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Role Of Digitization In Logistics And Transportation
Digitization is bringing in structural changes to the industry and many start-ups are coming up with new disruptive processes and concepts
Photo Credit : Shutterstock
The 20th century was the age of physical trade, and the 21st century is the age of digitization.
Digitization has changed the way consumers buy and sell products and services. New ideas, technologies and practices emerge on a daily basis, impacting industries across geographies. Conventional logistics, including trucking, is one such domain that has been swept off its feet by this wave of digitization.
What exactly is digitized trucking?
It is an automated system in which technology helps optimize the vehicle-to-infrastructure relationship. Digitized trucking can include systems like a GPS tracking, or real-time data analysis, all of which contribute to simplifying operations.
Digitization is the only way forward to scale businesses and bring growth to sectors, including trucking. Information Technology is the first step towards making this sector organized, and digitization can help companies change process redesigning and workflow to make it more efficient. Here are some of the ways that digitization helps trucking -
1. With the help of digitization, a small trucking company can easily compete with larger ones if they adopt information technology that is available at a reasonable cost. This can be achieved by removing the barriers of having physical space, and adopting virtual offices, while also breaking geographical barriers. Becoming a data-driven organization will be key to competing at a bigger level, and gain a competitive edge by being able to make informed and timely decisions.
2. Trucking companies can immensely reduce paper work, thus reducing overall carbon footprint and helping the environment, by using online Goods Receipt (GR), and digital Proof of Delivery (PoD). It also helps them store data in soft copy, thus reducing reliance on record management and helping waste management.
3. Electronic data interchange (EDI) can also help companies transparently share data with customers and suppliers, while reducing duplicity of manual paperwork. This also means more internal staff growth since human involvement in redundant work is reduced, and the focus is shifted towards more productive work, thus improving overall efficiency of the organization.
4. The implementation of GPS through digitized trucking can help provide timely information and updates to customers, thus improving Turnaround Time (TAT) and real-time access of vehicle location. Moreover, digitization can also contribute towards reducing a truck’s maintenance cost through predictive information on vehicle’s operational state, thus reducing overall operations cost.
5. A digitized trucking system can introduce cutting-edge supply chain platforms, and ensure better utilization of resources. It also reduces probability of error, which saves up time for managers who can now focus on strategy, instead of daily administrative tasks. Overall, digitization helps grow the business by improving customer SLAs (Service Level Agreement).
6. When you integrate digitized trucking into your overall logistics supply chain, you can ensure all deliveries happen in timely manner since you have all data on estimated shipment arrival times, information about departure times to factories, warehouses, and customers.
Digitization is bringing in structural changes to the industry and many start-ups are coming up with new disruptive processes and concepts. This will ultimately lead to higher investment in trucking sector from international markets and accelerate growth of this industry.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.