How To Use Digital Technologies To Transform Transportation And Logistics

Digital technologies are reshaping transportation and logistics across the entire supply chain. For an enterprise business, adopting tools like route optimization software is essential to improve delivery speed, reduce costs, and streamline operations. From logistics management systems to last mile optimized route planning, digitalization eliminates the inefficiencies of manual processes and tools like Google Maps. As the logistics industry grows more complex, digital transformation is no longer optional. It’s a competitive advantage.

Learn about digital logistics management systems, transportation management technologies, methods & algorithms for processing, analysis and use of logistics activity-related data.

 

What Technologies Are Used In Logistics

Modern logistics technologies are divided into the following groups:

  • Digital platforms and services are online marketplaces that bring together supply and demand for logistics services, providing transparency, convenience and saving time and money for clients and providers.
  • Digital logistics management systems are software solutions that automate and optimize the processes of planning, monitoring, analyzing and controlling logistics operations.
  • Digital transportation management technologies improve the safety, efficiency and environmental friendliness of vehicles.
  • Digital data technologies are methods and algorithms that enable the collection, storage as well as the processing, analysis and use of large amounts of data related to logistics activities. Examples of such technologies: Big Data, Cloud Computing, Machine Learning, Artificial Intelligence, Blockchain, etc.

 

What Challenges Will Digitalization Of Logistics Help To Solve

Digital technologies in logistics help to solve many problems related to improving the quality and efficiency of logistics processes. Here are some of them:

  • Cost reduction – digitalization of logistics saves on fuel, labor, storage space, insurance and other related costs.
  • Increased speed – digitalization enables faster delivery routes, unloading, loading, customs clearance and other logistics-related operations. For example, according to McKinsey, digitalization could increase the speed of logistics by 30% by 2030.
  • Quality improvement – digitalization allows for greater accuracy, reliability, safety and customer satisfaction in the logistics process. For example, according to Deloitte, digitalization could improve logistics quality by 25% by 2030.
  • Empowerment – digitalization helps to expand the geography, range, spectrum and flexibility of logistics services. For example, according to the World Economic Forum, digitalization could expand logistics capabilities by 40% by 2030.

 

Barriers To Digitalization

It is a complex process that faces several barriers. Here are some of them:

  • Lack of funding – digitalization requires significant investment in the development, implementation and support of digital technologies. However, not all participants in the transportation and logistics process have sufficient resources to do so.
  • Lack of staffing – the service requires experienced workers in digital, analytics, management and other areas. However, not all participants in the transportation and logistics process have access to such personnel.
  • Lack of standardization – digitalization requires a common format, protocol and rules for data exchange between different participants in the transport and logistics process. However, not all participants in the transportation and logistics process use the same or compatible systems.
  • Lack of regulation – the service requires adequate legal and regulatory regulation to ensure the legality, safety and responsibility of all participants in the transportation and logistics process. However, not all aspects of digitalization are taken into account or regulated by legislation.

Overcoming these barriers requires joint action by stakeholders: government, business, science, education and society.

The digitalization of transport and logistics is a global trend that has a great impact on the development of the industry and society. Such technologies provide solutions to many problems related to improving the quality of logistics processes. Digital logistics creates opportunities for governments, businesses, and customers, but also faces significant barriers. To realize its potential and lead in the global market, stakeholders must act together while continuously developing and implementing new technologies.

 

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About author: Alex Yasko

Alex Yasko is the Go-to-Market Product Manager and Information Architecture Manager at Route4Me. With thousands of hours of experience, Alex specializes in breaking down complex last-mile optimization and routing scenarios into simple, actionable instructions, helping last-mile businesses streamline their operations effortlessly.

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About Route4Me

Route4Me has over 40,000 customers globally. Route4Me's Android and iPhone mobile apps have been downloaded over 2 million times since 2009. Extremely easy-to-use, Route4Me's apps create optimized routes, synchronize routes to mobile devices, enable communication with drivers and customers, offer turn-by-turn directions, delivery confirmation, and more. Behind the scenes, Route4Me's operational optimization platform combines high-performance algorithms with data science, machine learning, and big data to plan, optimize, and analyze routes of almost any size in real-time.