The logistics industry is like a busy highway. But what happens when this highway is congested with paperwork, manual processes, and antiquated systems?
The answer is simple: chaos.
In today’s fast-paced world, digital transformation is the key to success.
By implementing digitization and automation in antiquated sectors like logistics, businesses can streamline their operations, reduce costs, and increase efficiency.
It is time to pave the way for a digital highway in the logistics industry.
The Importance of Digitisation and Automation
We live in a world where time is a commodity, and the logistics industry is no exception.
According to a report by Kofax, 32% of transportation and logistics companies rely on manual steps in more than 50% of their processes.
By digitising and automating these processes, businesses can save time and money, reduce errors, and improve customer satisfaction.
The Benefits of a Digital Highway
Imagine a highway with no traffic jams, no accidents, and no delays.
This is what a digital highway can do for the logistics industry. By digitising and automating processes, businesses can:
- Reduce Costs: A report by McKinsey & Company found that digitization can reduce supply chain costs by up to 30%.
- Increase Efficiency: Automating repetitive tasks can free up employees’ time. Which allows them to focus on more critical tasks that require human expertise.
- Improve Visibility: Digitisation and automation provide real-time visibility into the supply chain. This allows businesses to track shipments and respond to issues quickly.
- Enhance Customer Satisfaction: According to a survey conducted by Forbes: 58% of customers would pay more for better customer service. Additionally, 70% of customers would pay more if they knew they would receive a convenient experience.
Overcoming Obstacles: Augmentation – Not Emendation
The road to digitisation and automation is not without its obstacles and challenges.
One of the biggest is resistance to change.
Many businesses are hesitant to adopt new technologies, fearing that it will disrupt their operations or that employees will not be able to adapt.
New technologies, particularly those that automate tasks and reduce human labour, often leads to concerns about job elimination. However, it’s important to note that history has shown that jobs typically do not disappear, but rather change.
By delegating some of the more mundane tasks and decisions to machines and providing visibility and scenarios for human consideration, logistics professionals can use their experience, knowledge, and cognitive powers to drive strategies and deliver value to the organisation.
Instead of constantly dealing with fires and manually handling large amounts of (usually bad) data, as well as worrying about human errors, they will have the freedom to consider the bigger picture and excel at their work.
Another challenge is the lack of skilled workers.
According to PwC, 55% of employers most worried about digital skills say innovation is hampered by a lack of key skills.
Getting the right skills to implement these new systems, processes and ways of working is far from easy. Especially when findings like 44% of Europeans between 16 and 74 lack basic digital skills crop up.
The need for clean data, functional infrastructure and the know-how to effectively build and deploy high-quality models is a challenge that many organisations face.
The Future is Digital
With the rapid growth that technology is undergoing, the logistics industry is at a crossroads.
Businesses can either continue to stick to traditional methods and risk falling behind their competitors, or they can embrace digitisation and automation and pave the way for a digital highway.
The logistics industry is like a busy highway, and digitisation and automation are the keys to unlocking its full potential.
By embracing new technologies, businesses can streamline their operations, reduce costs, and improve customer satisfaction, paving the way for a brighter, more efficient future.
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