Sumit Sharma, co-founder of Delhi-based tech-logistics company GoBOLT, suggests why new digital technologies are vital for the logistics industry
June 29 2017: India is turning rapidly towards digitalization: use of digital technologies to change a business model and provide new revenue and value producing opportunities; we can say it is the process of digitally transforming a business.
With the help of digitization we can find everything within our house with just one click -- as smartphones and tablets have now become a household name. In recent years people have got the most comfort from the fact that now they need not to stand in queue for hours, they can do their work at home and just sit back and relax.|
The effect of digitalization can be seen in every sector because it is a revolutionary change which is considered as a remarkable item. It has helped in expanding the reach of product to consumers with the help of smart sensors and communication devices for better ease and accessibility. Its effect can be seen in the logistics sector as well. Change is the new constant. The new methods of data collection and analysis have helped logistics industry to serve consumers with complete satisfaction. It is going to see a drastic change: It is getting more and more shipping orders than earlier. logistics is now being adopted as a third party for its orders by big corporations. With increasing progress in technology, there is a continuous demand for better products and services from consumers. The current customer expectations have increased , demanding reliable delivery times, quality deliveries, real-time tracking, fast returns processing, flexible and personalized services. It has become increasingly important to improve customer satisfaction.
The logistic sector depends on the 7 Rs or Rights: Right Cost, Right Place, Right Product, Right Quality, Right Condition, Right Customer, Right Time. Obviously this aspect of speed and time isn’t new for the logistics and transportation industry. After all, the 7Rs of business logistics go back a long time: the right product/item in the right quantity to the right customer in the right condition at the right place on right time and at right cost, right? Now, if these 7Rs are carefully observed, it can be seen that if any of the above mentioned R is missing, the loss will be irreparable.
The logistics sector has become more flexible, fast and reliable because of new technologies like document scanning, digital signature, RFID, bar code, electronic chips etc. The industry has been transformed by digitally transforming itself since it has started using smart containers, real time weather data feed as well as GPS navigation which helps to track the path of freight and courier. Efficiency, security and safety insurance have been increased because of automated electronic data exchange from ship to ship and ship to shore.
With increasing globalisation, logistics players in India have to face day to day challenges like fulfilling consumer needs and expectations through providing effective services. Technological innovations in logistics processes at different stages have reduced the pressure as young graduates are being hired with quality professional manpower. Adoption and utilization of technology has resulted in increased ability to communicate effectively with customers.
The buzz about 'Make in India’ campaign is drawing more investment, creating more employment and e-commerce platforms to provide an online solution for seamless processes from order to invoice in logistics sector. However, the future of the logistics industry is expected to change tremendously with the adoption of new innovations using IT, big data, advanced analytics and machine learning. Logistics providers need to constantly evolve and upgrade their services to match consumer expectations.