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Digitization in Logistics

The Emerging Need of
Digitization In Logistics & Supply
Chain Post COVID-19
The COVID-19 outbreak brought a lot of things into consideration. From a must-have Risk Assessment Strategy/team to a Business
Continuity Plan, from technology to digital transformation of businesses, and from understanding and being able to differentiate the value
of essential and casual products, we learned a lot.
However, with the imposed lockdown, social distancing measures, and other everyday precautions, many businesses have turned into a
negligible size and importance.
Even businesses such as the ever-increasing and in demand, logistics and supply chain are witnessing business disruption due to COVID-19.
Due to the lockdown and people protecting themselves from the virus, everyone decided to stay put in their home and space to practice
social distancing which consequently increased internet usage, digital platforms, and online shopping with home deliveries.
Not just this, with almost every other company providing work from home to its employees, the usage of digital platforms became a must.
COVID-19 has definitely triggered the growth of digitization in the market and at homes too. This has led other industries that often
worked as per traditional measures to turn to digitization and technology for gaining revenue and bringing the business back to normal.
One such business is the logistics and supply chain business that welcomed digitization with open arms to gain efficiency and effectiveness
in a whole new way.
The whole retail business with logistics and supply chain
faced a lot of issues and problems in its different sectors.
They faced major problems in:
Supply chain management
Customer demand fulfillment
Customer satisfaction
Health & Safety issues
Demand and supply issues
Delivery on time issues
Running out of essential products
These were primary issues faced by the logistics business
along with supply-chain. As many other businesses are
capitalizing during the pandemic because others are merely
waiting for a better way to centralize, it is the right time and
need of the hour for the logistics business to transform itself
digitally in a complete manner.
Digitization brings a whole new perspective of achieving better solutions and providing enhanced services at a quick rate, quick
turnaround, and in less time consuming effortless manner. Technology adoption, on the other hand, has helped multiple businesses in
understanding the changing consumer buying behavior in the wake of Coronavirus and has also helped in rapidly change business
strategies to offer value and satisfaction to its consumers.
Customer interaction became easy with digitization and technology which ultimately helped in providing the best and exact products and
services and taking the business a step ahead in the game.
Business Continuation with Digitization
Digitization is the best way to provide a balance and maintain the
continuity of any business. See how Digitizationc can help retail
businesses in a clear way.
Offers a handy and a comfortable platform for the customers
With everything online these days, digitization has helped not just ecommerce stores and businesses to take advantage of it, but the retail
and logistics business is revelling in its presence. By providing
customers a detailed catalogue of everything that is to be explained of
a product, digital platforms offer them the effortless understandability
of a product online with clear pictures and videos. With offers such as
sales of different kinds, it provides people who are unable to leave the
house to buy products at the comfort of their home.
During COVID-19 the online business and shopping had increased at a huge rate with almost everyone buying different products from digital
platforms only. A survey by Engine found that people are spending on average 10-30% more online. Moreover, according to data from Nielsen,
items like hygienic and medical mask sales are up by more than 300%.
Also, the downloading of apps like Instacart and Ship that allow people to hire personal shoppers to prepare and in some cases
deliver their grocery orders have increased by between 124% (for Shipt) and 218% (for Instacart).
ShipBob, a shipping and fulfilment partner for eCommerce stores, gathered data from 3,000+ of their merchants and to keep such
data stored and tracked needs technology and digitization aids, so such merchants are in dire need of technology to help them
balance and maintain the data properly. Also, the month-over-month increase in online sales for food and beverage is over 18.8
Such is the influence, impact, and need of digital platforms to provide consumers with proper products in the retia business.
Digitization in Logistics and retail provides the right approach and analysis
Sales challenges in normal times are already a stem of difficulty for retail
and logistics, the difficulty that is to be faced amid COVID-19 is over the
top more significant to resolve and make better with digitization and
technology. Data is the biggest asset for any industry these days.
Technology such as Big Data, Data Analysis, predictive analytics is all based
on data management, storage, and utilizing the information to take proper
business measures and reshape business strategies in such a way to step
closure to business growth.
