Technology advances have changed how the world does business and has had an impact on logistics in areas of shipment, cargo management, documentation, and payments. The logistics industry is a competitive landscape with many businesses entering the industry. An increase in global population has been reciprocated with an increase in the volume of goods shipped. This makes it difficult for a company to sustain orders using document and paper-based shipments. Technology can help simplify the logistics industry and help the company operate more efficiently. It allows companies more visibility and control over the inventory and reduces operational costs. This paper looks at technology within logistics and the benefits of integrating it in operations.
Technology is a competitive advantage in logistics to help deal with changing customer logistics. It allows for greater efficiency in the logistics by helping companies keep up with the changing consumer needs. The most important function of technology within logistics is helping companies deal with several challenges faced with the logistics industry ( Lewis & Talalayevsky, 2000) . Some of the challenges that logistics companies face includes delays in shipment and errors in the cargo information. The logistics industry has been facing a challenge of slow or incorrect orders affecting profits. Slow order processing results in shipping delays and an unsatisfied customer, and can also lead to late dispatch penalties. In the logistics industry, consistent order errors can result in the company experiencing more expenses for restocking and re-shipping ( Lewis & Talalayevsky, 2000) . Companies have been incurring costs due to slow orders and errors, including wasting time and resources to correct these errors.
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Integrating technology within logistics can help to save money on operational costs. Companies can now simplify the process of shipping and consolidate all logistic aspects in one place ( Bhandari, 2014). For example, companies can use technology innovation to organize data and inventory and manage all shipping information. This reduces the risks of errors and increases efficiency, thus saving costs. Logistic companies can reduce the cost of operation and increase the accuracy of orders by integrating technology. Furthermore, technology can help free up resources to focus on innovation and match customer expectations. Automation of the services can ensure tasks that required extended time and resources are reduced.
Technology can help transform logistics and the supply chain with the ever-increasing information overflow. In most cases, consumers value transparency and will do business with a company that assures them of transparency. Technology allows customers to receive notification of their order as well as track the purchases. It also allows the company to respond to order status inquiries fast and with confidence. This ensures that there is customer satisfaction that builds a relationship with clients. Increased transparency within the logistics industry can increase efficiency by ensuring they identify orders as soon as they arrive ( Bhandari, 2014).
Furthermore, technology can ensure greater security measures and practices in logistics operations, allowing companies to provide guarantees regarding the information. The internet of things has opened opportunities for the supply chain by reducing delays and avoiding risks ( Macaulay, Buckalew & Chung, 2015). Internet of things has been a major driver of digital transformation and can be useful in the logistics industry. The technology innovation can be used to detect if the mailbox is empty or full, allowing delivery drivers to have real-time information on where to focus. Building sensors in the cargo ships and collecting to the dispatcher allows for tracking the shipment and allow for more accurate in-transit visibility. This assures customers of cargo safety and increases user experience.
At the same time, the shipment tracking systems allows customers to access and track their orders, which is different from previously where they were left in the dark. The tracking systems enhance user experience while saving time and money for the company. The technology innovation allows customers to monitor and manage their shipments from the comfort of their coaches ( Bhandari, 2014).
In essence, technology is an integral part of logistics that helps companies reduce costs and increase profitability. The logistics industry needs to integrate technology to improve processes and remain competitive. Given the accelerating pace of change in the logistics industry, companies need to transform their processes by integrating technological innovation ( Cross, 2000) . Technology in logistics can help a company do away with these costs and expenses by reducing errors and increasing the speed of processing orders. Faster and accurate orders in the logistics order processing ensure efficiency and more profits for the company.
References
Bhandari, R. (2014). Impact of technology on logistics and supply chain management. IOSR Journal of Business and Management .
Cross, G. J. (2000). How e-business is transforming supply chain management. Journal of Business Strategy , 21 (2), 36-39.
Lewis, I., & Talalayevsky, A. (2000). Third-party logistics: leveraging information technology. Journal of business logistics , 21 (2), 173.
Macaulay, J., Buckalew, L., & Chung, G. (2015). Internet of things in logistics: A collaborative report by DHL and Cisco on implications and use cases for the logistics industry. DHL Trend Research and Cisco Consulting Services .
