Digital transformation is now an indispensable concept for all sectors. Blockchain technology's change in payment systems 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 rapidly. The 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.
The high adoption of digital technologies enables strong use of transport and logistics companies as well as supply chains. If you are wondering what the digital transformation in the logistics and transportation sector will bring by 2021, you should definitely read this article.
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. Digitization in logistics generally requires a large investment volume. But all logistics companies can reinvent their working models within their own capacity and use digital tools to deliver value to their customers.
Why is Digital Transformation Important for the Logistics Industry?
Inadequate use of assets in the logistics and transportation sector increases the probability 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 build a robust platform that solves these challenges. In addition, values such as optimization, speed, efficiency and timing are at the forefront for the logistics industry. Therefore, it can be expected that the concepts of digital logistics and mobile technology will be included in the sector rapidly in 2021.
What are the Benefits of Digitalization for Logistics Companies?
Digitization in logistics can benefit companies in the industry in the following areas:
Speed and Time Efficiency
Speed and time are the two most basic factors in the logistics industry. Minimum time and high speed provide competitive advantage for companies in this industry. Companies that use robotic process automation to automate time-consuming processes can have a better chance of competing and becoming a leader in the industry.
Connection Between Different Devices
Digital conversion allows very fast connection between devices. With the help of the 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 analytics, business intelligence and artificial intelligence provides benefits in many ways, including supply chain management, cost control, process optimization and customer experience improvement.
