The logistics industry is taking on a different shape and approach every day.
The change is constant, and changes in the logistics industry come from multiple directions. The logistics industry controls and contributes to the economy of any country as they bring in foreign currency. The industry has been redefined time and again with different terminology.
A long time ago, people working in this industry used to refer to themselves as working for “CHAs.” Later, this became more defined, and people started using terms like “shipping company” or “air cargo.” Eventually, this evolved into “logistics,” and now, we often see it referred to as the “supply chain industry.” In reality, the scope of work performed by professionals in the industry has grown every time there is a change in terminology. Today’s organizations are not limiting themselves to clearance and transportation activities but also handle transportation, customs clearance, freight, warehousing, last-mile delivery, and more. Each vertical is an industry itself, such as warehousing or e-commerce/last-mile distribution.
While working in this industry, experts interact with various vendors, including workers in loading/off-loading operations, transporters for cargo/container movement, CHAs for customs clearance, shipping and airline professionals for freight handling, and 3PL & 4PL players for warehousing. The industry is vast and global, with every company expanding their operational footprint worldwide. Monitoring all functions and linking various activities or departments internally and externally with clients/vendors is next to impossible without a digital approach.
Nearly everyone started adopting digital solutions, such as software and ERP systems, and today, these processes are just a click away. Despite the advancements, a lot of manual work persists in the logistics industry. Even in the digital world, this industry still demands several printed documents for transfer between countries. The reason for this is that certain changes are nearly impossible, especially since banks and government officials are involved, and there are safety considerations, particularly in sectors like F&B.
The only way organizations can manage large-scale operations and ease the workload of their staff, clients, and vendors is by transmitting most data digitally, implementing a robust digital process.
Without this, organizations will incur additional costs and suffer from human errors, and the data will always be questionable, making quick verification difficult.
When nearly every organization started implementing strong ERPs to handle their internal processes digitally, many missed addressing the client’s needs fully. Some visionary companies introduced PO Management Modules to ease the client experience and provide visibility using internal reference PO numbers. With these tools, companies have seen significant success, particularly when they use multiple vendors but can view the entire operation in one place. Many organizations may not fully understand the importance of these tools or are ignoring them, but going forward, such tools will be crucial in selecting logistics partners, and they may come at a cost.
While the industry moves towards digital platforms, very few organizations strongly believe in paperless operations.
Doing so not only saves the hassle of handling paper and storage costs but also increases operational efficiency by up to 70%. This shift allows staff to perform better with the help of digital solutions, enabling timely responses and data transmission. This initiative has not only saved costs and increased efficiency but also contributes to social causes, such as saving the environment.
AI and Machine Learning: The Future for Logistics
Additionally, organizations and IT companies can achieve remarkable results by integrating AI and machine learning into existing and new software. This advancement will bring much more visibility to operations. By making these changes and implementing such tools, organizations can maintain the speed and meet business needs effortlessly. Educating team members and clients about these changes is essential. Industry experts should welcome such advancements, and others will eventually follow suit. This will create a positive environment for internal staff and clients, resulting in increased profitability and continuous progress.
