Global logistic demand is heating up both in mature and emerging markets, previously it was quite dull but after 2008 it has made a strong comeback. According to the study, globally 800 + million passenger cars in use, i.e. approximately 165 passenger vehicles per 1,000 people.
Today to serve the customers more efficiently, many international logistics and transportation solutions provider companies have tailored their solutions to ensure coordinated goods transfer from origin to end user through various supply chain network segments. According to the study the Logistics Performance Index, U.S. is the leading logistics markets and it’s a highly coherent supply chain network that links consumers and service provider through multiple transportation processes, including express delivery services, truck transport, freight rail, and maritime transport.
No doubt, because of automation and mobile app development, the amount spent on the logistics and shipping industry is huge but it has brought life to customer service expectations and no industry wants to insusceptible from those expectations.
The Footprints of Digital Transformation
If you are taking digitization in a lighter note that you are doing a big mistake as it not only a buzzword, it holds a great potential in its hand. It’s a necessity for every business as it can create a serious impact on an organization – particularly to supply chain operations.
According to the latest report of the Center for Global Enterprise (CGE), a digital supply chain management reduces supply chain process costs by 50%, and increase revenue by 10%.
On the basis of a study, more than half of logistics mobile app development company profess that customized mobile app development solutions are important to their business strategy, but only 1/3 actually invest in it.
Shippers must understand that integration of digitization in the supply chain can add value at multiple levels, so it should be in their internal process.
Companies of various sectors are investing a huge amount in mobile applications to automate their business models in supply chain management. According to research, major logistics service providers such as DHL has announced that it will increase their dependence on big data to minimize risk and it has increased productivity by 25%. Let’s discuss why companies need to integrate digitization in supply chain management.
Need of Digitization in Supply Chain Management
This is a time where logistics mobile app development companies can seize the opportunity of digitization as the involvement of machine data in logistics has increased. It is now possible for logistics service provider companies to actively derive truly real-time insight for inventory optimization, transport analytics and, route optimization.
Here are the ways that can transform the organization and can help them in gaining a competitive advantage with digital supply chain capabilities.
1. Connect and Relate Data Sources
The IoT mobile application has become a core aspect of a modern supply chain; it takes care of processes, maintenance, and identifies better ways to transports products. However, there are some limitations in IoT which are catalyzed by the DSN. For example, electronic devices, integrated with IoT can be used to deliver its data across multiple sites, processes, and even organizations. As a result, more connected devices will automatically lead to more connections and sharing of such data.
2. Data-Driven Plans through Data Visualization
Supply chain companies which want to step up in digitalized age, not only to identify the opportunities and challenges facing their own function but also consider the digital transformation of the entire company.
Today data becomes more crucial, its enlarged analytics opportunities and data visualization capabilities make supply chain management simpler. For example, providing a manager a graph with all real-time performance and time where performance fluffed will help the manager to change the schedule of operations to prevent the failures. Data visualizations also applied to augmented reality, customer self-service opportunities, cloud-based tracking and processing, and precision, local technologies.
The way data visualization help suppliers, customers, and other market partners are really commendable, and its contribution to the digitalization of the business model is amazingly defining the digital transformation agenda of SCM itself.
Benefits of digitization in supply chain management
Customer-centricity
Today, for every business it becomes necessary to put customers at the forefront of their operations as they are the foreteller of every successful business. And digitization is the only thing that can provide a real-time visibility in the supply chain industry to deliver the superior customer experiences. According to Bill McDermott, CEO, and SAP - “Customers determines whether we win, or we lose”. All the latest technologies like Big Data and analytics, IoT, and social media channels enable businesses in every sector to fulfill their customers’ needs. The digital supply chain management holds the leisure of real-time data to sense demand, drive innovation, reduce cost, and deliver the customer the right product at the right time and price.
Improve the management of demand, people, technology, and risk
Digitization in the supply chain management is a revolutionary move for companies and it allows them to improve efficiency by enhancing customers’ experience. Digitization allows enterprises to gather insights, so they can make strategies according to their capacity to react to what they don’t know. It also provides a seamless path for supply chain providers to collaboratively work with each other with a comprehensive understanding of customers’ needs to achieve mutual success.
We all know that time is priceless, and speed always wins. With the investments in AI and automation in the shipping, companies are expecting to cut the cost of distribution and end customer sales significantly. All these highly advanced technologies have strengthened the efficiency, quality control, speed, and customer satisfaction that are essential to growing market share.
Real-Time Inventory Optimization
Logistics service provider companies need real-time insights and inventory systems to view and track deliveries for stores. Customer-centric data can help inventory management to take effective supply chain decisions. With the help of cognitive insight engine, logistics companies can easily manage workforce, overstocks, spoilage, supply chain and inventory.
According to a study, retailers have discovered that digitization helps them to build a long-term relationship with a customer by uncovering patterns to reveal new knowledge and insights in sub-seconds.
Retailers can get tracking visibility and notifications of store deliveries, to provide store managers and distribution centers with just-in-time insights, even for thousands of trucks delivering millions of shipments every month.
Summing Up
Today digitization is no longer an option for enterprises, It’s a necessity and the way supply chain industry is adopting technology is commendable and its adoption will decide who gonna stay long in the industry. No doubt, the competition will only get cutthroat as more newbie come to market but only foresighted, flexible and fast integration of digital supply chains will stay afloat in the sea of digitalized businesses and markets.
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