How Digitization Boosts Global Logistics Solutions?

Send to friend

Adapting to the changing work environment is a hallmark of great companies, and in today's rapidly changing world, adaption and innovation have become a necessity.

Among all the industries, the logistics industry is rapidly developing along with the rise in customer demands. Digitization has brought a myriad of change in different kinds of industries around the world, and the global logistics industry is no exception.

If you connect every link of the supply chain digitally, it will enhance the efficiency of a logistics company. Companies with advanced shipment technologies ensure timely pickup and delivery, which, in turn, gain customer trust and thus excel in their field .

Uberization of the global logistics industry is the need of the hour and digitization will help to achieve on-demand mobility solutions.

The logistics and courier businesses are evolving. Thus, it is the right time to understand the benefits of digitization in global logistics.

What is Digitization?

Digitization is competently using technology to create new opportunities that create value for the business. With modern innovative technologies such as IoT and Artificial Intelligence, the global logistics industry can be reformed entirely by digitization for its betterment. The main objective of the logistics industry is to deliver the right product at the right time and right place. With digitization, it can be completely automatized and taken care of.

Digitization will descrease the chances of human error and will increase the synchronization within the team by which the work can be done more prudently.

Application of Digitization in Logistics

With digitization, the era of faster and smarter technologies has just begun, especially in the realm of global logistics. With the advancement of technology, improving the functioning of logistics, digitization has proven its worth as a potent tool in facing the rapidly changing demands of the customers. With the inclusion of digitization, the global logistics industry would witness market growth of more than $16,445 billion by the year 2026.

From self-driving cars to vehicle-to-vehicle algorithms, digitization has brought a new wave of reforms that was duly needed by the global logistics industry. Better communication and better data management have given more control and sustainability to the sector, thus increasing the rate of customer satisfaction.

Critical points for implementing successful digitization in the Global Logistics Industry

Changing trends and customer expectations

Despite all the reforms and changes, the primary thing in the logistics industry remains the on-time delivery of the product. With the inception and now the expansion of online platforms, customers expect to have an immersive digital experience like their real experience at the store. Thus, better product delivery can give you many brownie points, and you will have your name registered in the good books of your targeted customers.

Global market leaders such as Amazon and Wal-Mart are adapting digitization to provide an excellent logistics experience to their customers and to keep their customer retention intact. For example, Amazon provides a two-day product delivery option for over 40 million products for its paid ‘Amazon Prime’ subscribers. On the other hand, Walmart has just joined the two-day delivery bandwagon after overhauling their logistics process with the help of digitization.

With Big Data Analytics, the companies can have detailed information about the customer. It also provides a chance for the user to track their order at every stage of the delivery.

Digitization provides you with a chance to reform your product delivery process and makes you stand out among your peers. The 'Amazon Effect' has brought a paradigm shift in the product delivery process of many big companies; moreover, it has enabled them to provide an excellent service due to the ever-evolving demands of the customer.

Enhanced Collaboration

The positive impact of digitization is that it has brought global market leaders together to provide a collaborative effort to increase the customer experience. Collaboration also includes cost efficiency as the companies can save 15-20% on the outsourcing of each order. An excellent example was that of a collaborative approach when US Foods joined hands with Synco. Both companies started to have a collaborative approach that saved more than $ 600 million.

In addition to the cost savings, the companies can exchange technical expertise and implement techniques such as IoT supply chain management for enhancing customer experience that helps in keeping a fruitful long term relationship with the clients.

The collaborative strategy will also help in opening new business opportunities for the companies as they can increase their user base, make a long-term strategic analysis of the business field. Moreover, the organization can use the digital platform for new, improved virtual collaborations.

Revolutionary Tech impacting the Logistics Industry

Now, we shall have the list of technologies that enhance the ability of the logistics service providers. The techniques included will also increase the business outcome across the globe.

Internet of Things

Internet of Things provides a platform where devices will have built-in connectivity to store and send essential data. The global logistics industry can use this quality of IoT to their advantage and reduce the risk of accidents by curtailing human errors. It results in lesser operational costs and a higher ROI, as the process is streamlined and scalable with very little human intervention.

By deploying IoT systems, logistic professionals can focus on the essential tasks with greater efficiency. Digitization will help the logistics industry to handle labour shortages with a streamlined work process.

Machine Learning and Artificial Intelligence

Both ML and AI go hand-in-hand; nevertheless, there is one stark difference between them. AI is an idea where the machines complete a task in a more human-like or intelligent manner. Whereas, ML is where you direct access of data to the devicesand allow them to create solutions on their own.

With AI and ML becoming easily accessible, the logistics industry has started using them and has seen a considerable decrease in the production cost and an increase in operational efficiency. With increased operational efficiency, you can cater the customer needs in a better way and build a proficient supply chain.

AI and ML as a team will work in tandem and help the organization to prevent mismanagement of resources and optimize their work patterns. In addition to this with Predictive Analysis, the companies can get an accurate idea of the demand patterns of the customers and thus can regulate their business functions accordingly.


Blockchain is a distributed database containing blocks of information, and thus this technology becomes ideal for shipments that require strict certifications and standards. The companies can eliminate the traditional third-party compliance checks as all the information is digitized and protected in a synchronized manner with blockchain.

Adapting blockchain in their logistics process will help the organizations to become more efficient as it has real-time tracking and the large, hardcopy documents are replaced by secured digital footprints that are very easy to manage. Blockchain will provide the highest degree of accuracy and multiple ways to enter the data through an approved source.

To a brighter future

The global logistics industry will be empowered massively with digitization. The companies can effectively apply new strategies and will continue to increase their efficiency. The automated decision-making process and a smooth human-machine interaction will help the companies in tackling unprecedented problems and provide more customer-centric services.

Ashish Parmar

Ashish Parmar is the CEO of Prismetric. He is an enthusiastic entrepreneur who is interested in discussing new app ideas and rich gadget tricks and trends. He admires and readily embraces signature tech business styles. He enjoys learning modern app crafting methods and exploring smart technologies and is passionate about writing his thoughts, too. Inventions related to mobile and software technology…

Comments (0)

Add a Comment

This thread has been closed from taking new comments.

Editorial: +44 (0)1892 536363
Publisher: +44 (0)208 440 0372
Subscribe FREE to the weekly E-newsletter