If you keep up with the latest news and trends, you’ll know that digital transformation is now taking over the world day by day. Digital transformation refers to adopting digital technologies to improve the business structure and enhance the products, services, and experiences that are offered. Businesses in almost every industry are integrating and adopting digital technologies such as new or modified processes, new company cultures, and upgraded customer experience to satisfy consumers’ needs and avoid losing their positions in the market. When it comes to the logistics industry, it’s not just about digital tracking and calculation of goods; rather, the technologies that companies are integrating contribute to the automation of the entire physical and invisible functions. So, what are the benefits of digital transformation in logistics, and what are the key technologies of digital transformation that even smaller logistics companies can use to advance further and succeed? Let’s find out!
The Benefits of Digital Transformation in Logistics
As the need for domestic and international trade is growing, the logistics industry is respectively looking for ways to develop and stay on track. The perfect way to do this is through digital transformation. What does that mean? Well, it means that nowadays, there are software and mobile applications on the market that aid in the process of complete automation of the freight business processes and focus on the personal user interface for improved customer experience. These logistics and freight management software solutions offer significant advantages and benefits to companies that use them and contribute massively to their success. So, what are the benefits of digital transformation in the logistics sector?
Increased Speed & Time
Speed and time play such an essential role in the logistics and transportation industries. By using digital transformation initiatives such as automated software that automates time-consuming processes such as manual booking, tracking, data entry, etc., freight companies will stay on track if not ahead of their competitors. They will also be able to increase the shipment delivery speed to the customers, which leads to them becoming leaders in this sector. In addition, digital technologies enable companies to connect devices to send and receive essential data over one network, which accelerates the processes and results in increased speed of reactions.
What does customer experience have to do with digital transformation? Well, freight, transportation, and logistics businesses are constantly looking for ways to improve their customers’ experiences with their companies. It’s the ultimate goal because if customers are satisfied, they’ll buy more, making you a higher sales number. The introduction of logistics software gives freight companies greater control over their businesses and digitizes the supply chain process, leading to higher customer satisfaction levels. Technological and digital transformation allows big and small companies to improve their services’ speed, keep track of the customers’ shipments, access software at any time and from any place to check the cargo’s status, and consequently provide impeccable service!
If your logistics business still operates with outdated business models, processes, and systems, your customers will likely shift to a more advanced option, which is your competitor. For this reason, you should think of ways to continuously progress so as to maintain your competitive advantage and maintain your loyal customers. With technology partners and automated software solutions going through digital transformation, you will be able to discover various benefits and customize plans and strategies based on your business goals, which will, in turn, give you numerous opportunities to benefit from and further advance your business.
Key Technologies for Digital Transformation in Logistics
1- Internet of Things (IoT)
One of the luxuries of the logistics industry is the internet of things. It truly is one of the main tools of digital transformation because it offers various functions to logistics business owners, suppliers, and customers. The main concept of IoT is that it allows sites to be virtually connected through the internet, which results in maximized traceability and transparency of processes such as the departure of cargo from the start until it reaches the final destination.
2- Big Data & Machine Learning
Data, data, data. The need for data in the logistics sector is more important than you can imagine, as the whole operation process depends on the available data. While this data collection was previously done on paper, the digital transformation of logistics businesses now allows for technology to take the place of pen and paper and makes this process easier and faster. This leads to better control, more accurate forecasting, and better management of possible risks.
Blockchain is a technology used for data decentralization whereby information is recorded in a way that is very difficult to change or hack to get access to it. This system can be distributed across the entire network of computer systems, allowing participants along the delivery process to collect valuable data easily. This digital transformation technology plays a big role in improving efficiencies in the supply chain and improving logistics businesses’ performance. The use-cases of blockchain in logistics also can include inventory tracking, better transparency with customers, invoicing, payments, and settling disputes.
4- Cloud Logistics
Cloud-based software solutions such as Logisoft are the big thing at the moment, and they are particularly vital in the digital transformation of logistics. Being able to access the software and keep track of all shipments at any time and from any place will allow freight businesses to operate more smoothly and more efficiently.
Logisoft is a cloud-based solution currently working on integrating all of these key technologies of digital transformation soon. If you have any requirements in mind, let us know how you would like us to implement them to enhance your business processes and help you stay ahead of your competitors! Book a call with one of our experts in the field and discover the benefits that your business needs!