Digital Logistics – A new way to accelerate your logistics business
Trends 6 min read

Digital Logistics – A new way to accelerate your logistics business

The logistics and supply chain industry is constantly evolving and reshaping with exceptionally dynamic changes. The digital transformation has entirely transformed the logistics processes, systems, and strategies.

This new logistics enhancement resulted in saving millions of dollars in operational costs, improving supply chain management, empowering the logistics market, and providing an enormous rise in supply chain velocities. This exceptional logistics transformation introduces a new era known as Digital Logistics.

“The line between disorder and order lies in logistics…” –Sun Tzu.

Let’s delve deeper into what digital logistics is and what impact organizations will witness after adopting Digital Logistics in their business operations.

What Is Digital Logistics?

The critical elements in the logistics and supply chain industry are the inventory, orders, shipment process, storage, warehouses, and material handling. The supply chain process majorly revolves around these elements. Digitization makes sure that there is end-to-end visibility between these elements.

Digitally transformed operations collect traditional logistics data and automate it to improve and accelerate the logistics processes. As a result, it is now widely used to avoid human errors in data handling. It works as a host of web-based enterprise applications and offers comprehensive enterprise and extended supply chain visibility. Such visibility results in reducing network-wide inventory levels and responding to logistics events quickly.

By combining cloud, AI, and data-driven technologies, companies can integrate core warehouses and transportation management systems to enable continuous improvement in supply chain process models.

How big is the Digital Logistics Market Size?

Let’s take a look at the digital logistics market size. The global digital logistics market is expected to be worth USD 46.5 billion by 2025, growing at a CAGR of 21.7% during the forecast period.

In 2020, it reached USD 17.4 billion market size. The continuous rise in the number explains how tremendous this market is. As a result, enterprises are now willingly adopting digital logistics solutions for their day-to-day logistics and supply chain operations to serve their customers better.

digital logistics market size

Moving on, let’s take a look at the critical areas where digital logistics play a significant role-

Innovations in Transportation & Logistics

Transportation

An automated transportation management system (TMS) powered by AI helps in automated load building, inbound and outbound freight movements, and efficient carrier management.

Distribution

Digitally operated supply chain management strategy with AI & automation enhances current generation fulfillment processes and real-time warehouse management system technology.

Companies adopting digital logistics can easily track every little activity in the logistics industry. Logistics industries are also automating their last-mile delivery systems to increase process efficiency. The customers can track every order in real-time with advanced tracking systems. A slight delay in the delivery path will inform each concerned authority immediately. If there is a requirement for rerouting, the necessary actions will be taken on a priority basis to avoid delays and additional kiosks. Companies are reshaping their business models to keep track of every activity in logistics operations.

“Adopting Digital Logistics in business operations leaves no room for error.”

Top Reasons Why Logistics Business Need Digital Transformation

Speed, Time, Optimization, and Efficiency have always been significant challenges in the logistics and supply chain industry. However, digital transformation has revamped this industry as Logistics 4.0. But still, many logistics and supply chain businesses need to understand the full potential of cloud and automation in business operations.

Want to know more about the biggest logistics & supply chain challenges plaguing companies today and what supply chain leaders can do to mitigate risks and overcome common challenges? Check out our vigilantly curated and research-backed guide on comprehensive insights and monetization ideas about digital manufacturing & resilient supply chains in the post-pandemic era.

INFOGRAPHIC – EXECUTIVE COMPASS

A 2022 Digital Guide to the Global Supply Chain Crisis

Download Now

digital transformation in manufacturing

Customers’ expectations and competitive differentiation require speed and time. These two critical areas have a significant impact on the logistics and supply chain industry. According to various surveys, the faster and smoother a business logistics process works, the more customers the business will get, eventually securing a competitive advantage.

Speed and time play a significant role in the following areas of transportation & logistics:

Information management: The most crucial part of logistics and supply chain is managing and maintaining accurate information and providing the right one at the right time for the right process. Digital logistics streamline and smoothen the information with the correct people, context, and purpose and makes the logistics process seamless.

