Why should you make your operations digital

Aura Craciun 16.05.2019

Due to the rise of e-commerce, the expectations in B2C and B2B environment raised as well. Customers in all parts of the world are now increasingly voicing demands in terms of levels of service and the flexibility of logistics services. Both individuals and businesses expect to get goods when agreed, with more control and visibility.

To stay competitive and retain market positions, logistics service providers need to address a host of new and pressing issues – rapidly growing customer demands, cost reduction requirements, and the need to being compliant with regulations and environmental legislation. Use of digital technologies has been identified as key in addressing and overcoming these challenges. Understanding how to unleash the potential of digital technologies is not only essential to meeting greatly increasing customer expectations – it is also imperative for future survival.

So how can you make your logistics operation digital in order to meet disruptions and growing demands? Let’s see some steps

1. Understand the strategic reasons for embracing digital technologies

Why do you think it’s necessary to go digital? What would be the benefits?
Clearly, these changes are not made just to be in style, but to add more value to the customers.
– Reduce the costs
– Increase transparency by offering access to more info
– Exploiting new business model for gaining new customers
– Generating advantages over competitors

2. Increase efficiency

Digital solutions for logistics optimization and collaboration have proven to unleash great savings (up to 35% cost reductions). You can look for opportunities in several different areas: For instance, have you considered what the average truck fill rate is for your operation? Or how much time is spent by your resources on data entry activities? Digital solutions can help optimize and streamline many of these areas.

3. Customer expectations

Most companies that subcontract logistics services now favor digitally enhanced, simple and user-friendly experiences at every stage of the customer journey. Brands like Airbnb, Uber, and Spotify are now well established in the competitive landscape, and many companies have realized that the value chain has moved from the possession of assets and production tools to the mastering of customer interface. Making the customer experience digital is a key issue.

4. Connect to the network and community

Many logistics service providers right now have integrated with different telematics, systems, suppliers, and so on. If using the right software, all systems can communicate with one another, allowing for easier transactions such as uploading orders or checking order status, booking or downloading invoices. This leads to a better workflow, faster management, therefore increase of efficiency.

Be prepared to embrace change and cooperate with tech and innovation companies

It’s happening! As a logistics service provider, or a transport company or forwarder, there’s no reason to be afraid of disruption from startups and tech companies. Instead, see them as big opportunities and embrace evolution!