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How Digitisation Can Be A Gamechanger For Logistics Startups


Logistics and supply chains will continue to face disruptions, and businesses must continuously look for new technologies to help them overcome these challenges

A report by Deloitte indicates that 79% of companies with high-performing supply chains experience higher revenue growth than the average within their industries

Digitisation might be in its infancy in the logistics industry, with a lot of growth potential

The logistics and supply chain industries are undergoing significant transformation due to technological developments. Digitisation has transformed how businesses operate, allowing them to provide faster services at lower costs. In addition, new technologies have also allowed companies to reduce their carbon footprint. 

The logistics industry has undergone quite a transformation due to digitisation. 

Companies now offer customers 24/7 access to the products they want anywhere in the world. This means they no longer require warehouses or distribution centres to store and ship products. Instead, they rely on third-party providers who deliver goods directly to stores or homes.

Technological advances like shipment tracking, integrated communication systems, and data analytics help monitor shipments throughout their lifecycle. These innovations allow companies to save money by reducing inventory levels while increasing customer satisfaction. 

Artificial Intelligence And Automation

The most significant change technology has brought to the logistics industry is the introduction of artificial intelligence (AI) and automation. AI-powered chatbots and virtual assistants are now being used to handle customer queries. Automated warehouses are becoming more common, with robots handling tasks like picking and packing orders. It not only saves time but also reduces labour costs.

A report by Deloitte indicates that 79% of companies with high-performing supply chains experience higher revenue growth than the average within their industries. Businesses with optimised supply chains have 15% lower supply chain costs, 50% fewer inventory holdings, and three times faster cash-to-cash cycles.

Focus On Sustainability

Green logistics is a term used to describe environmentally friendly practices in the supply chain. It includes using alternative fuels, recycling materials, and investing in energy-efficient technologies. Companies can now track their carbon emissions and set targets for reducing them. In addition, they can use data analytics to identify opportunities for reducing waste and increasing efficiency.

A report by McKinsey found that supply chain impacts account for more than 80% of greenhouse gas emissions and more than 90% of the impact on air, land, water, biodiversity, and geological resources. Therefore, it is no surprise that technology also plays a role in moving towards sustainable logistics. 

With electric vehicles becoming popular, autonomous technologies can help reduce traffic congestion and emissions. This focus on sustainability is good for the environment and helps businesses save money.

Risk Management And Resiliency

Shipment tracking systems allow companies to monitor their supply chains and identify potential risks. In addition, data analytics can be used to assess the impact of disruptions and develop contingency plans. This is an especially important component in today’s global market, where supply chains are often complex and vulnerable to disruptions.

The pandemic has highlighted the importance of risk management and resiliency in the logistics industry. Many businesses were unprepared for the sudden increase in demand for certain products or the shortage of others. As a result, they struggled to maintain their supply chains. However, those with robust risk management systems were able to quickly adapt and continue operating with minimal disruption.

Increased Visibility

A report by GEODIS revealed that only 44% of companies have transversal visibility between suppliers and clients. This lack of visibility can lead to delays, errors, and inefficiencies.

Technology can help solve this problem by providing real-time data on the location of shipments. This allows companies to identify and resolve any issues that may arise in real-time. In addition, data analytics can be used to improve forecasting and planning. So, if a shipment is stuck in traffic, the company can reroute it to avoid delays. The increased visibility provided by technology can help companies save time and money while reducing customer frustration.

The Internet Of Things (IoT)

IoT devices can track and monitor conditions like temperature and humidity. This information can then be used to optimise the supply chain and improve decision-making. IoT devices can also be used to monitor equipment and vehicles for maintenance issues. This helps companies avoid unexpected downtime and keeps the supply chain running smoothly. In addition, the data collected by IoT devices can be used to improve safety and security. 

The Bottom Line

As technology advances, logistics is becoming faster, more efficient, and more sustainable. Digitisation might be in its infancy in the logistics industry, with a lot of growth potential. Sustainability and green logistics will continue to be a focus as businesses strive to reduce their environmental impact. As more companies adopt new technologies, we can expect to see even more transformation in the years to come.

Logistics and supply chains will continue to face disruptions, and businesses must continuously look for new technologies to help them overcome these challenges.  To identify risks and make quick decisions, they need to invest in systems that provide visibility and transparency. Those that do so will be well-positioned to succeed in the ever-changing landscape of logistics.



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