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Nov 17, 2023Blog

Digitalization in Logistics Industry: How connected are they?


I can’t stress enough, that Digitalization in Logistics Industry is rapidly taking over the logistics businesses worldwide. Surely it is because of digital marketing, and digital communications that we all handle online shopping with so much ease. Have I given an idea of the connection between Digitalization and Logistics? Let’s understand this further. For a full fledged E-commerce platform like Amazon, we have considered all these below listed elements and conceptualized various projects. To know more, Our Services will explain more.

A Fine Example of What is Digitalization in Logistics Industry?

Speaking of any system better that could kick-start by initiating a revolutionary in the field and Amazon well deserves the limelight when it comes to logistics. One simply can't help but marvel at how gracefully they wrapped their arms around digitization and creatively used it as a stepping stone to skyrocket their sales in the past 2 decades.

Do you know every minute Amazon completes sales that amount to $283,000? These numbers will change when we look at Cyber Monday and Black Friday. The next interesting fact is that Seller App states that 353 million packages and documents get transported around the world each day.

Though the boom in shipments is overwhelming and showcases a high rise in demand, the global picture of the logistics industry still lacks the shade of digitization.

Also, the digital consumer and socio-economic developments will demand the transformation more than ever and so you need to prepare for the change.

What happens if you don’t use digitalization in the logistics industry?

  • Lack of historical data capture causes misleading information and severely affects business processes.
  • Paper Trail information is lost over time. Once we have all data backed on servers it is safely stored for future reference.
  • Current systems are unscalable owing to unreliable information sources and that causes difficulty in re-organizing schedules on receiving new orders. You lack connection with your transporting vehicle in real-time.
  • Freeform information involving an SMS as a confirmation of delivery is not evident enough to prove the reception of the consignment by your clientele.
  • It is hard to tell without an online system if the delivery team is punctual with the dropping of consignments.
  • A comprehensive system that offers scope tracking load in real-time and receiving customer feedback would definitely help in improving the business.

How digitalization will help improve business efficiency?


The most important part is when you make an impression on your customer by being readily accessible. Connecting with your consumers for feedback and experiences makes up a trivial part of your big data repository. Digitization brings you closer to the person at the receiving end of your services.

Real-Time Data

With the introduction of the live tracking system, load management will be much easier than before. It keeps the back office team updated on the exact time of delivery. With the help of professional IT development teams, enable the proper usage of data reports and also have experts who can analyze the data.

Quick Turn around time

You can also expect a considerable drop in the loading time of cargo owing to and retailers will receive their delivery on time. The evolution has taken the industry as far as knowing the location of the vehicle or the goods. The next step will help enable the movers to even determine what conditions the goods are in real time.

Digitalization in Logistics Industry enables Well monitored work cycles

The use of an unbiased system for calculating delivery rates and performance of drivers is important to keep the retention rates in control. Besides, if the performance is hampering customer relations, the system can easily track it down and necessary actions can be taken. 

Work Optimization

Route optimization is the process of deriving the most economical routes for transportation considering all the factors involved in transit including regulations and highway rules. However, planning an efficient route becomes increasingly difficult as delivery locations are smeared across different areas. As technology is capable of better processing the available data, it becomes easier to plan routes that are efficient and profitable with available resources.

Understanding Data Better

Data analytics has been a benefactor to the logistics industry on various levels. It has caused an aggressive spike in efficiency by cutting operating costs, driving growth, and fulfilling customer expectations. The introduction of data analytics will result in improved decision making furthermore enhancing operational efficiency. It will highlight all the areas of business that need improvement.

Long Term Cost effectiveness

Digitization and Sharing economy are flip sides of the same coin. It enables players in the running to share cost-intensive and huge assets. Instead of one large investment, a company can make several small investments due to the involvement of multiple participants who share fixed costs. A major advantage of sharing economy comes from the ability to enable companies to share expensive physical assets like warehouses and freight transport vehicles.

Fast information processing

Enhanced processing of information will help optimize routes, driver performances, and more. Also with the availability of historical data, augmentation of business will become easier. 

Leveraging customer experience

Augmented and punctual execution of client requirements calls for improved customer experience. With digitalization at the heart of the process, customers have a chance to confirm the reception of delivery. As the entire system, is online, customers can provide confirmation through the devices carried by the drivers as these devices are capable of recording real-time information.

Superior Technology

Technology completely spikes the scale of execution. If we assume a person can manually complete 10 deliveries in a day, then digitization can multiply his capability two or maybe even threefold. With the rise of the digital, you can expect a dwindling workforce without compromising on your corporate credibility. Having worked on some of the e-commerce websites that are showcased in our portfolio you will see how technology powers up the backend of the whole business.

Schedule Management

Currently, 50 percent of the trucks are empty on their return trips. This is actually a potential carrier trip going to waste due to a lack of schedule optimization and data. These trips can very well economize with a digital system in place.

Logistics Updates are clear

The client will be updated on the live status of the package movement without any interference from the logistics player. Machines are more sorted than a human mind to optimally organize the process and attain maximum orders. This will exponentially propel the business profits. Technology keeps the process more transparent for all stakeholders resulting n better coordination between teams.

What is the future of Digitalization in the Logistics Industry?

As an industry that has been the slowest to adapt to digital evolution, it is still yet to redeem itself in the course of action against environmental emergencies. Sooner or later, most players in the corporate world will have to switch to systems that cause low carbon emissions in the environment with regulatory upgrades urging those not a part of the digital domain. The report provided post-analysis by the world economic forum suggests that a staggering $ 2.4 trillion of societal profits are at stake owing to the digital transformation of the industry by the year 2025.

The world definitely needs more focus on enhancing the value of society over the industry. Evidently, the technology will create a circular movement of resources to help logistics dissipate their carbon footprint.

Final thoughts on Digitalization in Logistics Industry

Choosing the right technology is thus a step in the direction of achieving higher profitability. Research is still on the way to enhancing the services in the field of the logistics business. Digitization actually has the power to foster collaborations and get everyone in the firms more connected to add to the level of optimization we aim to achieve.

Digitalization not only simplifies the process of cooperation amongst the people involved but also creates more value for the services provided by cargo companies.


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