Every aspect of business has to evolve to stay in line with the current technological advancements. The world of logistics is not immune to technological advancements and the evolution of modern business. Logistics is crucial for almost any business, from small businesses with small clothing production to major companies that ship thousands of packages daily. In a nutshell, logistics plays a pivotal role in the success of businesses across the world.
If you’ve ever wondered how a product or service reaches the final customer or destination – with the help of logistics systems and supply chains. So, if you’ve ever wondered how technological advancements are shaping and transforming the world of logistics, we’ll discuss the most important insights and advancements.
How did traditional logistics look like?
Traditional logistics relied on a series of manual processes using paperwork, spreadsheets, endless phone calls and repetitive manual labour. Even though such an approach has always been functional, it has come the time to make it more efficient and cost-effective.
With the advancement of technologies that can be used in logistics came a new feature that drastically improves customer experience. Real-time tracking and instant visibility are embraced by many and in turn, expected by many users. If you can’t track your order, customer satisfaction might even drop by 50%. This feature has elevated customer expectations and enabled tracking at every step of the order processing, from shipping to delivery. Users no longer have to worry about the delivery dates as they can check the status of their order at any time.
Sustainability has also entered the world of logistics. Environmental concerns are on the rise thus, the need for sustainable logistics practices has emerged. There’s a growing need to reduce carbon footprint in every industry, especially logistics.
From using renewable sources of energy to reducing empty runs to optimising logistics operations, the need for sustainable practices has emerged. Other strategies include using eco-friendly packaging, route optimisation for better efficiency and using renewable energy. Hopefully, these will become a golden standard and logistics will become even more sustainable.
Outsourcing logistics to external providers
If there’s a need to outsource a certain aspect of your business, it only means that you’ll get to focus on other core competencies. Today, you can outsource logistics to companies like General Carrying which offer third-party logistics services. By making such a decision, you can rest assured that skilled professionals will take care of your logistics operations and deliver great results. Third-party logistics providers can provide access to advanced technology and expertise by also being a cost-efficient solution and a decision.
Automated inventory management
Whenever a task is automated, the results only lead to better work efficiency and a satisfied customer at the end of the supply chain. One of these automation is automated inventory management. The result is the reduction of manual entries, which can result in human error. You know the exact stock and reduce the chances of overstocking or understocking.
Order fulfilment, replenishment, tracking and other inventory management processes will be fully automatised, which results in better efficiency. In a nutshell, when you have total visibility of your inventory, you’ll ultimately have better control of your operations.
Modern fulfilment centres
The logistics landscape has been altered by the switch to online shopping. E-commerce is driven by constant demand, and there’s also an increasing need for fast, precise, and cost-effective fulfilment. As a result, modern fulfilment centres have taken an integral part in logistics operations. Their purpose is to help businesses meet customer expectations for fast delivery. They rely on different tools to improve every aspect of a supply chain, so using their services is cost-efficient.
Cloud-based solutions have also become part of logistics as they have become a game changer. Data is essential so making it accessible from anywhere, from inventory management to route optimization, will enable logistics managers to make informed decisions. It also reduces the cost of expensive infrastructure, as businesses will only use what they pay subscriptions for to improve their logistics.
From data on customer behaviour, delivery time, inventory management and other parts of a supply chain, data analytics has never been more important. With the right tools, software data analytics, and further insight, businesses can easily optimise and streamline logistics operations.
Technology has been a major game changer in logistics. These insights have shown that the logistics have already evolved significantly. Businesses just need to adopt these changes and embrace the evolving logistics solutions to stay competitive and ensure efficient operations.