While digitization has overtaken the core processes of several industries, few of them have managed to stay traditional in their operations for longer than others. The Freight & Logistics industry is one such area that has involved physical management, and hence used old-fashioned ways of supply and management for the longest time. The data and management part of these operations, however, have been subject to some technological advances, and tech-led innovations are paving the way for the same.
The traditional model of operations for the logistics and freight industry has surely been disrupted by new technologies and innovative mechanisms of managing and efficiently running the industry. With the old-fashioned databases, complex management protocols, and redundant IT systems in use for years now, new technological interventions have disrupted this system to bring in more agility, efficiency, and improved communications for freight and logistics companies.
While these can be considered changes for the larger good, here are some prominent areas where tech-led innovations are disrupting the Freights & Logistics industry:
Logistics Data Management and Availability
With large amounts of data and analysis being involved with the central process of Freight & Logistics, technology can play an important role in streamlining the process. The drawbacks of the traditional system can be seen in the lack of real-time updates for data, route optimizations, and delivery tracking methods which can be bridged by technology. The shareability and availability of this logistical data for all concerned parties are what truly make the system efficient. These provisions, along with the inclusion of real-time analysis, AI-based interventions, and IoT-based operatives, can further enhance the system for any Freight & Logistics company.
New ways to Implement Physical Transport
While data and software-based innovations have already been adopted by several companies, the actual methods and protocol for physical transport remain old-school. While the innovations in this sector are yet to be publicly experienced, the use of IoT devices, driverless vehicles, wearable devices, drones, and other tech innovations can change the way transportation is implemented and reduce fatigue in the system. These innovations to carry out the actual groundwork, however, they seem to threaten employment in the Freight & Logistics sector, which is a reservation that many have had with technological interventions in general. As of now, some manual supervision is expected, and technology intervention seems only to be a facilitator in the process.
Robust Financial and Accounts Management
The financial management, invoicing, and resources allocation and management in the Freight & Logistics industry has also remained fairly traditional with little use of technology in aiding the resource allocation process. Artificial intelligence and big data analytics can be of great significance in analyzing the business model, routes, and locations where the maximum profits are incurred. Companies can consequently use these to strategize finances and resources for the management of these areas to be able to take more business load and operate efficiently. Even basic account management and resource allocation in the Freight & Logistics industry can be highly improved with digitization, thus, saving manpower for the more significant operations within the organization.
Use of Digital Platforms for customer-client interactions
The channel for communications forms an important sector for any business in general, and the Freight & Logistics sector is no exception. One of the biggest disruptions in this industry with technological advancements is owing to the use of digital platforms for the management of customers, warehousing, and even expense management and transactions. Here, businesses are forced to plunge into the digital domain completely with adequate marketing, advertising, and customer relationship management as the location-based monopoly is highly diminished with the use of digital platforms. It is not enough to just have an app for your business. You also need to show customers why yours is better than tens of others in the competition. On the brighter side, the use of digital platforms makes the process cost-efficient and more streamlined for the company in the longer run.
Challenges triggered by tech-led disruptions
Despite the multitude of benefits that a technologically advanced system has to offer, there are a series of challenges that members of the logistics and transportation industry face, owing to the existing systems that offer friction with new adaptations. Following a logical analysis of these industry challenges can help embrace the benefits that technology can offer in the longer run.
- In the digital era, many Freight & Logistics companies have their reservations about scrapping out an entire running system to replace it with a digital framework, and rightly so. While many of them are used to maintaining their operations on isolated systems, some even use the age-old manual methods of operations. With customer interactions being digital, along with the expanded market, each company can start out with adapting to the changes that are essential for their operatives. If not all, a partial switch to digital data management can help bring an element of transparency and real-time updates to a system that would otherwise be redundant.
- Some companies also feel that committing to a completely digitized system can be a breach on their privacies with too many external parties privy to their operations. Others might not want to take the plunge to make investments to replace the existing system with an efficient digitized one. In the end, businesses also need to consider that steering away from technologically adept and transparent systems will to some extent, alienate their company and reduce the metric of trust with customers. The modern-day customer who is used to tracking each shipment of even an online order looks for that element of convenience with Freight & Logistics as well. Thus, the best bet is to adapt to tech-led innovations in ways best suited for the specific organization.
- Last but not least, financial management poses a great challenge for companies who are hesitant to invest in new payment machinery for their business. Even investments for other technological advancements involve risks and difficulties depending on the stature of the business in general. While some would call it wise for companies to tread slowly here, one can always start out with taking actions on the trends and areas that would be most impactful while keeping their finances in order.
A game plan of priority lists can be a great way of coming up with which developments can be introduced to the business model without a drastic impact on the cash flow. Digitization definitely brings in the profits of convenience, structure, and even financial profits once a smooth-running system is in place. Leading logistics app development companies like TechAhead understand the relevance of technologically innovating the Freight & Logistics business model and develop applications suited to serve different business aspects. After all, embracing technology is the ultimate solution for the Freight & Logistics industry to revolutionize their business, as their competition out there is surely not waiting to make this shift!