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Digital transformation – the key to logistics success

The symbiosis between algorithms and humans will create opportunities to improve the logistics industry.

The logistics industry has changed dramatically over the past 10 years and is during a digital transformation. The driving force for the supply chain to develop is the booming e-commerce, as well as the impact from the Covid-19 pandemic.

From cloud computing, robotics, AI (artificial intelligence) to IoT (Internet of things) … logistics professionals must fully understand the wave of disruptive technologies that promote faster technology development. Even as global e-commerce booms, blockchain continues to be seen as a driver of supply chain and logistics.

A successful business in logistics must depend on reliability. AI always solves the most complex operational challenges such as: Optimizing routes, accurately predicting capacity and demand, intelligent physical automation… The logistics industry is also embracing the arrival of robot workflow automation (RPA).

Ảnh: Ứng dụng AI vào chuyển đổi số logistics giúp các doanh nghiệp tăng lợi thế cạnh tranh. Ảnh: Computer Wissen.

Applying AI to logistics digital transformation helps businesses increase their competitive advantage. Photo: Computer Wissen

AI enables RPA to tackle complex, unstructured data formats and processes. According to a study by logistics trade association MHI, 79% of professionals expect AI to become a core competency of the supply chain by 2022, 88% believe it will help improve risk management and guess.

According to the results of a PwC survey, 37 out of 80 CFOs responded that accelerated automation will be part of their post-Covid-19 strategy. As logistics companies digitize processes, they find transparency and flexibility driving the need for further digital transformation.

On the other hand, thanks to the application of AI in the working process, customers will appreciate the benefits of fast delivery and service quality of that logistics company. These encourage companies to adopt more new technologies to enhance and improve processes.

As digital approaches become more and more central to supply chains and logistics processes, companies are paying more attention to the people side. Digital systems need humans to build, maintain, and improve. Supply chain operations also require close and continuous cooperation between humans and machines.

On the contrary, if not focusing on people, logistics businesses will face many problems. From a shortage of skilled personnel to a complete failure to use new technologies. In the years to come, companies need to adopt a people-centred innovation approach.

Leaders of logistics businesses are focusing on promoting digital thinking, including: Establishing positive cultural norms, standardizing processes and continuously retraining human resources.

The most important thing in the process of digitization is to have a balance between work and human life. The logistics industry and chain of stakeholders should work together to encourage the creation of a connected business environment, with realistic and humane expectations. This will require adopting a new mindset, embracing the benefits of digitalisation, and creating more resilient, sustainable workplaces.

The logistics industry must adapt to the digital transformation era to thrive. Not only because of imminent threats, companies must also do this to increase their competitive advantage, making the most of opportunities.

Source: vnexpress.net