Understand how Digitization is transforming the Logistics Industry to be more efficient, optimized, and ensuring speedy services timely.
Adapting to the changing work environment is a hallmark of great companies, and in today’s rapidly changing world, adaption and innovation have become a necessity.
Among all the industries, the logistics industry is rapidly developing along with the rise in customer demands. Digitization has brought a myriad of change in different kinds of industries around the world, and the global logistics industry is no exception.
If you connect every link of the supply chain digitally, it will enhance the efficiency of a logistics company. Companies with advanced shipment technologies ensure timely pickup and delivery, which, in turn, gain customer trust and thus excel in their field .
Uberization of the global logistics industry is the need of the hour and digitization will help to achieve on-demand mobility solutions.
The logistics and courier businesses are evolving. Thus, it is the right time to understand the benefits of digitization in global logistics.
What is Digitization?
Digitization is competently using technology to create new opportunities that create value for the business. With modern innovative technologies such as IoT and Artificial Intelligence, the global logistics industry can be reformed entirely by digitization for its betterment. The main objective of the logistics industry is to deliver the right product at the right time and right place. With digitization, it can be completely automatized and taken care of.
Digitization will descrease the chances of human error and will increase the synchronization within the team by which the work can be done more prudently.
Application of Digitization in Logistics
With digitization, the era of faster and smarter technologies has just begun, especially in the realm of global logistics. With the advancement of technology, improving the functioning of logistics, digitization has proven its worth as a potent tool in facing the rapidly changing demands of the customers. With the inclusion of digitization, the global logistics industry would witness market growth of more than $16,445 billion by the year 2026.
From self-driving cars to vehicle-to-vehicle algorithms, digitization has brought a new wave of reforms that was duly needed by the global logistics industry. Better communication and better data management have given more control and sustainability to the sector, thus increasing the rate of customer satisfaction.
Critical points for implementing successful digitization in the Global Logistics Industry
Changing trends and customer expectations
Despite all the reforms and changes, the primary thing in the logistics industry remains the on-time delivery of the product. With the inception and now the expansion of online platforms, customers expect to have an immersive digital experience like their real experience at the store. Thus, better product delivery can give you many brownie points, and you will have your name registered in the good books of your targeted customers.
Global market leaders such as Amazon and Wal-Mart are adapting digitization to provide an excellent logistics experience to their customers and to keep their customer retention intact. For example, Amazon provides a two-day product delivery option for over 40 million products for its paid ‘Amazon Prime’ subscribers. On the other hand, Walmart has just joined the two-day delivery bandwagon after overhauling their logistics process with the help of digitization.
With Big Data Analytics, the companies can have detailed information about the customer. It also provides a chance for the user to track their order at every stage of the delivery.
Digitization provides you with a chance to reform your product delivery process and makes you stand out among your peers. The ‘Amazon Effect’ has brought a paradigm shift in the product delivery process of many big companies; moreover, it has enabled them to provide an excellent service due to the ever-evolving demands of the customer.
The positive impact of digitization is that it has brought global market leaders together to provide a collaborative effort to increase the customer experience. Collaboration also includes cost efficiency as the companies can save 15-20% on the outsourcing of each order. An excellent example was that of a collaborative approach when US Foods joined hands with Synco. Both companies started to have a collaborative approach that saved more than $ 600 million.
In addition to the cost savings, the companies can exchange technical expertise and implement techniques such as IoT supply chain management for enhancing customer experience that helps in keeping a fruitful long term relationship with the clients.