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  March 30th, 2021 | Written by

The Arrival of Digital Logistics

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  • The environment of business is becoming fundamentally altered by globalization.
  • Logistics companies cannot afford to sit back and watch, they have to be proactive to new technology innovation.
  • A new approach in collaboration among partners is essential.

Consumers turned digital before manufacturers and distributors, including those in the logistics industry. It may be hard for companies to keep up with the constant changes and technological advancements. Cloud technology is a solution for companies to stay up to date, helping the traditional logistics industry to become a “virtual logistics industry.”

New technology changes many aspects of how a logistics business operates, brings new market entrances, brings in new customers, and manages new partner expectations, which consequently triggers new business models. Traditional methods of running logistics need to be revamped to become digitized and more transparent among partners. Operations need to be adjusted where documents accompany one shipment and if one document is missing, a shipment can be delayed sitting idle for days.

The logistics market, with an estimate approaching US$ 6.6 trillion dollars, is at stake. Logistics companies cannot afford to sit back and watch, they have to be proactive to new technology innovation. New technology will target digitization and most of logistics functions and its administration, such as automated scheduling, consolidation of pick up and deliveries from multiple shippers, auto instruction to the right warehouse operator to pick up certain items, automate marketing functions to look for cargo on return trips, deliver auto work order to driver, auto-generated issue invoice to customers, and more. With the help of technology in logistics services, a new approach in collaboration among partners is essential as it will provide capacity fulfillment to reduce much-needed operation costs.

 An adaptation of real-time digitization and data automation under one platform will give access for independent companies to participate in a technological economic era. It is estimated 535,000 distribution centers scattered in the US operate as standalone independent companies. Now, imagine if 5-7 percent of them are willing to collaborate with sales and customer services references under one logistics platform. Each company and its customers will gain efficiency, productivity, and faster workflows.

The environment of traditional logistics businesses that once took days to finalize is now being reduced by the real-time technology digitization revolution with simple real-time clicks. Technology provides an opportunity for many people in isolated areas to participate in new economic and technological ways of living.

The environment of business is becoming fundamentally altered by globalization, and followed by recent pandemic that have devasted most traditional business prospects. Our strategic decision to stay competitive and to operate much more efficiently has to be based on these contexts. Logistics companies face a lack of coordination and collaboration between or among effective partners for some time, resulting in a decrease in overall efficiency and a higher operating cost on different systems. An improvement of sharing real-time information in cloud platform among active logistics partners is one of the key elements in improving collaboration and cooperation, including an increase in the bottom line.