At a time when industries across all sectors are striving to adapt to digital advancement, logistics companies worldwide are gradually recognizing the need to embrace digital transformation. The shift towards digitization is now more evident than ever, especially after the pandemic when the industry learnt the lessons from the global supply chain disruption, due to shortage of equipment, labour, port congestion and several other factors. In the last few years, the industry has undergone a significant transformation through digitization, leveraging advanced technologies to streamline operations, enhance efficiency, and respond to the demands of an increasingly interconnected world. In this context, we are publishing an excerpt from a research by Globalia’s media partner Cargowise which explores the importance of embracing a holistic approach to digital transformation in our industry, and the critical factors necessary to drive its successful implementation.
Embracing the technological revolution- How logistics companies are investing
The findings of Cargowise indicate a widespread acknowledgement of the growing necessity for enhanced digital capabilities, and in recent years, the majority of logistics enterprises have prioritized increased technological investments. This heightened focus aims to elevate productivity and efficiency throughout their operations. Evidently, IT investment is concentrated on areas that directly impact productivity, efficiency, and overall effectiveness. As highlighted in a survey conducted by IATA, the primary current concerns for freight forwarders are digitization and cost reduction, while a significant portion of shipping companies are channelling investments towards sustainable operational practices.
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TMS are coming up as the most popular logistics technology
The Cargowise research demonstrates that the logistics industry is primarily investing in supply chain management systems, also known as Transportation Management Systems (TMS). A significant majority of participants, representing 64% of the respondents, are channeling their investments into this technology.
In this context, it needs to be said that as one of the leading freight forwarders networks of our time, Globalia Logistics Network has invested in the creation and development of a TMS called FreightViewer that allows for instant quote generation for the members. It is a state-of-the-art freight rate management software that helps to strengthen the digital infrastructure of the network members. FreightViewer takes the Globalia members one step ahead in the process of digitization. This is a free and member-exclusive tool that automates the sales process, enhances visibility, and improves the client experience. Most importantly, it provides the members with a standardized platform for sending/requesting quotations, sharing documents, and even offering rates online to partners who don’t belong to the network.
With a strong recognition of the power of digitization in streamlining administrative processes, nearly 48% of the participants in the Cargowise study have invested in digital documentation technology. By replacing manual paperwork and cumbersome documentation with more efficient digital systems, logistics organizations can not only reduce costs, but also streamline workflows, reduce errors, and enable a more seamless information exchange. Globalia’s, TMS, FreightViewer simplifies your everyday office tasks and allows for better client servicing by letting you send an instant and accurate quotation within a minutes’ time or setting a personlaized website to offer online rates.
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Investments in other areas of digitization
The pursuit of heightened efficiency and productivity has evidently driven 39% of participants to commit to investing in warehouse automation technologies. The integration of automated systems and intelligent inventory management solutions enables logistics businesses to streamline warehouse operations, cut down on labour costs, mitigate errors, and expedite order fulfilment. This, in turn, results in an enhanced level of customer service. Moving beyond the primary focus areas, an emerging trend is the investment in data analysis for inventory management, with 35% of companies recognizing its significance and allocating resources accordingly.
However, their research reveals that only 23% of respondents have made investments in cybersecurity, despite the digital interconnectivity of global supply chains and the ever-present threat of cyber attacks. Finally, regardless of the widespread media attention and industry buzz surrounding artificial intelligence (AI) and augmented reality (AR), the research reveals that only a small percentage of logistics companies are currently investing in these technologies.
The opportunities created by digital transformation for logistics companies
Greater visibility
By leveraging advanced technologies for greater visibility, organizations can improve operational efficiency. Real-time data analytics and insights enable more informed decision-making, proactive problem-solving, and agile responses to changing market dynamics. For instance, with FreightViewer your fellow members and even their clients can view your uploaded rates on the platform. Therefore, this TMS gives forwarders the opportunity to offer freight rates to over 217 logistics partners and potential customers. Moreover, it allows freight forwarders like you to access the rates uploaded by your fellow members at any time thereby generating a unique rate-sharing process where data is exchanged end-to-end, from the carrier to the customer. This increases the visibility of the agent and even allows them to get new sales leads without any investment on your part.
Less repetitive tasks
Embracing heightened automation empowers logistics companies to diminish repetitive tasks, streamline workflows, and optimize resource allocation. The automation of manual processes like data entry, inventory management, and order fulfilment enables businesses to slash errors, save time, and allocate resources with greater precision. This not only boosts overall productivity but also allows employees to concentrate on tasks of higher value and strategic initiatives.
Quote generation for example is a tedious manual task that takes a few days to complete. A quote generation platform like FreightViewer can allow freight forwarders to send instant door-to-door quotations thus freeing up their time to focus on more valuable tasks that will bring in new customers.you can
Improved collaboration
The transformative power of digital technologies extends beyond individual organizations. By embracing digital transformation, the entire supply chain can benefit from improved collaboration and coordination. Interconnected systems, deep integrations and straight-through data processing enables stakeholders to work together, fostering teamwork and ultimately enhancing customer satisfaction and business growth.
Best practices for managing change while implementing digitization
The research focused also on the actions that companies should undertake while implementing new technologies and altering processes. Successful digital transformation extends beyond the adoption of cutting-edge technology; it necessitates a comprehensive change management strategy encompassing communication, education, and updated procedures to foster online tool utilization among employees. Simply put, this is a holistic approach that necessitates employee training. This will ensure that the workforce is comfortable with the digital tools and know how to use it. Around 77% of respondents emphasized the importance of comprehensive training to ensure a smooth transition. Employee education can help companies to mitigate resistance to change and empower their workforce to embrace new processes and technologies.
This is precisely why Globalia Logistics Network has teamed up with two globally recognized course providers- Canadian International Freight Forwarders Association (CIFFA) and Container xChange and launched two online freight forwarding courses that would allow members to train their workforce in the up-and-coming logistics trends and technologies.
Wrapping up
Digital transformation is a continuous journey necessitating learning and adaptation on the part of the freight forwarders. The Cargowise research concludes that workforce resistance to change is a hindrance in implementing automation. Overcoming this resistance requires a focus on empowering employees with the skills and knowledge to embrace new technologies and processes. Logistics companies should prioritize continuous learning and development initiatives for their workforce. Investments in online earning, certifications, and upskilling opportunities, can help independent freight forwarders to equip their employees with the knowledge and skills needed to navigate digital transformation effectively. It is only by means of these actions that logistics companies can embrace digital transformation, unlock the full potential of technological advancements, drive operational excellence, and stay ahead in the rapidly evolving logistics landscape.