Customer Experience

Why Simplifying Logistics Tech is Need of the Hour

  Apr 22, 2024  

Modern business is deeply connected to a complex mix of systems, and logistics tech is the key to moving goods around quickly and accurately. Logistics tech includes all the digital tools and platforms that help keep the supply chain—the process of getting products from where they’re made to where they’re needed—running smoothly. 

These technologies ensure that items are moved efficiently, reliably, and with full visibility. They cover everything from how goods are transported and warehouses are run to how items are tracked. 

In this digital age, the essence of logistics lies not just in the physical movement of goods but in the speed and efficiency of data. It also increases data transparency for all the vendors and partners involved in logistics and operations. The impact of logistics technology on how supply chains operate today is huge. With the right technology, brands can see big improvements in how they work, like getting products to customers faster, reducing expenses, and making better use of what they have. 

How Technology Plays a Vital Role in Today’s Logistics Needs

The logistics industry is becoming more efficient with technological advancements such as automated warehouses, delivery drones, and blockchain technology for secure transactions. These innovations are changing the face of logistics management by allowing companies to move goods faster while reducing errors in shipping orders. 

Furthermore, innovative features like artificial intelligence (AI) have enabled logistics managers to make smarter inventory and stock management decisions. This means they can predict demand more accurately and ensure that products are available when customers need them.

Automation Technology 

The logistics processes get automated, reducing the need for labour and increasing efficiency. These processes range from managing warehouse operations such as order picking and packing to streamlining data entry and shipment tracking.

Real-Time Tracking 

GPS and other tracking technologies provide real-time visibility into the location and status of shipments. This enables planning, minimizes uncertainty, and enhances customer service by offering accurate delivery estimates.

Inventory Management 

Advanced inventory management systems play a role in maintaining stock levels, predicting demand patterns, and planning for restocking accordingly. This predicts the risks of running out of stock or overstocking which can help reduce losses due to product.

Communication 

Technology facilitates improved communication channels between sellers, suppliers, carriers, and buyers. It fosters collaboration among them for operations. Better communication also reduces the chances of errors like wrong delivery addresses, wrong PIN codes, etc. Moreover, it ensures that buyers are available at the time of delivery.

Strategies To Achieve Tech Advancements in Logistics

Employ Artificial Intelligence (AI) and Machine Learning (ML) 

AI has enabled companies to access all necessary information, including billing details. The system can instantly read and process data efficiently while providing a detailed overview of what you’re looking at—whether it be dates or parties included in your contract. When used effectively, this technology allows businesses to make better decisions, leading them down paths toward higher profitability.

Create a Connected Network 

Logistics companies can use diverse consumer-oriented technologies, such as wireless locales (e.g., Bluetooth, Zigbee, Wi-Fi, Routers), mesh networks, wide-area, and wired connections, to better communicate and connect with customers and partners.

Multi-Channel Management 

Many traditional retailers are adapting to the changing picture of eCommerce by offering more multi-channel touchpoints. This way, customers can easily shop, whether done digitally or in-store. To stay competitive in the ever-changing world of logistics, companies need to be creative and offer solutions that can adapt as needed. 

Indeed, with multichannel, shoppers spend as much as three times more than single-channel shoppers. 

Sustainability in Logistics 

Consumers are more conscious of the environmental impact of their purchases these days than ever before. Most people in this sector have expressed concern about the environmental impact of products they buy. Climate change and corporate responsibility are becoming top priorities for international businesses.

The switch to electric vehicles and alternative biofuels plays a big role in reducing harmful emissions. Businesses can avoid last-mile inefficiencies by choosing the shortest and most efficient route.

Cloud-Based Transportation Management Strategies 

The adoption of cloud-based strategies in transportation management marks a significant evolution in logistics, catering to the need for scalable, flexible, and accessible solutions. Cloud-based solutions transform how logistics companies approach transportation management, providing them with the tools to quickly adapt to changing market dynamics.

Challenges and Risks in Embracing Technological Advancements

Logistics technology can speed up and facilitate growth for businesses wanting to make their supply chain more efficient. But moving to digital isn’t always easy, and many challenges exist. Knowing these challenges is the first step to successfully implementing tech.

Investment Costs and Integration Challenges

  • The financial outlay for cutting-edge systems can be significant.
  • Integrating new technologies with existing systems often requires careful planning and expertise.

Cybersecurity Concerns

  • With digitalization comes the increased responsibility of protecting sensitive data.
  • Cyber threats are a growing concern

Adaptation to New Technologies

  • Training employees to navigate new systems can be resource-intensive.
  • The adaptation involves skill acquisition and often a shift in company culture.

