Imagine sitting and waiting for an order to arrive. An order placed weeks ago. Still there is no available information when the same can be expected. The details mentioned simply state “delivery in 6 to 8 weeks”. Thankfully this is no longer the case.

Today we live in a time where digital business is a reality. Digital technologies have changed and disrupted most sectors and logistics companies are no exception. The old rules of logistics still apply but the stakes are higher now more than ever.
The digital wave sweeping the world has made it possible to transform businesses, their organizational processes, activities, systems and models to fully leverage the change and opportunities of a mix of digital technologies and their impact across society. 
Digital transformation is not necessarily about digital technology, but about the fact that this technology allows people to solve traditional problems digitally. Whether it is a distributor, customer, firms, retailer and even a middle man in the supply chain, everyone is waiting for something.

Can Cargo Logistics Go Digital?
Globalization has made it possible for parties all around the world to connect and get items manufactured and delivered anywhere worldwide. Usually the longer the waiting time, the more resources, money and even reputation gets affected when the provider is delayed.

​Products and shipments need to be faster, more interconnected and have a more integrated processes while receiving data from several sources. Businesses need to speed up delivery to please the end customer, intermediaries, and lower costs while staying ahead of the competition.
Most companies now focus on speed while trying to take control of the supply chain or reduce the mediators to hasten the process. Digital technology enables companies to realize and integrate aspects of optimization and efficiency with speed for success and to offer a competitive advantage.

Benefits of Digital Transformation in Cargo Logistics
According to Oliver Wyman, a transport and logistics analyst, transport and logistics companies have increased revenues yet reduced profits and in order to turn this around they need to use technology to standardize and streamline their processes while developing innovative solutions.
Cargo logistics is a broad field and there are several areas which can benefit from digitization. Given below are a few key benefits of using digital technology in cargo logistics:

Increase Profitability and Improve Operations
Digital technology allows companies to boost profitability by improving daily operations. This is done by using digitization to create customer-specific products with more precision. A higher level of automation is used which includes database automation.
For example, automated load building and optimization of the inbound and outbound cargo movement reduces waste and speeds up the process and leads to improved fleet management.
The volatile and competitive environment seen today leaves little room for error and usually profit margins are slim. In such a scenario, removing supply chain inefficiencies and providing a seamless connection between stakeholders throughout the supply chain would be an added bonus.
For example, when we look at the wealth of data logistic companies have, with regards to the movement of goods, patterns related to customer trends, market prediction and insights helps give them a competitive advantage.

Heightened Security and Asset Tracking
Digitally monitoring equipment helps predictive maintenance and technology also helps to fortify the supply chain in many ways. Digital locks like biometrics and multiple authentications help make the inventory secure apart from physical security.
New digitally enabled business models focus on creation of solutions and value added services. For example, real-time tracking of cargo movement through mobile apps also enables rerouting of cargo by avoiding congestion points or any trouble locations, thus minimizing risks and disruptions.
Digitization also reduces paper work, which usually slows down the process. Locating and checking the status of deliveries becomes easier when paper-based proof of delivery is now digitized. 

Asset tracking is one of the applications where the internet of things have been present for a while, as part of end-to-end inventory and asset management solutions. Combining sensors, connected devices, big data analytics and cloud technologies has added the possibility of tracking the cargo.
For example, apart from simply tracking the cargo, fleet, crates and shipment, information can be gathered regarding the condition of any item including the vehicles to take necessary decisions regarding maintenance as needed.

Customer Satisfaction
A digital front provides the customer a one-stop-shop experience and improves internal operational visibility by automating previously manual processes. Offering end-to-end services, real-time updates and augmented reality can further elevate operational efficiencies and increase customer satisfaction.
Clients expect everything instantly. Nobody waits for weeks anymore for any product delivery. Customers want speed and have increased expectations and the transport industry is being challenged to meet these real-time demands. For example, Amazon Prime offers same day delivery for any products.
Companies which proactively transform their core operations improve their operational efficiency and have greater control over their cargo which enables the delivery with faster cycle times’ and decrease the response time to customer queries, thus enhancing customer gratification.

Competitive Advantage
Efficiency and time have always been important factors in cargo logistics. Real-time economy evolution, if used correctly by companies, will give an added competitive advantage. Speed and timing is a customer expectation, which has risen exponentially with the changing times and now it is an important driver to give the company a competitive advantage. For example, Amazon Prime Air is using drones to make deliveries in less than 30 minutes.
Apart from the latest technology, data and analytics are key aspects to speed up the process, offer visibility, digitize value chains and develop new business models. The information gained from the data analysis can help companies predict trends and give them an edge over competitors. Essentially, the company needs to be digitally ready in order to successfully transform.  

In a Nutshell

In order to benefit from the transformation, businesses would need to develop new models, digitize core operations and build a new digital foundation. As the new business models gain traction over the long term,it is believed that digital capabilities will open up tremendous opportunities to win in the market place.


Digital capabilities and information are excellent keys, for companies, to help close the existing gaps while transforming the core operations for better customer engagement and new business prospects which help increasing profits and dealing with problems facing the industry.
Digitization is still considered a big challenge in the transport and logistics industry and yet there is ample room to make the most of the processes, capture the necessary information and speed up the process to enhance transparency while increasing agility as well.
If you would like to know more about how digital transformation can benefit a cargo logistics business, you can contact the App Scoop mobile app developers:  

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