Reaching Your Tech Potential

While innovation can be seen throughout the logistics industry, there are some sectors within the industry that still lag behind. For example, in freight forwarding, much of the scheduling of shipments and paperwork is still done by using traditional methods. Because of outdated technology in many sectors, the logistics industry has yet to reach its full potential. According to a survey by Penn State Professor C. John Langley Jr. with the consulting group Capgemini, 75 percent of shippers said the logistics industry could benefit from better technology. 

The good news is that current advances in technology are addressing many of these traditional problems.

The benefits of new technology can be seen across the entire logistics industry, from freight forwarding to 3PL operations. Those companies utilizing these new technologies are leading the pack in bringing the logistics industry into the 21st century. Internet giants like Amazon are investing billions of dollars into supporting their net sales - which was unheard of years ago in both scale and scope. This is an important lesson for smaller players. Below are other benefits that 3PLs and freight forwarders can see by seamlessly incorporating cutting-edge technology into their businesses.

Increased Trade

Each year cargo ships, trucks and aircrafts carry billions of tons of goods from point A to point B all across the world, and with more trade opening up, this number is expected to rise.  The cyclical nature of supply chain activity requires logistics experts to be on their toes and make quick decisions to support their businesses. The combination of technological advancements, increased port organization, the rise of free trade and opening of new markets is going to ensure that this number continues to rise. Companies that successfully implement these new advanced and sophisticated shipping options will be on the forefront of this wave of opportunity. 

Gathering and Sharing

One of the biggest challenges in logistics is data gathering at the shipment and item level, as well as distributing this data to avoid traditional bottlenecks in the supply chain. This is an area that is not advancing at the same rate across all fields in the industry, which also means the opportunities here are tremendous. Some of the technology that many companies still use does not have the ability to gather data from the beginning of the logistics process because of heavy dependency on manual processes. The benefits of strong technology for data gathering can open the doors to a more streamlined and efficient process that propels these sectors into the modern times.

Cost Reduction

Two major benefits for companies that have begun to use the cloud-computing phenomenon are reduced costs and increased efficiency. In addition to offering accessibility, the cloud makes it easier and faster to download files and upload reports, all available on a central network for easy access that is readily available. In fact, many of the initial skeptics are now investing in cloud computing. Having these advanced systems in place helps reduce redundancies that lead to unnecessary costs. Companies can save money and improve service to their clients.

Visibility for the Consumer

The new supply chain software that is available provides visibility, speed and agility to the consumer. Real-time visibility of the supply chain gives consumers the ultimate tool to monitor their shipments during every step of the way. In order to give the clients only the information that is of top importance to them, new software and technology has to continue to put into practice certain data analytics to differentiate and improve the decision-making cycle so that only critical information is relayed. This helps reduce redundancy, which in turn leads to a simplified, faster process and happier clients.

The most important factor to remember when considering logistics technology is customer satisfaction. Logistics is one of the facilitators in improving quality of service, and quality of service is what really determines keeping your clients happy and ensuring you keep their business for the long term. At the end of the day, customers want to ensure that their goods and products arrive on time for a decent price. For many companies customer service has been hard to define, and even harder to measure. Technology allows companies to better monitor satisfaction through direct feedback and face-to-face interaction. We’ve seen the positive impact of technology in our business first-hand, not only in customer service, but also cost and efficiency. Decreased cost and increased efficiency has led to positive results that are continuing to propel our industry forward into the 21st century. 

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