Revolutionising logistics landscape
In the past, logistics was all about delivering products to customers. But now, the new generation of logistics service providers have resorted to a customer-centric supply chain characterised by agile operations and customised solutions, says Hector Pate
There has been a flood of innovations and technological developments in the past few years, but the logistics sector has been relying on manual processes up until recently. This scenario is gradually changing due to the emergence of new age entrepreneurs who are adept at and aware of the significant benefits that technology adoption can bring to the logistics landscape. With consumption patterns changing and last mile delivery assuming more importance, the industry has quickly adapted to the volatile environment and is becoming an area of interest for the younger generation.
The younger generation is keen to understand the deeper nuances of the sector by gaining careerfocused education in supply chain management. A 2019 study found that 99 per cent of young professionals considered working in the supply chain a good career choice. With the industry going through massive transformation, the younger generation is eager to explore the intricacies of logistics. As big players try to align with new trends and expand their operations, young talent is getting a chance to work for them, learn on-demand skills, and learn industry best practices.
Cutting-edge technology is now an inevitable part of logistics, which is one thing that excites today’s digital natives. These young professionals are the key drivers of change as they are leveraging opportunities to transform supply chain workflows with technological breakthroughs. Let’s understand how digitisation, driven by new-age entrepreneurs, can shape the logistics landscape in the coming years.
TECH-ENABLED INNOVATION
Drawing on their learning about new technologies, there is a new breed of entrepreneurs who have observed a need to automate repetitive tasks and introduce greater efficiency to the system. Archaic systems such as spreadsheets and manual processes are being replaced by tech-enabled systems so logistics companies can meet consumer demand and achieve transparency. There is a growing
demand for ultra-fast delivery for both essentials, such as groceries, and non-essentials. A one-size-fits-all approach is not practical, and logistics companies are leveraging innovation powered by technology to cater to businesses across sectors. Companies are changing their business strategies to provide value-added services and respond more flexibly to changing consumer demands.
CUSTOMER-CENTRICITY TO BE KEY FOR SUPERIOR LOGISTICS EXPERIENCE
Until a few years ago, logistics was all about delivering products to customers. A focus on customer service or a customer centric approach was evidently missing. The situation, however, is quite different today. In the face of large shifts in consumer behavior, the new generation of logistics service providers has resorted to a customercentric supply chain characterised by customised solutions. From real-time tracking of orders to increased control over delivery windows, companies are developing new capabilities to enhance the customer experience. Industry best practices pertaining to order fulfilment have gained more importance, and companies are leveraging collaborative partnerships to support customer demands. With the help of digital tools, the new generation of logistics companies is configuring supply chain activities to create tailored experiences for customers.
TECH ADOPTION TO STREAMLINE SUPPLY CHAIN LIKE NEVER BEFORE
Tech adoption became an imperative, and logistics companies scrambled to implement tech-enabled solutions to survive and thrive. The rise of e-Commerce fueled tech adoption, with companies opting for drones and similar technologies to keep pace with the instant gratification needs of customers. Temperaturecontrolled warehousing is another key area that has witnessed significant developments. Time-sensitive supply chain management and warehouse management systems (WMS) are catalysts in driving resource usage optimization across the supply chain.
WMS is critical in reducing error rates, improving traceability and transparency, and the next generation of logistics solutions is moving towards more productive and efficient supply chains.
DIGITISATION TO PROMOTE SUSTAINABLE LOGISTICS PRACTICES
With rising concerns about CO2 emissions, the storage and transportation of goods in an environmentally sustainable manner is becoming increasingly important. By gleaning insights from big data analytics and AI, logistics companies are employing a host of technologies for route optimisation and thereby saving energy. Consumers today are aware of their actions and associate with companies or brands that are responsible. Firms are now in a position to enhance efficiency and save costs by making sustainability an integral part of supply chain management.
The growth in digitalisation of 3PL is supporting the 3PL market in India. The 3PL players in India are more receptive to the trend of digitalisation
Digitisation is reshaping the industry and there is a new generation of companies accelerating tech adoption across the sector with a keen intent to optimise supply chain workflows and build trust among their customers. With companies challenged to deliver unparalleled value, digitisation is the way forward to gain competitive advantage. By embracing digital innovations, companies can capitalise on a plethora of opportunities.