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Importance of Digitalisation for Logistics Service Providers

1 February 2022

In today's business world, the importance of digitalisation cannot be understated. Logistics has now taken on a new meaning as companies increasingly rely on technology to streamline operations and drive growth. Here's a look at what digitalisation means for logistics service providers today and how they can make the most of it.

What Are Logistics Service Providers

Logistics service providers are companies that offer a variety of services to help businesses manage their supply chains. These services can include anything from transportation and warehousing to freight management and distribution. Value-added providers offer a higher level of service than traditional transportation and warehousing providers, resulting in tangible benefits for businesses. This is why finding a value-added logistics service provider can be the difference between a successful supply chain and a struggling one – and what all value-added logistics service providers have in common is the digitalisation of their businesses.

Digitalisation and Its Importance in Logistics

Digitalisation is defined as the transformation of businesses into a more digital format, and this has been a rising trend in logistics over the past few years.

This trend of digitalisation stems from practical reasons. Time is arguably one of the most precious resources when it comes to business, with every logistical step requiring precise planning. By automating tasks and workflows, logistics providers can boost performance and productivity while reducing operational costs.

In the past, logistics was a largely manual trade – from warehouse stocking to last mile fulfillment. However, due to COVID-19, the logistics industry has pivoted greatly and is now relying heavily on data and digital processes to function successfully. Companies are digitising their operations and embracing new technologies, such as making use of Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs). These digital tools, in the right hands, have the power to make or break the bottom line for any logistics company.

Benefits of Digitalisation in Logistics

1. Streamline and gain data-based insights

Digital technologies can help streamline processes and improve decision-making with the help of analytical insights. Information processed digitally can be compounded into spreadsheets and crunched to provide data-based insights that helps with improving efficiency. For example, understanding the average turnaround for a particular Stock Keeping Unit (SKU) and its popularity will further lead to proper inventory management and mitigate waste in both time and money. While such information can be gleaned from traditional pen and paper record-keeping, the amount of work needed would be extremely tedious.

2. Understand company's real-time condition

The ever-changing landscape of logistics means that companies must be able to adapt quickly to stay ahead of the competition. One major way that businesses can do so is by digitising their operations. This allows them to get a real-time view of their condition and make better decisions accordingly. For example, by adding data to previously abstract concepts, management and C-Suite employees can view information contextually and make better decisions. Digitalisation helps get everyone on the same page and renders information in an understandable and accessible way.

3. Better visibility on the operations

In logistics, businesses must take into account all aspects of the supply chain including acquisition, transportation, storage, distribution, and disposal. Transparency is key for all levels of the operations. By having better visibility on the status of inventory and shipments, managers can plan and optimise routes, identify problems and delays, as well as track KPIs. This can greatly improve a company’s overall efficiency and performance.

Work With The Best One-Stop Logistics Service Provider in Singapore and Asia

Digitalisation is pivotal for businesses in today's era. From bonded logistics hubs to international shipping via vessel chartering, Halcon Primo Logistics provides customised solutions and serves as the one-point of contact for all companies. Reach out to us today and fret no more about your logistical needs.


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