Human civilization has been trading goods for centuries. Over the period of time, this trade has been expanding through cities to countries and even to continents. The silk route was one of the famous trading routes of recent times when human civilizations were prospering along the trade routes. Trade routes were seen as having financial importance for the civilizations.
The trade is nowadays highly dependent upon the supply chain process. Supply chain management is an important topic in each company that is looking to succeed and expand its business. In recent times a lot of development has been taking place in the supply chain process, and it has been transformed.. Supply chain management is a process that involves searching and developing new supplier sources, managing relationships with the suppliers, managing the logistics networks for goods from supplier to own facility, warehouse management, and delivering the goods to the customer.
Traditional Supply Chain
Traditionally the supply chain was based on traditional logistics, however recently the concept has been changing, and now more and more companies are moving towards digitalization of logistics. In the traditional logistics process, work was done primarily based on paper, pen, and boards, etc. There was less correspondence between the departments and even within the department. The communication was slow and in some cases was so slow that it might create hurdles and bottlenecks within the supply chain process.
Digital logistics has revolutionized the supply chain process. In the era of Covid-19, digital logistics has been a need of the hour, to reduce the bottleneck in the logistic networks, and also improve the overall supply chain management, while reducing the physical human interaction.
It has introduced the concept of using the application, apps, programs in the supply chain process. Digital logistics has transformed the supply chain process into an automated and digitized process. Earlier in the traditional logistics, the supply chain was mostly based on paper and pen. It has improved not only the lead time but also has improved warehouse management, inventory management, which all have translated into higher customer satisfaction levels. It has also helped companies in sustaining their business through lowering the cost of logistics, warehouse, and inventory cost.
Digital and Traditional logistics
Traditional and Digital logistics have a few significant differences in the planning and supervision stage of logistics that differentiate these both logistic models. These logistics have different parameters for crucial supply chain process handling.
Traditional logistics rely mainly on paper pen working, computer excel worksheet, clipboard, product inventory handling, and other steps involved in the logistic process. On the other hand, in the Digital method, the company implementing the system has its digital technology web portal, mobile programmed application, and systems with integrated software that makes the process hassle-free and target-oriented. It is easy to monitor the supply chain process.
In traditional logistics, each department of the company, such as inventory, warehousing, logistics, planning & procurements, is working independently in an isolated system from each other, without knowing the status of another department. Only higher management has a complete picture of the supply chain process, creating a bottleneck due to a lack of real-time information flow to each department.
While in the Digital logistic mechanism, all departments are integrated into each other through a standard system or program application and can see the whole supply chain process at any given time, thus giving the better command on planning. This benefit of Digital logistics is that the entire process is open for every member to execute the strategy smoothly, without any disruptions.
How Digital Logistics is Transforming supply chain
Digital logistics have changed the overall traditional supply chain process that was earlier more dependent on human interaction, has now transformed into a digital, automated process, that involves less human interaction. The digitalization of the logistics process by using computers, email, supply chain applications has reduced the cost of doing business.
Amazon and Alibaba companies are good examples of digital logistics. Digital logistics helps the companies through an automated, digital process of order booking, warehouse management, inventory management, forecasting demand and supply mechanism and it also provides its customer the option of real-time tracking of shipments and logistics networks.
Companies have trained their staff to transform and improve their supply chain process. By training their staff the companies have modernized the way they handle the logistics of their products to customers.
Benefits for Digital logistics
Digital logistics is a communication logistics network for sharing facts to all data customers upstream and downstream. It creates a constant feedback loop in the supply chain. Beyond joining data and systems, the digital thread needs the integration of people and workflows. Better data communication will permit the whole product chain to develop more responsive in terms of alterations. In design, manufacturing, capacity, alternative and through-life service supplies.
Eventually, establishing this digital logistics thread between suppliers, customers, and organization is the foundation of the evolution from supply chain logistics solution. To the cohesive value chain, where suppliers and customers team up to achieve competencies and lower costs. There are lot of benefits of using digital logistics, that is why more and more companies are now attracted towards using digital logistics. To improve their supply chain process. Below we will discuss some of the important benefits of digital logistics:
Digital logistics is an integrated process that brings all the staff of the supply chain process on board. This will help in reducing the lead time of delivering the goods. Further by integrating the system, it is easier to remove the bottleneck, in the supply chain process. An Integrated system also provides the team member of the supply chain process to locate the goods in real-time tracking.
This facility of real-time tracking is also available to the customer. This will also result in higher customer satisfaction. Many companies are reconsidering their distribution prototypes as customer shopping habits change. Today’s consumers have little patience for delayed or inappropriate orders with logistics distribution from warehouse management to order fulfillment. By leveraging virtual or amplified reality tools. Businesses can offer models of virtual tours and display new products or facility offerings.
Digital logistics help in better managing the inventory and warehouse management. The integrated process of digital logistics will help the company in forecasting the demand. As well as managing the current supply chain process. In the most efficient way, which will reduce the inventory and warehouse costs of the company.
The incorporated value chain is based on a new level of transparency and data sharing, including constant, bidirectional communication and inter-company perceptibility into everything from inventory warehouse management, supply chain management, and shipping interruptions to factors predicting shifts in demand. End-to-end visibility is mainly a function of being able to reach data across logistics networks. Digital logistics with significant Value co-creation has a win-will situation
Digital logistics is an integrated solution that is user-friendly to operate. The team member of the supply chain process, as well as the customer, can use this easily without any problem. However, it is always better to provide training and demo facilities to your staff for better results from this solution.
Digital logistics has better enabled the companies to provide customer support 24/7 to their valued clients. Through the real-time tracking and integrated process, the customer can know about each step its products are currently moving from. Digital logistics is the future of supply chain management.