Analyzing data is crucial these days to offer predictive analytics technology that
uses data stored in the system to analyze it and provide information based on
studying and going through the experiences of customers. It provides predictive
analytics that tells us the customer buying behavior and what issues can occur in
the strategies adopted and how the outcome can be enhanced. Machine Learning
and Artificial Intelligence are the prime technologies used in order to tackle and
gain better and efficient results from data and customer experience.
Analyzing in the right manner is what takes the real deal of facing the challenge along with using the right approach and strategies.
As the prime source of generating revenues, a business strategy is a must, some often move on the path of generating sales from a
customer in traditional ways. However, as per industry experts, the adoption of technology and digitization in logistics and retail
has offered more revenue and better results than just adjusting to traditional ways.
Advantages of Digitization
Digitization has numerous benefits, be it small retail and logistics business or for a large business. There are some factors that can help in
the benefit of a business and they are as follows:
E-commerce and digital platforms help customers in the best way possible by allowing them to get a look at the products with
detailed descriptions and pictures for their benefits. As per the COVID-19 safety measures are a concern, online shopping and
business are booming with more and more people opting to buy online rather than going out of their houses.
The online catalog present on the digital platforms helps them save a lot of time with zero effort. Most of the revenue is
generated due to such methods is gaining its popularity with a better side of results too.
Moreover, digital transformation provides quick delivery and effortless shopping of products where quality is not
compromised. During the COVID-19 outbreak, digital platforms have definitely helped a lot in practicing social distancing and
maintaining a safety measure with the products being easily available at the click of a button.
New Opportunities With Digitization Post COVID-19
Business disruption sure brings a lot of difficult situations to face along
with a variety of issues and challenges, but this business disruption that
came with a pandemic has brought digitization as an essential asset for
every business, especially for supply chain and logistics.
Whenever a business goes under changes or faces disruption or challenges, its
primary step is to expand its verticals and go through the issues and areas where
it can make sure to not go through the same thing again. With facing and going
through every business strategy and plan, businesses come across development
plans, new opportunities, expansion methods, new trends and technology
adoptions, and risk factors that can impact the business in a positive way.
All these things come under digitization or transforming a business digitally. When a business is in expansion mode, it goes through
different routes, trades, new product launches, or reshaping business as per the competitive level in the market. Digitization of
logistics and supply chain business is to bring new opportunities with it. Ranging from the usage and efficiency of different techniques
such as AI, ML, IoT, digitization will bring customer satisfaction and brand value.
COVID-19 might not have stopped people from getting out of their homes but it sure has left a huge impact on people to
shop online and use digital platforms more than they used to.
The rapid increase of COVID-19 had disrupted different logistics sector and it has witnessed a sharp decline in the fright
availability due to restrictions on non-essential products and goods. The major sectors that faced a huge decline in its logistics
sector are the Healthcare industry and the FMCG industry.
The adoption of technology has helped the logistics and supply chain sectors to offer home deliveries without coming in contact
with people with the help of drones and unmanned deliveries. Logistics is also to become smart logistics with the help of rapid
digital and technology adoption.
Digital Logistics Market Analysis
The digital adoption in logistics is increasing rapidly in the market ensuring
end-to-end visibility across multiple operations, including such as
shipments, orders, and inventory. This helps in reducing the inventory
levels and increases the response time efficiently promising quick
deliveries. With the help of digitization, the supply chain level has also
become an effortless operation with a swift transition.
The driving factor of digital logistics is the usage of data analytics and new
techniques that helps in analyzing freight rates and modifying contract
timing and length of period to minimize risks. ​Not just this, the digital
logistics market is expected to grow at a CAGR of 8.2% owing to the
increasing adoption of advanced technologies as a constant effort to
reducing allied costs during the forecast period of 2020 - 2025.
As of May 2020, Deutsche Post DHL Group declared the expansion of supply chain networks during the global pandemic. The company
also reported to the development and growth of a software platform with Blue Yonder on Microsoft cloud to help stimulate the adoption
of warehouse robotics. This clarifies that the adoption of technology and digitization has hastened due to the pandemic and every
business is trying to expand and adapt to new challenges and changes.
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