The digital revolution has had major impacts on all industries across all sectors, and the logistics industry is no exception. Prior to the Covid-19 pandemic, the demand for change was gradual but ever-present. In the last few years, the logistics industry has been rocked by disruptions and restrictions, making the demand for immediate and effective change a top priority.
Supply chain resiliency has been making headlines, and companies have been considering whether they need a Supply Chain Management system. Since the logistics industry relies on many different parts and pieces coming together seamlessly to deliver a product, automation is the best way to ensure reliability and supply chain resiliency in today’s market. Keep reading to find out more information on how technology plays a critical role in improving the workflow of the logistics industry.
Shipment tracking has been one of the most crucial developments in the logistics industry in recent times. Real-time tracking is offered by various service providers using Data Analytics, ML, AI, or IoT technologies. Using desiccated customer portals, companies can view updated tracking information that allows them to get the most accurate estimates of delivery dates. This tracking information gives the company greater control of its business flow and allows them to deliver a more positive experience to the end-user.
Delivery Route Optimization
Efficiency in the supply chain is a crucial element of logistics planning, and route optimization is a big part of that. There isn’t always a straightforward solution to determining the most cost-effective delivery route. The most cost-effective route is often not the shortest one between point A and point B.
Route management systems can significantly reduce a shipment’s transit time and cost. Using an advanced algorithm, route management systems can calculate both the most cost-effective and the shortest route between two points. These systems save on shipping costs in addition to the cost of manpower and time overall.
Digitized Offices and Payment Systems
Technology has done a lot to revolutionize traditional business operations, including how people work. Digitization has allowed people to manage documents digitally rather than through a traditional paper filing system. This development is especially advantageous for shipping documents such as Proof of Delivery (POD) and Lorry Receipts (LR). Automating these processes not only increases efficiency but also helps move the logistics industry towards a contactless shipping management process.
In a similar vein of changes, technology has facilitated the use of digital payment systems in lieu of more traditional financial transactions. One of the areas that have been positively impacted the most by this change is the actual logistics of shipping, such as purchasing fuel for carriers. Rather than using cash, as was the standard previously, logistics companies have switched to virtual fuel cards to improve efficiency and transparency. The switch to a cashless system has also allowed for shipping costs to be quickly calculated based on the route, including both fuel and toll charges.
Visibility is a crucial part of logistics, as it makes suppliers aware of what happens to their consignment from the beginning to the very end. In these contexts, consignment refers to products that are sold by a third party but ownership is retained by the supplier. While it may seem like an easy thing to do, following consignment products using traditional business approaches is quite a time-consuming task.
Automation simplifies this process and brings total visibility to the table. Technologies help with the distribution and transportation aspects of this process through the use of GPS tracking systems. This helps both the supplier and the logistics provider track a consignment throughout the process and allows them to make quick decisions on how to resolve issues that arise during transit.
The Bottom Line
Technology has had a massive impact on the logistics industry. Now, more changes are to come as the world recovers from the Covid-19 pandemic’s global disruption of the supply chain. The logistics industry now relies on new technology to enhance every aspect of the supply chain, offering companies a more efficient, cost-effective, and reliable experience across the board.