How can Logistics Industry Benefit from Digitization
Global trade environment is volatile, and organizations need to keep innovating new ideas to provide efficient services to their customers. The recent technological revolution is taking over the traditional logistics industry. Many companies have started leveraging technology tools to provide an innovative supply chain solution.
According to World Economic Forum, one-fifth of logistics expenses are tied up in the cost of processing paperwork. The next generation of logistics industry promises to eliminate the administrative paperwork to boost the trade. Eliminating paperwork will help to cut costs, quickly identify the bottlenecks, automate deliveries, and increase transparency. Many companies are providing AI-based platforms with digital ledgers to streamline the entire logistics process. For example, 1Shift platform provides end-to-end transparency and real-time tracking through the entire supply chain cycle with the help of these technologies.
The trucking industry is highly fragmented and requires a digital makeover. In North America, over 500,000 trucking companies operate, and 40 percent of them sit idle at any given time. Twenty-five percent of all the miles driven are with empty drivers. Bills of the itinerary are handled manually, which results in routine mistakes, delays and slow processing times, and higher costs. Companies are exploring the idea of on-demand trucking app to trim the efficiencies of the trucking industry. These apps will enable the trucks to operate the cargo in the fastest and the most efficient manner.
The most significant advantage of AI-powered digital platforms is their ability to drive cost efficiencies and faster delivery times. It can optimize loads, authenticate documents, and offer real-time traffic information to ensure that the truckers choose the most efficient routes. The digital platforms eliminate the human error during goods transfer as all the processing is carried through digital bills and analyzed through AI and biometrics.
Drones are another way to speed-up deliveries. It can immensely help to overcome current bottlenecks in the system. After JD.com became the first company to make commercial delivery using fixed wings drones, many online retailers are making plans to roll out their own fleet of drones in the near future.
The future of the logistics industry is digitization. It provides a transparent and efficient system to the stakeholders. The companies using digital platforms are clearly edging over their competitors.