Digital transformation is now an indispensable concept for all sectors. The change in payment systems of blockchain technology or the rapid increase in autonomous vehicle models are among the developments that shape the future. Logistics is one of the sectors where digitalization is experienced very quickly. Digital transformation in logistics and transportation helps companies in the industry take advantage of new technologies and become more competitive in an ever-expanding market.
High adoption of digital technologies ensures strong use of supply chains as well as shipping and logistics companies. If you are wondering what the digital transformation in the logistics and transportation sector will bring by 2021, you should definitely read this post.
What is Digital Transformation in Logistics?
Digital transformation is the process of reshaping products, services and all business models by adopting digital and mobile technologies. Digital transformation in logistics is the use of digital and mobile tools in all activities within the sector. Digitalization in logistics generally requires a large investment volume. But all logistics companies can reinvent working models to their capacity and leverage digital tools to deliver value to their customers.
Why is Digital Transformation Important for the Logistics Sector?
Inadequate use of assets in the logistics and transportation sector increases the likelihood of encountering connectivity problems between different devices and systems, as well as a lack of efficiency in the supply chain. Digital transformation initiatives in logistics allow companies to create a solid platform that solves these problems they face. In addition, values such as optimization, speed, efficiency and timing are at the forefront for the logistics sector. Therefore, it can be expected that digital logistics and mobile technology concepts will be included in the sector rapidly in 2021.
What are the Benefits of Digitalization for Logistics Companies?
Digitalization in logistics can benefit companies in the industry in:
- Speed and Time Efficiency
Speed and time are the two most fundamental factors in the logistics industry. Minimum time and high speed provide a competitive advantage for companies in this industry. Companies that use robotic process automation to automate time-consuming processes can have the chance to better compete and rise to a leading position within the industry.
- Connection Between Different Devices
Digital conversion allows very fast connections between devices. With the help of internet of things and mobile technology, companies can send critical information to other devices over a single network. Thus, logistics processes can be managed more effectively.
- Active Use of Artificial Intelligence
Companies can increase their data volumes by digitizing their logistics processes. Using technologies such as data analysis, business intelligence and artificial intelligence provides benefits in many aspects such as supply chain management, cost control, process optimization and customer experience improvement.