DIGITAL LEADERSHIP IN LOGISTICS

Reaching the efficiency of supply chain, companies start to look for cost effectiveness in cooperation with partners. Together they open up new opportunities for reducing supply chain management costs.

The main sources of cost reduction are the utilization of excess chain capacity and the synergy effect: the use of a common fleet, joint rental of terminals and bonded warehouses. Optimization of processes reduces a number of extra transfers, storage time and transitional “touches” of goods.

The new reality has increased the requirements for order fulfillment: consumers compare not only the cost of the goods, but also the terms of delivery, return methods and experience of interacting with couriers.

High quality service means that goods are delivered in the right configuration just in time. To achieve this, you have to make a lot of changes: to transform the fulfillment to work with small orders, to improve customer service, to optimize the last mile, to launch darkstore and much more. This can become a real competitive advantage.

Businesses strive to reduce the dependence on their staff. Traditional conveyor lines and auto-loaders have been must-haves in logistics for a long time, but in the last decade AI and robots made a significant step ahead.

Robots are no longer just devices that replace human actions. AI constantly analyzes information (sales statistics, warehouse topology, stocks) and suggests required changes.

Technologies help to modernize storage areas, to prioritize and to distribute necessary goods faster than the most skilled employee can. The processes in a warehouse become fast, fully predictable and ready for any changes.

Companies spend more money and time organizing the return process than delivering goods to the customer. However, the reverse logistics is a part of a quality service. This is a strong competitive advantage for the brand: 84% of online customers consider free and convenient return process as one of the determining factors in favor of a particular retailer. Finding the balance between business goals, logistics costs and customer convenience is another great challenge.

Logistics companies cooperate with a variety of clients: large manufacturers, retail chains and individuals. This requires flexibility, a high level of service and a close interaction with everyone. The client wants everything to be simple and clear: delivery in one click, services on time. Digital tools (mobile apps, B2B portals, services for communication with partners) make the communication with the company fast, convenient and profitable, providing the best user experience.

The world is changing so fast, that it is impossible to work without regular IT solutions updates. Now, when IT limits become business limits, the process of digital transformation turns into an ongoing cycle: supply chain and last mile automation, robotization of warehouses, AR/VR technologies implementation, voice control services, digital models for hypothesis testing. This provides flexibility and allows you to create a platform for the next round of innovation.