Innovation

Digital transformation in the logistics sector: the 5 keys to achieving digital success

Digital transformation in the logistics sector: the 5 keys to achieving digital success

If you're still one of the few laggards resisting digital transformation, you need to read this article. Learn about the path to logistical success

The profile of new users in the growing digital era stimulates the fact that companies are being pushed towards digital transformation (also known as logistics 4.0), in order to adapt their businesses to the new social, business and technological reality. In this way, users have adopted digital culture in their environment thanks to the incorporation of new tools, which often allow greater speed, efficiency and even user autonomy.

For all these reasons, most companies in practically any sector have already begun to adapt to this new era. This transformation triggers new business opportunities, revenues and even increased efficiency. In this way, all those companies that are successfully participating in the digital transformation process will be better positioned in the market given the competitive advantages compared to other non-digitized companies.

Transformación Digital

How to apply digital transformation strategies in logistics

Below we show you what are the most important aspects for proper business digitalization in logistics. All initiatives must take into account the particular situation of each company considering the difficulties it faces, the opportunities it has in its sector and the objectives it sets itself. Therefore, it is advisable to go step by step:

Strategy: it is very important that the company's strategy is aligned with the challenges of digitalization. Digitalization can be a very important lever in the strategy because if you only invest in technology without clear guidance, the result is usually not as expected.

Starting point and objectives: it is necessary to carry out a prior analysis to assess the current state of the areas most affected in the company due to the imminent digitalization.

Partida Budgetary for digitalization: the company's internal procedures or bureaucratisms should not be an impediment to making the investments in technology necessary for digital transformation. One of the pillars of digitalization lies in the simplification and automation of many processes, which is why it is often welcome.

Talent 4.0: it is essential to bet and invest in those employees who have specialized training in supply chain management, in addition to also having advanced skills in software and digitalization.

Metrics and KPIs: it is essential to analyze each stage and measure its results (KPI) in order to make the best decisions that increase the efficiency of our company.

LEAN method: Prototype, measure, and iterate. It is necessary not to approach the project in a very ambitious way if the company does not have the human capital with sufficient experience in this type of project. It is preferable to start with small projects that give confidence in the execution and management of change in the company itself.

Technological tools: key factors of logistics 4.0

Once analyzed what are the strategies to be implemented towards logistics 4.0, it is now necessary to know those technological tools and key factors in order to carry it out.

Cloud Computing: Cloud computing technology is a pillar of digital transformation since it allows you to store data online, thus allowing different sectors or departments to share information without the need for a software or storage system.

Management software and systems: The implementation of new technological solutions (software) that help to systematize management will promote the automation of some processes that until now were mostly manual, such as planning delivery routes. Thanks to the use of our tool SmartMonkey Planner efficient route planning is already a reality for many small and large companies, such as the case of Alfil Logistics or Pink Basket, among others. Do you want to know more about the benefits of intelligent route planning? Read the following article and discover the success in Success Story: Alfil Logistics — Alfilxpress.

Big Data: With the incorporation of Big Data, companies have the possibility of being able to work with a large volume of data in a much more strategic and analytical way, thus allowing them to more easily forecast market demands and trends or transport weaknesses and needs, among others.

Internet of Things: It allows the interconnection between the different items in the same system in order to act collaboratively and intelligently. This, within the logistics chain, represents a great benefit already implemented in a large part of the process chain.

Advantages of digital transformation logistics

Automation in logistics processes: Especially in inventory, warehousing and route planning, among other processes.

Extensive data collection across the supply chain: measurable and analyzable

Predictive maintenance based on collected data

Advanced control in all processes and digitized quality system

Management system for digital performance

Bigger and better user experience — end customer

In short, the adaptation of the logistics industry to this new digitalization is crucial for the evolution of the sector, not only because of the threats to those companies that are unable to adapt, but also because of all the competitive advantages that will be obtained by all those companies that know how to take advantage of existing opportunities.

Do you want to know more trends in the logistics market? We recommend that you read the article Green Logistics: discover what it is and how to join the current market trend to learn about the industry's latest complaint.

If you want to be part of the digital transformation and technological advances in logistics, join Planner and reinforce the scalability of your business.

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