How Digitization In Logistics Is Transforming The Industry

By  Maham Qasim

November 23, 2021 1:11 pm EST

A fundamental shift in the operation of logistics is taking place. The adoption of the internet has triggered this change, which has blurred the lines between businesses and customers to create a more integrated business environment. Digitalization implies that every company can be their supplier, retailer and shipper. As such, this highlights the vast potential of digitization in logistics.

Not only will the customer be able to track the location of goods as they move through the different stages in their journey, but it will become possible for them to store and manage all their addresses, deliveries and invoices in one place. The use of mobile technology will let people communicate with other businesses seamlessly; there’ll no longer be a need to be within the confines of an office. It will also soon be possible for customers to seamlessly switch from one service provider to another, which will transform competition in several industries.

Industries Transformed By Digitalization:

Some of the industries in which digitisation in logistics has left a considerable impact are listed below:

1) Postal And Courier Companies:

Packages and letters have become insignificant as an increasing number of customers send their documents via email. This has seen postal and courier services experience a decline in the amount of mail they’re sending. Still, it hasn’t resulted in job losses because of an increase in online shopping deliveries.

2) Shipping Industry:

Blockchain is making it easier for customers to track the location of their goods which has dramatically reduced the time and costs involved in insurance. This is because customers can now see where their cargo is at every stage of its journey and send messages to the people handling it.

3) Logistics:

The most significant transformation is seen within the field of logistics itself, as customers become freight forwarders. This is already happening as companies like Uber and Amazon have created an environment where customers can connect with independent contractors using mobile technology.

4) Retail:

Digitisation in the retail industry has seen a rise in sales on mobile devices. Customers now use smartphones and tablets to search for products that they want and then to compare prices. This has caused the downfall of several, as customers are no longer looking for products in person – they’re getting what they need online.

5) Banking:

The boom of eCommerce has also seen an increase in FinTech or financial technology start-ups, providing tools that help independent contractors take payments via their mobile devices. This has led to new business models, where companies can receive compensation directly into their bank account – which was not possible before.

6) Agri-business:

Significant benefits also exist in the agri-business sector because customers can now track irrigation levels and water consumption, which will help growers better manage the supply of water. They can also tell where their products are at any given moment and are sure about the quality of those goods.

7) Healthcare:

Digitisation has dramatically increased access to healthcare, as doctors can now record a video diary for each patient and send it to them daily. This means that patients can see what they’re doing wrong and how to improve their health, which will lead to fewer doctor visits.

Conclusion:

The use of technology has increased the speed of shipments, but it has also made it possible for customers to communicate directly with their suppliers. This means that if there are any problems with the delivery, customers can resolve them on the spot – which wasn’t always possible before. By allowing companies to operate without an intermediary, digitisation has also resulted in a significant reduction in costs.


Maham Qasim

Maham is a copywriter and content creator who's always been drawn to the idea that there's more than one way of getting things done. Her writing career can be thought of as just another side hustle for her; when she isn't crafting content or reading Oscar Wilde, Maham often strategizes about how best to reach out with an engaging voice in this ever changing marketplace!

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