Competition is one of the most important parts of economic systems all over the world. Not only does it open a healthy way of income distribution, but it also helps to push the industry forward, encouraging companies to improve their services in order to get ahead of everyone else. In our modern world, the primary way to gain competitive advantage is to somehow implement a new innovative technology into the production.
In this regard, the logistics industry is no different from any other. The times when you could’ve gotten ahead of your competitors by finding better routes or buying faster cars are over. To gain an advantage, you need to implement more of an innovative approach. According to surveys, the most game-changing technologies are much newer and less common. But what competitive advantages can you really get from using all these innovations?
Technologies that are expected to be game-changing for the logistics industry.
1. Improved security
Security is a huge problem for the logistics industry. Especially now there is a lot of interest in increasing surveillance both by physical means and by means of implementing new technology. Blockchain, one of the most popular information technology branches right now, is said to be a major instrument to be used for both cyber (like Guardtime does right now) and physical security.
Blockchain ultimately helps to globalize supply chains and make handling them very accessible. For instance, it allows making bank-independent transactions from any point in the world, which can significantly accelerate the supply chain. Blockchain also provides advanced means for tracking supplies and storing categorized information in a highly-protected decentralized database.
2. Decreased delivery time
With the implementation of automation that allowed reducing the presence of people at different stages of the delivery process, it is obvious that the possibility of human error has been reduced as well. That’s why the employment of these technologies both increases the accuracy of orders and reduces the time needed to process and deliver each separate order.
3. Better customer experience
In the logistics industry, customer experience often feels lacking. It consists of placing an order and waiting for its completion. However, by implementing the Internet of Things (IoT), companies are able to provide a more accurate tracking information, which means that the client can be sure about the location of their package at any point in time. It also ensures that the customer can plan out their day according to the more precise information they receive.
IoT-based systems can help predict equipment failures and avoid many technical errors, they can help assess the quality of various biological products, and, overall, make the logistics more precise and efficient in a bunch of aspects.
4. Clearer process
Making the process automated means that the information about it can be digitized at any point. This allows the company to be transparent about everything that’s going on with the user’s order, which opens a door to a more trusting and understanding relationship between them. Such a relationship has much better chances of growing into a long-lasting cooperation. Provenance is one of the biggest projects that are working on delivering such an experience.
5. Lower cost
It can be concluded that, with all the factors mentioned above, an overall increase in the number of orders due to the improvement in their handling can be achieved with the use of technology. But what about the cost of each order? Well, more effective overall process and the reduction of errors leads to a decrease in the average order handling cost, which means all the more profit for you!
Overall, implementing new technologies is a healthy way of evolution for any industry. However, it can be quite difficult to do unless you’re an expert in these IT branches. With a helping hand from a professional like Artelogic you can benefit from custom logistics software development and be sure the process of implementation will run smoothly.