Digitalization of logistic industry

The global logistics industry has grown tremendously over the years and there have been significant improvements in logistics infrastructure worldwide as we are seeing new global pressures, opportunities in e-commerce markets, and alliances combining around new technologies. From the first assembly lines to today’s advanced robotic solutions, the supply chain process is constantly evolving because increasing technological innovations are making big waves across industries, and logistics and the supply chain may be one of the most impacted sectors. Factors such as rising disposable incomes, dual-income households, and constant urbanization have encouraged emerging economies to follow upcoming logistics trends, thanks to digitization and ground-breaking solutions in supply chain and logistics. Companies implementing well-designed supply chain practices are able to meet consumer needs in a more expeditious and timely manner since the logistics industry has perhaps the most to gain from implementing new technologies. The rapid development of retail channels requiring efficient inventory management and warehousing solutions for helping the customers has pushed the industry to quickly implement new technologies to leverage its services.

Technological advancements have strengthened the capabilities and functioning of every element of logistics while this strengthens customer relationships and loyalty, translating into revenue boost and acquisition of new customers through positive word of mouth. The logistics sector is undergoing an important transformation as new technological solutions come into everyday use, driven by market trends like artificial and augmented intelligence, advanced analytics, and automation, etc. Various companies have started engaging with logistics service providers for catering to the customized demands of the consumers right from packaging and labeling to shipment, transportation, and last-mile delivery.

The technologies have evolved faster than ever while start-ups with even newer solutions and innovations continue popping up at a rapid rate resulting in the global logistics market registering a CAGR of over 7% by the end of 2022. But attached to these innovations are new expectations and standards, forcing logistics companies to either adapt or fall behind since market intelligence about the global logistics market size, top logistics companies, and major logistics trends shaping the market. Changes in consumer demands, the rise of e-commerce and fierce market competition have also enabled a rapid transformation of the industry. Using digitization, the logistics sector can adjust better to the fast-paced, highly competitive, omnichannel business environment as we are witnessing political, economic, social, technological, environmental and legal changes influencing this segment of the economy.

With digitalization shaping almost all the industries across the globe, the logistics industry is no exception as much pressure comes from customers in the form of individuals and enterprises, all of who are demanding their products or services come faster and cheaper than ever before. Today digitalization is no longer about simple Information & Communication Technologies or ERP in the workplaces, but about devising completely new business processes and models and hence, the era of smarter and faster logistics has just begun. Digitization improves the speed, dynamics, and resiliency of the supply chain operations, leading to greater customer responsiveness and ultimately higher revenue whereas, rising digital literacy and consumer awareness about the usage of different online platforms for making customized purchasing decisions.

Digitalization is all about leveraging the possibility of moving the point of purchase as well as important elements related to service provision into the digital environment and the digitalization of the logistics industry has emerged as the key trend gaining utmost traction. Digitalization is expected to reshape the way consumers interact with business and will reduce time in procurement and supply chain costs.


1 Comments

  • The digitalization of logistics is really a great idea! There are a lot of advantages in doing so. A customer can keep track of his goods also it becomes easier to establish communication between the client and the logistics firm. The most important advantage of all this is that digitization can really help in giving a competitive edge to the company. It can also help in attracting new customers. Thank you.

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