Third Wave defined digitisation in logistics as “an automation of processes based on digital information formats. It is replication of real (physical) world in a digital format.” Digitisation is essential cornerstone capability that enables logistics to deliver its true potential. With rapid development of automation, digitisation in supply chain and logistics industry has become much more important than ever.
In today’s industry 4.0, digitised logistic is undergoing continuous change. Quoted from Third Wave, “Shrewd investment in digitalisation holds promise to leapfrog an organization over its competitors, enabling unimagined value to customers while streamlining response times, cutting through complexity, and dramatically reducing assets needed to carry operations.” All in all, this means that lacking in digitisation knowledge could downgrade your logistics performance.
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Moreover, DHL study on digitisation which is focused on digital revolution revealed that Logistics Trend Radar is the new innovation for dynamic logistic movement. As cited in the study, “Key societal, economic, and technological drivers on logistics over the next five to ten years. Yet, Trend Radar can predict great potential as it opens up many business models, possibilities for more efficiency in all process, and real opportunities for improved customer service.” According to the report, there are 4 important key factors that will give huge contribution in innovative logistic strength.
Factor #1 Customer orientation
Faster and more convenient logistics solution are desired to lead to Omni channel solutions, especially in all B2B market. Also, the increase time and temperature-critical deliveries to customers requires new innovations in storage and packaging. Thus, last mile trend towards connected life calls for integration of logistics into smart home environments.
Factor #2 Sustainability
Green(ware)house has been debated over years. Today, logistics industry is expected to bring more sustainability into the world. As cited in DHL’s study, “greener design of logistics processed is a prerequisite for functioning of global supply chain, both during last mile and en route.” Additionally, far-reaching agreements of cities, governments, and companies to reduce pollutant emissions and waste prevention is coming in the future.
Factor #3 Technology
Today’s logistics have already adopted artificial intelligence and robotics to their warehouse to operate mundane and repetitive jobs. They are also crucial fields in terms of efficiency, speed, and value for money. Moreover, experts are relying more on blockchain technology. However, acceptance within industry can become a hurdle to overcome.
Factor #4 Humanity
No personnel = no logistics. Although trends of robotics, automation, and software automation are significantly changing field work, logistics still need human touch to operate the system. Digital working concepts, for example, are necessary in order to bind current generation to logistics sector on a lasting basis and to facilitate daily work of other older employees.
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