster deliveries and motion for all the shipments and cargos. Safety ensures a precautious environment for the workforce and cares for the transport items. Effectiveness will make the operations cost lower, driving the profit margins higher.
Improving these three core pillars of any logistics business can warrant an upper edge over its competition. Let’s take a deep dive into how digital transformation for logistics can help improve these core pillars.
Improving speed through digital transformation
Improving speed for a supply chain never means installing high HP engines on the transport vehicles. But improving speed means shortening the intervals between two connecting points & optimising for lack of efficiencies by shortening the waiting time.
For starters, with digital transformation, one can integrate warehouse robots for faster loading and unloading of goods. These robots can be connected to a holistic system where they get signals about the delivery vehicle approaching the warehouse and their estimated time of arrival. This way waiting time for loading and unloading goods can be minimised by improving the speed of the complete system.
Enabling safety with digital transformation
A safe environment is a must for all the workforces operating day and night to run your organisation. Digital transformation can help you enable a safe environment with modern devices and software. Shipping vehicles can also be guarded with advanced technologies like assisted driving and telematics devices.
Centralised warning and notification systems can deliver an instant notification on the phones of all the workers operating at any corner of the organisation in case of any hazardous situation. Thus, giving better connectivity and making the place safer to work.
Increasing effectiveness with digital transformation
In addition to the speed, the effectiveness & efficiency of all the processes in the systems is very important. For example, along with decreasing waiting time at the warehouse for delivery vehicles, it is important to properly manage the storage of all the warehouses to ensure proper utilisation of storage space. This can be easily automated by implementing a centralised software solution for logistics which contains a warehouse management module. It will synchronise all the warehouse storage options and provide you with the best storage management options after accounting for all the necessary factors.
AI enables smart routing algorithms which can predict the best route for deliveries and shipments considering all the factors like traffic, weather, multiple drop-offs and pick-up locations, and more. Thus, increasing the effectiveness and efficiency of all the resources. This way the revenues and profits can shoot up without spending on more resources.
If you are looking for a perfect partner to implement a customised software solution for your logistics business, make sure you get in touch with us.