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The digital revolution has enabled customers to buy the products or goods they prefer delivered at their doorsteps. Today’s customers want it fast and have no clue over what happens behind the scenes to deliver the same on-time. Growing customer demands and expectations always add more pressure on logistics companies as their staffs have to ensure the warehouse and inventory are properly stocked and managed. With fewer tools and technology, their staffs have to strain a lot to live up to the customer expectations. However, it is very possible today with the help of partnering with reputed digital transformation services.

Logistics 4.0 and digitalization impact on Logistics companies

With the internet being the major access portal for customers to consume information, almost every industry is striving hard to embrace cutting-edge digital technologies and solutions. Intelligent and integrated processes using advanced digital disruptions are the new normal and only companies with such an approach are thriving today. 

Logistics 4.0 – simply put, it is the digitalization of logistics processes (using Industry 4.0 solutions) to experience accelerated performance and position their businesses successfully in the market. In brief, it is all about automating the processes within and outside the logistics companies to improve decision making and perform better. 

The ultimate aim of logistics companies switching to digital solutions is to create transparency across the whole processes at the same time optimize their existing processes to improve the overall process and resource efficiency to the optimum level. So, Logistics 4.0 has started to impact the logistics industry hard and companies have no other option than to invest in the technologies to improve their bottom-line. 

3 Areas digitization is transforming logistics companies

Digitalization is impacting the below 3 areas of logistics companies hard, but for a good cause. 

Distribution (warehouse, inventory, assets)

In general, distribution relies on the management of 3 key processes – warehouse, inventory, and distribution. Manually managing these 3 key areas constitute man-made errors, inaccurate data, siloed activities, dismal customer experience. Managing and performing the processes in a uniform manner is recommended and automation is considered to be the best way out to achieve this. 

Let’s dive deep to discuss them in detail. 

Warehouse plays an important role in the supply chain management of logistics companies and automating the process can increase its performance by leaps and bounds. 

Here are some of the challenges and how automation could help in improving the process. 

Ordering goods

Ordering and stocking goods is always a massive challenge for warehouse staff as the process involves a lot of resources and backbreaking work hours. Performing the task manually will eat up most of the time of the warehouse staff leading to poor productivity and efficiency. An automated warehouse management system (a combination of mobile application/QR-code/RFID + RPA) can be a great option to streamline the process and its staff performance. With such a system in place, the overall performance and efficiency of process and resource can be doubled easily. 

Inventory management and goods replacement 

Identifying and replacing goods within a warehouse is even challenging and requires specialized tools to perform this task. By installing an IoT-based sensor to identify products quickly and efficiently, the process can be simplified and improved a lot in no time. IoT in logistics eventually saves the time of your staff to a great extent. 

Labor and asset management 

Last but not least, managing and accounting for your assets and labors is a tricky process and involves strenuous efforts. With manual only systems to track the efficiency and overall performances of your assets and labors could lead to incurred costs. It is always better to opt for a digital system to have complete control over resource management. 

An IoT coupled with a mobile application would be a wonderful option for your resource management activities as the digital solution would provide you with real-time data about the performance and health of the resources accurately from anywhere, any time. With all the data in a centralized web dashboard, you can easily make the desired actions to improve the efficiency and performance of resources which eventually lead to reduced costs. 

Conclusion

So from the above discussion, it is apparent that adding advanced digital transformation technologies and solutions like the Internet of Things, AI, Mobile, Web, and Cloud could potentially transform the way your business functions. Going forward, only companies that invest in digital solutions will stay ahead of the curve – what’s your take? Want to take the lead or just continue with existing legacy systems – the decision is yours.

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