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Digital Transformation in Logistics and Supply Chain Services

Upcoming developments will only lead to further transformation of the industry


Aastha Khanna

Digitization is disrupting the way businesses manage and streamline their operations. A variety of technologies have already made their mark on the logistics and supply chain landscape. Upcoming developments in 5G technology, artificial intelligence, blockchain, and cloud computing will only lead to further transformation of the industry. With these breakthroughs, traditional supply chain methods will no longer suffice. To remain competitive in this dynamic environment, companies need to embrace the digital transformation of their supply chain and business operations.  

The risks associated with the ever-changing customer demands is enormous for old-fashioned supply chain systems. In many ways, the success of SMEs depends on successfully managing these processes.  

Medium-sized companies cannot afford inefficiency or missed commercial opportunities. Most of the time, these shortcomings stem from poorly managed supply chains. Fortunately, companies can dramatically enhance the efficiency and transparency through digitization of logistics and supply chain management. 

Streamline your communication  

Digitization provides tools to improve the entire cycle of business operations through streamlined communication and collaboration. Processes that were once hindered by the limitations of analog supply chain systems are being quickly modernized. Taking advantage of these tools can help your company get products quickly to the market. The benefits of using digitization to enhance transparency in the supply chain include: 

·        Uncovering and removing inefficiencies, resulting in reduced expenses 

·        Improving analytics to monitor trends and changes in customer demands 

·        Creating greater agility to meet those dynamic consumer demands 

·        Streamlining processes to reduce confusion and facilitate cooperation across departments and partner companies 
Adopt real-time data-driven decision-making processes 

Companies need to adopt real-time data-driven decision-making processes to accurately assess the market situation and prevent disruptions. This is how digitization can provide a competitive advantage. Logistics can be automated at several levels: sourcing, production, warehousing, transport point-of-sale, and consumer.  

For a medium-sized company, there are three main areas worth investing in digital innovations: 

·        Adopt robust logistics software to boost profits and accelerate product cycles for a competitive advantage.

·        Use supply chain management software to streamline business operations and make everything efficient and effective.  

·        Implement clear lane freight tracking to help manage shipments easily. 

Need for agility 

To stay on top-of-the-game in this digital economy, innovation and agility are key. So, you need to streamline your communication, adopt real-time data-driven decision-making processes, and focus on agility and innovation to get things running smoothly.  

 According to a recent survey conducted by Forbes Insights, 65% of logistics, supply chain and transportation executives acknowledge the necessity to revamp existing models and add flexibility to business operations in order to ensure omnichannel delivery, reduce costs and meet the ever-shifting consumer demand. Effectively managing a collaborative and innovative supply chain by using SCM software and product and portfolio solutions lets firms produce and deliver products faster.  

In fact, 72% of enterprises involved in planning, executing and monitoring the flow of products from the point of origin to the point of consumption consider improved customer experience as the key benefit of business transformation. 

No wonder the path to increased operational efficiency and customer satisfaction lies in the digitization of logistics workflows.

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