3 Transformation Opportunities for Business Success in the Logistics 4.0 Era
With the acceleration of digital adoption, logistics will become a key differentiator and game changer
The global logistics industry is undergoing a transformation with the advent of innovative technologies such as autonomous transportation, Internet of Things (IoT), data analytics and blockchain. The rapid growth of the global digital economy and e-commerce industry further fuels supply chain complexity and service requirements.
The increasingly complex and globalized nature of value chains would require new approaches to supply chain management in order to ensure the transparency and seamlessness of information and goods flow from the source to the end customer.
These, in turn, also gave rise to innovations in last-mile delivery such as the use of aerial drones, ground bots and electric urban delivery vehicles, in part to meet the needs of a new generation of digital native consumers.
Historically, traditional logistics model is characterized by issues such as low asset utilization, empty miles and demand-supply mismatch. Today, technology such as IoT has enabled an industry-wide transformation and digitalization, i.e. Logistics 4.0. This is a new era which will see greater transparency and connectivity across the entire value chain, thereby minimizing disruptions and associated losses, and maximizes efficiency and throughput by improving operational KPIs.
As logistics and supply chains evolve, they are moving from a purely functional, physical system to a global and interconnected network of assets, data and processes. This digitalized logistics value chain will comprise different technologies yet linked together seamlessly to produce dynamic, real-time data for businesses.
The next decade will no doubt signal a more rapid transformation of the logistics industry where smart logistics will become a norm and not an exception. Furthermore, the post-pandemic world will see the rise of a new era of data intelligence to bring about greater adaptability and resilience in global logistics and supply chain.
Transformation Opportunities in the New Era
To unify, standardize and provide a true end-to-end service, logistics platforms need to facilitate the creation of an automated, asset light and highly personalized service. This will transform previously fragmented and inconvenient logistics systems into a more integrated and efficient network.
The goal here is to devise new ways to effectively plan, control, monitor and implement information and the movement of goods in Logistics 4.0. With the acceleration of digital adoption in the logistics and supply chain industry, we anticipate 3 key transformation opportunities in the areas of global forwarding, last mile service and supply chain:
- Global shipments of goods need to achieve lower cost, faster speed, and greater transparency to uphold a positive customer experience and support business confidence in post-pandemic world. The global forwarding and transportation industry will embrace data intelligence to promote greater operational efficiency and seamless connectivity which will facilitate business continuity even during periods of disruptions.
- In the area of last mile service, there will be greater adoption of contactless pickup and establishment of community facilities. Innovation in order fulfillment, delivery models, and value-added services is expected to reshape the last mile delivery segment.
- The entire supply chain will also experience greater shift towards digital adoption to develop a connected supply chain and maintain competitiveness. Data will play a key role in predictive analytics, helping businesses to better estimate consumer demand ahead of massive sale events or peak seasons. Thereby it will ensure sufficient supply and warehouse storage to facilitate a more seamless order fulfillment and higher supply chain efficiency.
Logistics as a Key Differentiator for Businesses
Smart logistics and supply chain will increasingly serve as a game changer and key differentiator from which businesses and consumers will gain benefits of higher operational efficiency, better customer experience and easier one-stop solution.
Today, more and more logistics industry players across the value chain are prioritizing operational efficiencies by investing in technology adoption. Some global freight forwarders are providing innovative online solution offerings in freight matching, custom brokerage, and transportation management, which are expected to significantly reduce operational costs.
Consumers, in the same thread, will enjoy better experience with faster transit time, improved visibility, better reverse logistics and greater access to a diverse range of products from all over the world.
All of the above will culminate in a one-stop solution from first mile pickup, CFS warehouse, export custom service, line-haul transportation, import custom service, regional trucking transportation, warehousing, order fulfillment, to last mile delivery to millions of end users in multiple countries.
With the digital transformation of logistics industry, businesses will be able to optimize their operational efficiency to reduce cost while at the same time, improving customer experience.