Joanna James
Prioritising efficiency and speed is a key factor that enables the success of any industry. When it comes to logistics, digitalisation has made significant progress in revolutionising operations. This article explores five key benefits of digitalisation in the logistics industry, so do keep reading.
Digitalisation enables every single logistical element to operate seamlessly, just like a well-oiled machine. With constantly new and advanced software solutions, logistics companies can turn to automated routine tasks, reducing manual errors, and streamlining processes.
Warehouse Management Systems (WMS) use digital tools to optimise inventory control, thus ensuring that stock levels are maintained accurately and efficiently. This automated sorting and packing system reduces the time taken to process orders, allowing for faster dispatch and delivery. This key aspect increases productivity and significantly reduces operational costs.
Digitalisation has enabled thorough transparency in the logistics industry, with real-time tracking systems – a massive improvement from the inconvenience of having to track a shipment with no real-time data back in the day. With real-time tracking, businesses and customers can monitor their shipments by receiving precise locations at any time.
This is enabled by technologies such as GPS (Global Positioning System) and IoT (Internet of Things) devices, which provide real-time data on the movement of goods. An example would be temperature-sensitive shipments, which can be easily monitored to ensure that they remain within safe parameters. This efficiency and transparency build trust with customers, as they are able to keep track of their deliveries with ease.
Customer expectations are higher than ever in the fast-paced world today. Customers demand quick, efficient, reliable, and transparent service, and this is where digitalisation enters the picture. It provides logistics companies with the necessary tools required to meet and exceed these customer expectations. Via advanced Customer Relationship Management (CRM) systems, companies can offer personalised services and necessary support for customers.
For example, automatic notifications keep customers updated on the status of their shipment, while digital platforms enable easy tracking of orders, scheduling deliveries, and providing feedback where necessary. Further, most business websites provide chatbots and AI-driven customer service systems, which can offer customers immediate assistance to resolve issues and answer queries as fast as possible. All of these factors ensure that customers have a smooth and satisfying customer experience.
Through data analytics, the logistics industry is able to make better decisions. How? Digitalisation enables the collection and analysis of large amounts of data, and this provides companies with insight into every aspect of the supply chain.
Through advanced data analytics tools, data can be used to identify patterns, trends, and inefficiencies which can prove to be immensely useful to logistics companies. For example, predictive analytics can forecast demand, allowing companies to take control of their inventory levels and avoid overstocking. In a similar manner, route optimisation algorithms can be used to analyse traffic patterns and suggest quick and efficient delivery routes, which saves time and avoids excessive fuel consumption.
The likes of McLarens Sri Lanka are diversified conglomerates in Sri Lanka, with a presence in the logistics industry. They are renowned for providing bespoke digital solutions for logistics to their clients across numerous industries.
There are two critical concerns when it comes to the logistics industry, and they are security and risk management. Utilising digitalisation in this industry ensures that proper solutions can mitigate these issues. An example would be blockchain technology, which makes sure that the integrity and transparency of transactions are maintained, removing the risk of fraud and tampering.
Additionally, IoT devices and sensors can be used to monitor the state of goods when they’re in transit, allowing real-time alerts in case there are deviations from the set parameters. For example, if a particular shipment (such as food or garments) has been exposed to excessive heat or humidity, a device utilising IoT can trigger an alert, thus allowing immediate action to be taken. These technologies protect goods in transit, but also minimise potential losses and liabilities and improve overall security of the supply chain.
A true believer that the pen is a mighty weapon, ventures into reaching the minds of every reader with the earnest hope of leaving an indelible stream of thought.
A travel writer who has a passion for fashion and a deep interest in admiring new and exotic attractions around the world.
