The logistics sector is undergoing a powerful transformation fueled by the rise of digitalization. Digital logistics solutions drive new efficiency and innovative approaches to moving, tracking, and managing goods. In today’s article, we explore the concept of digital logistics, highlighting its advantages, challenges, and practical steps for implementing digital transformation in your logistics operations.
What is digital logistics?
By integrating intelligent management systems, digital logistics enables real-time cargo tracking across all transport stages and automates document processing (including transport documents). Additionally, it facilitates faster customs clearance for cross-border shipments.
Any logistics task that is still reliant on manual paperwork and repetitive actions holds the potential for digitalization. Implementing digital solutions can boost efficiency across a business’s entire supply chain, impacting areas such as:
- Inventory Management: Smarter stock control through digital tools.
- Transportation Management: Optimized routes and enhanced transport oversight.
- Warehouse Systems (WMS): Streamlined operations with warehouse automation.
- Supply Chain Analytics: Data-driven forecasting and insights.
- Customer Updates and Real-Time Tracking: Instant updates and shipment visibility.
Why is digital logistics on the rise?
Digital logistics began making strides in the late 20th century with the increased accessibility and affordability of digital tools like computers, software, and data networks. However, it truly surged with the rapid growth of eCommerce and dropshipping as businesses moved to online-only models.
Additionally, the COVID-19 pandemic accelerated this trend, driving traditional retailers online and underscoring the need for efficient, flexible supply chain solutions. Digital transformation in logistics became essential to manage shifting demand and streamline operations in a rapidly changing market.
How does digitalization compare to traditional logistics?
Traditional logistics typically rely on analog tools such as spreadsheets, clipboards, and paper checklists. Conversely, digital logistics utilizes technologies like web-based platforms, mobile apps, and system integration to streamline information flow.
The key differences between the two include:
- Shipment trace
- Traditional:Progress is tracked manually by periodic updates requiring physical checks.
- Digital:Real-time tracking is available, providing instant updates on shipment status.
- Data and document sharing
- Traditional:Documents are often printed, requiring paper, ink, and physical storage, with a risk of losing files in transit.
- Digital:Documents are shared digitally via a centralized platform, making them easily accessible across the supply chain.
- Reporting
- Traditional:Reports are manually created and stored physically, which can be time-consuming and prone to errors.
- Digital:Reports are auto-generated, stored securely in digital format, and can be accessed at any time, improving efficiency and accuracy.
In short, digital logistics is a game-changer, revolutionizing logistics operations management by improving visibility, efficiency, and collaboration across the entire process.
Case studies of successful logistics transformation
Airsupply, a leading freight forwarder in China, has embraced digital logistics to streamline operations and enhance service delivery.
One of the company’s key strategies has been integrating digital logistics platforms to enable real-time tracking, data analytics, and automation across its logistics network. By adopting these technologies, Airsupply can optimize flight scheduling, cargo handling, and inventory management.
For example, Airsupply deployed advanced tracking systems that allow customers and logistics teams to monitor cargo movements in real time, ensuring transparency and minimizing delays. Additionally, the company has implemented automation in its warehousing and freight management processes, reducing human error and speeding up cargo handling.
Amazon has been at the forefront of logistics transformation, revolutionizing the industry with its innovative use of digital logistics and automation. By embracing digital transformation in logistics, Amazon has optimized its operations, creating a seamless and efficient supply chain that enhances customer satisfaction.
A key area of Amazon’s success is warehouse management. By integrating advanced logistics automation systems and digital logistics platforms, Amazon has transformed its fulfillment centers into highly efficient hubs. The deployment of over 500,000 mobile robots has significantly improved inventory management, reduced delivery times, and accelerated order processing.
Transitioning to digital: Airsupply makes it easy
Switching from traditional to digital logistics can be a challenge, especially when doing it alone.
If you manage your fulfillment logistics, you should choose a digital logistics solution and train your team to use it effectively—a task that’s no small feat if you want to see meaningful results.
With Airsupply, the transition to digital logistics is effortless. Our tech-driven platform lets you enjoy the benefits of digital transformation in logistics without the hassle of selection, integration, or training.
