How Technology is Transforming the World of Logistics
Modern technology has simplified many operations of the logistics industry. Companies can manage activities like supply chain management, shipment tracking, and trucking transportation conveniently via technology.
Technology has also helped professionals track all supply chain management activities in real-time. They can collect business data, transfer it easily and use it to derive valuable insights.
So, logistics departments can achieve better productivity, business performance, and revenue.
If you’re looking to upgrade your logistics technology, this article is for you. Here, we will discuss how technology impacts logistics operations and its benefits.
Better Visibility via GPS Tracking
Companies no longer rely on printed directions and guesswork to transport goods. They can transport goods faster and more accurately at the right locations through GPS.
Through GPS, the professionals can understand the exact pick-up and delivery locations. In addition, they can also receive route directions. Real-time traffic data is also available. It helps them deliver goods timely.
GPS technology has allowed companies to gain better visibility of their shipments. Any logistics service provider can track their goods during transportation. So, if the delivery executive faces a problem, the company can look into it.
As a result, companies can provide better customer service with lesser delays. They can also reduce product damages caused due to improper transportation. Moreover, companies can ship products to remote locations without problems.
IoT for Sharing Business Data
Companies use IoT (the internet of things) to connect their internet-enabled devices. It allows them to transfer business data between devices and departments easily. IoT provides the intelligence to manage business operations and associated devices.
The sensors in IoT devices improve the transportation of goods. Sensors check the humidity, temperature vibration, and shock during transportation.
As a result, companies can preserve products that need to stay fresh. Further, the devices also send real-time data to logistic departments during the process.
IoT devices collect a lot of data daily during various business operations. Managers can use this data to improve shipping processes and perform predictive maintenance. Moreover, they can keep their machines in check by understanding machine-specific data.
Other advantages of IoT in logistics –
- Improving warehousing operations and making better decisions
- Real-time shipment tracking and monitoring
- Effective fleet management and control
- Remote management and control of inventory assets
Transportation Powered by Drones
Gone are the days when trucks and cars were the only way to transport goods. In this modern era, drones are the new transporters or shippers.
Over the years, drones have become a vital part of the logistics industry. Warehousing and product delivery have become better with these devices.
Drones have the potential to transport goods to almost any location. So, even if the area is remote and congested, drones can handle it. That’s why companies enjoy the following benefits –
- Fast deliveries with fewer complications
- Better customer service and satisfaction
- Fewer road accidents and traffic
- Reduced air pollution
For instance, Amazon has launched Amazon Prime Air, an initiative for delivering goods via drones. The company will use small drones to deliver packages within 30 minutes. These packages will weigh around 5 pounds.
The FAA has approved the company’s project. Therefore, they can safely and efficiently ship products to customers.
Improving Customer Satisfaction Through On-Demand Services
On-demand services emerged in the food industry for receiving food quickly. It has made its way into the logistics industry. Now, companies are using it to offer better customer solutions.
Logistics apps allow customers to book deliveries and select pick-up locations and dates conveniently.
Doing all this from the app makes the process simpler for the service provider and the customer. Moreover, companies don’t have to include any third parties within the transaction.
So, on-demand technology lets companies manage their warehouses and related activities smoothly. The apps also simplify the tracking of shipments. Therefore, it improves the communication between professionals and departments during shipping.
These on-demand delivery model also reduces infrastructure costs. Companies won’t have to invest in a physical store. In addition, they can cut costs on operational expenses, staff compensation and recruitment.
Digital Payments for Added Convenience
Making payments and handling transactions is much more convenient with digital payment systems. So, logistics departments don’t have to deal with slow payment processes. It increases workflow efficiency and overall company performance.
Popular digital payment methods include payment applications, bank transfers, credit cards, and debit cards. These allow companies not to rely on cash and cheques anymore.
So, handling paper invoices, paper records, and manually entering transaction data – is reduced.
When logistics professionals avoid monetary transactions, they can enjoy reduced workloads. Further, tracking payments is more convenient using digital methods.
Digital payments allow employees to focus more on enhancing services than handling cash. It also reduces the chances of human errors. Furthermore, there will be fewer chances of monetary theft. It’s because of the lower amount of physical cash, bills, and cheques.
Unified Platform for All Operations
Cloud-based logistics software provides companies with a unified platform to handle all logistic operations. They can track shipments, transactions, delivery, purchase, and payments. Professionals can handle all of this from a single platform using these tools.
So, these tools reduce the complications of managing data and payments. There are fewer chances of manual errors with these tools. Moreover, it leads to better pick up, delivery, and quality customer services.
That’s why logistics software like Oracle NetSuite has become so prevalent in simplifying operations.
The Bottom Line
Companies will adopt more technologies to satisfy customer demands and requirements. Technology will continue to help companies in managing their supply chain activities. Moreover, it will enable companies to withstand industrial competition and enhance their existing processes.
Technology will play a vital role in reducing manual processes. So, logistics departments can improve their efficiency by using automation.
What’s more? Collecting data from logistics software and IoT devices will improve decision-making processes. Organizations can make decisions depending upon the customer business data. As a result, they can improve logistics services effectively.
Also Read: IoT in Supply Chain Management