Customer service: In the logistics industry, the demand for fast responses to information and communication is higher. Businesses try their level best to deliver the suitable parcel at the right time to the right person. Digital logistics enables this speed and time and allows companies to operate swiftly.

Organizations need to achieve business agility to cut down the additional costs and establish more effective communication among the services providers and partners.

Unlike the traditional logistics approach, digital logistics pumps up the agility that helps modern organizations establish smooth communication with every supply chain member. As a result, businesses are now shifting from traditional to data-driven business models.

Top Benefits of Digital Supply Chain

Following are the critical benefits of adopting Digital Logistics-

Inventory Management Optimization

Organizations adopt advanced analytics powered by AI to drive inventory optimization solutions. It helps them to efficiently and accurately optimize their inventory management system in the supply chain with complete transparency.

Advance Alarms

If any unexpected issues occur in transportation operations, logistics service providers will get quick alerts. These alerts will help them to take necessary actions like diverting or rescheduling transportation activities immediately to avoid huge losses.

Transparency

With digital logistics, customers receive more opportunities, more transparency in the supply chain, and more options to inform both manufactures and delivery systems of their requirements and preferences.

Provide Insightful Information

Data-driven logistics models help local and national authorities better manage the transportation networks such as roads, rails, ports, or air. It gains detailed insights about the planned infrastructure from port docking to multi-drop end fulfillment.

Improved Distribution Method

Modern supply chain companies adopt digital logistics to leverage the benefits, including warehouse management, technology, and fulfillment data. It also automates transportation processes and carrier operations and helps labor management, operation tracking, and employee engagement strategies.

Logistics Technology solutions from Rapidops help you provide more customer-focused services and mark a massive difference between you and your competitors. It will take your business to new heights and help you to stay on top of others.

Impact of Digital Logistics on Business Operations

Digital Logistics has a positive influence on the transportation and supply chain business operations because –

  • Intelligent Decisioning powered by AI helps service providers to make accurate and intelligent decisions based on insightful data. Such choices help in enhancing the supply chain process to a great extent.
  • Automation reduces the burden of the workforce by managing their administrative tasks efficiently and allows them to focus on making strategic improvements related to customer satisfaction.
  • Combining the power of AI, ML & IoT enhances the customer experience as it comes with complete transparency and end-to-end visibility. From inventory status to order fulfillment and delivery, businesses and their partners are able to see the operations.

If you’re going to start your innings in the field of logistics and supply chain, opting for digital logistics will surely bring victory to your stand.

Final Words

Digitization in the logistics and supply chain industry comes as a blessing for the service providers. It offers a better customer experience and allows them to work with 100% transparency and visibility. Logistics technology solutions will help you to meet your exceeding customer expectations quickly and build robust relationships with them.

Digital transformation continuously revamps industries to provide a better customer experience. If you are also looking to digitize your logistics business, feel free to reach out to us. Rapidops is a leading digital transformation company helping global brands to rethink and reshape their businesses with next-gen digital strategy, innovation, and automation. We help organizations transform their business operations with the latest digital technologies.

Vandana Parashar

Vandana Parashar is a Content Writer and a learner with an ongoing curiosity to learn new things. She writes for B2C and B2B businesses, creates content that holds attention, builds authority, and drives action.

What's INSIDE

Let’s build the next big thing!

Share your ideas and vision with us to explore your digital opportunities

Similar Stories

Top 10 Software Development Trends For 2023

Software development trends keep changing every year, thanks to innovations, the internet,...

read more
Trends 4 min read

Web 3.0: Transformation in Traditional Businesses and Industries 

Overview  The hype created around Web 3.0 is not all hoaxes; Web...

read more
AI Trends 5 min read

Top 5 AI Tools: The Essential Tools to Forge Ahead in a Data-Driven Future 

"Artificial intelligence (AI) is expected to contribute USD 15.7 trillion to the...

read more