February 05th, 2021
The arrival of Digital Logistics
Consumers turned digital before manufacturers and distributers, including those in the logistics industry. It may be hard for companies to keep up with the constant changes and technology advancements. Cloud technology is a solution for companies to stay up to date, helping the traditional logistics industry to become a “virtual logistics industry”. New technology changes many aspects of how logistics business operates, brings new market entrances, new customers and new partner expectations, which consequently triggers for new business models. Traditional methods of running logistics needs to be revamped to become digitization and more transparent among partners and operation needs to be adjusted where documents accompany one shipment and if one document is missing, a shipment can be delayed sitting idle for days.
The logistics market with an estimated of approaching US$ 6.6 trillion dollar is at stake, logistics companies cannot afford to sit back and watch, they have to be proactive to new technology innovation. The new technology will target digitization most of logistics functions and its administration, such as automate scheduling, consolidation of pick up and deliveries from multiple shippers, auto instruction to the right warehouse operator to pick up certain items, automate marketing functions to look for cargo
on return trips, deliver auto work order to driver, auto generated issue invoice to customer, and other. With the help of technology in logistics services, a new approach of collaboration among partners are essential in providing a better productivity and lowering operation cost.
An adaptation of real-time digitization and data automation under one platform will give access to independent companies to participate in a technological economic era. It is estimated 535,000 distribution centers scatter in US operate as standalone independent company. Now, imagine if 5-7% of them are willing to collaborate with sales and customer services references under one logistics platform, each company and its customer will gain efficiency, productivity and faster work flows. The environment of traditional logistics businesses that once took days to finalize, is now being reduced by the real-time technology digitization revolution with simple real time clicks. Technology provides an opportunity to many people in isolated areas to participate in new economic and technology way of living.
The environment of business is becoming fundamentally altered by globalization, and followed by recent pandemic that have devasted most traditional business prospects. Our strategy decision to stay competitive and to operate much efficiently have to be based on these contexts. Logistics companies have faces lack of coordination and collaboration between or among effective partners for some times, resulted a decrease in overall efficiency and a higher operating cost on different systems. With an improvement of sharing real time information in cloud platform among active logistics partners is one of key element in improving collaboration and cooperation, including an increase to bottom line. Written by: Eddy Syaifulah, Head of Mahyu LLC.