There was a time when logistics was managed manually and companies depended solely on the experience of their employees to manage the business. But logistics companies have changed so much that the current times could very well be associated with the rise of digital logistics.
The increasing use of technology in logistics has brought to the fore the importance of data. Data enables the creation of a more detailed, accurate forecasting framework for use in real time. This helps companies respond almost immediately to operational delays and snags. Moreover, data platforms allow companies to focus on the larger picture instead of routine tasks.
Data allows logistics companies to improve service and efficiency by leveraging it for business decisions. In addition, increased visibility—more than just the capability to track and trace movement of shipment—allows companies to identify and adjust for risk during adverse circumstances.
Today data is considered central to the optimum execution of logistics operations. Data-driven decision making has also become a core competence and will become essential for future logistics.
In reality most companies are not yet ready on the infrastructure and technology front. Companies that have the resources are ill-equipped to deal with the substantial volume of data generated. Very few have the required knowledge, resources or tools to make the most of the available information.
The ability to analyze data and leverage it is quickly becoming a vital component in the logistics business. For that, companies need to put in place a sustainable and innovative technology infrastructure. The use of application that can assist in visibility, freight movement, forecasting, planning, and risk management will help companies become data-driven.
The future of logistics will be driven by data and companies that adapt accordingly can sustain themselves and grow in the long run.