Navigating the Costs and Complexity

  • One of the primary concerns when adopting logistics technology is the cost of implementation. 
  • Advanced systems have a price tag that includes not only the software or hardware but also the cost of integration and ongoing maintenance.

Why is Digital Logistics More Efficient Than Traditional Logistics?

Challenges

In the past, logistics required a complex network of physical infrastructure and processes, and a lot of manwork was required too. From warehouses to vehicles, goods had to be moved physically from one place to another for them to reach their destination. This was often expensive and time-consuming, making it difficult to scale operations quickly or adapt to sudden changes in demand. 

Data Management

Traditional Logistics: In traditional logistics, data was usually maintained on paper or in a limited digitized form. Factory processes such as orders, inventory, transport and delivery were managed manually or with legacy systems.

Digital Logistics: In digital logistics, business processes and data management are automated via digital platforms and software. Orders and inventory data are collected, analyzed and shared in real-time. Also, the information and details are stored digitally. This enables faster and more precise transactions.

Order Management

Traditional Logistics: Orders are usually received by text, telephone, or paper order forms, which can lead to incorrect orders and delays.

Digital Logistics: It offers faster and more accurate order processing thanks to courier aggregators like RapidShyp. All the orders from multiple platforms can be clubbed in one screen through automation. Customers can easily place their orders online and you start working on the delivery as soon as you receive them. 

Inventory Management

Traditional Logistics: Inventory is tracked manually, which can create complexity. As a result, inventory losses may occur frequently.

Digital Logistics: eCommerce operations have features such as real-time inventory tracking and automatic reordering. Suppliers and vendors can even see each other’s stocks, and in case of low stocks, vendors can purchase products with supplier demand.  With tech by your side, you can optimize stock management and reduce inventory losses.

Distribution and Delivery

Traditional Logistics: Distribution and delivery processes take a longer time in traditional logistics. Orders usually take longer time delivered to customers

Digital Logistics: Digital logistics enable automated routing, optimisation and tracking systems for fast and efficient deliveries. Customers can also track their orders and it takes less time for orders to reach customers. Using this technology we can minimize chances of loss and damage of products in transit.

Customer Relations and Feedback

Traditional Logistics: It’s more difficult to get customer feedback and maintain the relationship. Usually, feedback is only received over the phone or paper and not recorded. 

Digital Logistics: eCommerce operations use digital tools and social media to collect customer feedback and manage customer relationships. Recorded customer service lines, WhatsApp lines, and chats are among the most commonly used customer feedback tools.

The Impact of Logistics Tech on Business Operations

Many digital logistics platforms incorporate machine learning and other technical algorithms to help make critical, data-informed decisions and continually drive improvement to your supply chain processes.

Technology has transformed the logistics industry over the years, revolutionizing the way goods are transported, stored, and managed. Automation has streamlined various processes such as sorting, packaging, loading, unloading, stock management, etc.

Companies use advanced analytics and AI-powered algorithms to optimize their delivery routes, reducing mileage and fuel consumption. The company has also implemented IoT devices to track and monitor its fleet, ensuring timely delivery and minimizing disruptions.

For instance, a logistics company manages pipelines, storage facilities, trucks, and distribution centres that handle oil and transport it for customer or business usage. 

Let’s have a look at the logistics tech enablers that have successfully implemented technology for their sellers:

RapidShyp – A pioneer in simplifying tech and making it accessible for businesses of all sizes, regardless of the business size. Prompt delivery services and customer service have been the keys.

Delhivery – A blockchain-based system that enables flexible, reliable and resilient supply chains at economical rates. They have a diverse base of over 30K+ active customers such as eCommerce marketplaces, direct-to-consumer e-tailers and enterprises and SMEs across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing.

DHL – It has used Internet of Things technology to track the location and condition of its packages in real time. Sensors are used by the corporation to monitor temperature, humidity, and other conditions that could affect the quality of its products.

The Bottom Line

Technology has greatly impacted logistics and supply chain management, allowing courier services and businesses to improve efficiency, cut costs, and increase customer satisfaction. Many technologies are driving change in the industry, ranging from automation to artificial intelligence, IoT, and blockchain. Digitalization also brings in data streamlining, optimizing internal and external operations, and ensuring they meet customer and business goals. In addition, digitalization is a helpful tool that gets the best out of the company and assures its lasting success.

Pragya Gupta is a content marketer with over 7 years of experience in writing, content strategy, and PR. At RapidShyp, she’s involved in research, editing, and writing for the blogs, reports, shipping encyclopedia and other brand assets.

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