We hear about technologies like artificial intelligence (AI), robotic process automation (RPA), and blockchain every day!
What solutions do they bring to the table?
1. Error reduction
2. Enhanced productivity
3. Shipment location tracking
4. Time and cost-efficiency
Let's look at how digitalization in logistics works in detail.
Artificial intelligence (AI)
Artificial intelligence already offers many effective solutions to a variety of industries, and can hugely benefit the traditionally conservative logistics sector. Artificial intelligence enables superior customer service. With the growth of e-commerce businesses like AliExpress or Amazon, consumers are relying on online orders more than ever. However, due to negative experiences with logistics companies on the Internet, trust in online shopping rapidly fell.
The implementation of digital solutions for logistics like AI helps solve these problems by offering digital solutions to customers like:
1. Package tracking
2. Vehicle tracking
3. Delivery time tracking
4. Filling in of invoices and web forms
5. Route optimization
6. Cost reduction
Furthermore, almost all logistics companies use cloud-based databases which allow them to access data about customers and orders within seconds. Digital logistics companies can now more effectively manage their day-to-day operations, including availability, costs, flow and resource monitoring, transportation processes, staffing, and suppliers, to ensure flawless processes and enhanced customer service.
Robotic Process Automation (RPA)
Robotic Process Automation (RPA) provides many benefits to digital supply chain management, such as:
1. Reduced costs.
Employers don't need to spend extra money on the hiring and training of new employees.
2. Reduction of human error.
People can easily burnout and start making mistakes while performing tedious and monotonous tasks.
3. Process acceleration.
Robots can perform time-consuming and repetitive tasks without becoming bored and exhausted like people do.
Safety is an incredibly important issue, and the introduction of RPA has had a significant impact on improving labor safety in the digital logistics industry. Robotic process automation reduces the risk of injury at the operational level in the supply chain warehouse by keeping workers safe from hazardous work procedures. For instance, a robot for packaging and stacking pallets can eliminate the risk of injury when performing industrial tasks like stacking heavy boxes on pallets.
When people hear about blockchain, the first thought that comes to their mind is cryptocurrency, coins, tokens, and mining, but the main idea is much wider and deeper. Multiple industries have adapted this technology to their needs ever since it appeared on the market, and the sight of blockchain in logistics is now quite common.
The main benefits of integrating blockchain in logistics are:
1. Elimination of data tampering. Once a document is entered once, such as a bill of lading, receipt, or certificate of conformity, it remains in the system in its original form forever
2. Elimination of unnecessary intermediaries
3. Prevention of illegal goods, mislabeling, and other fraud attempts
4. Time-effectiveness. Blockchain reduces the time for document management by an order of magnitude, quickly finding the link of transportation where a mistake was made to reduce business costs.