IT Can Safeguard You From Logistics Challenges

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amit_column_fcLogistics is becoming more complex by the day, mainly due to the changing consumption patterns of people worldwide.

 

As a result, logistics companies face a number of major challenges ahead. Customer expectations are on the rise, and logistics companies need to align themselves with the needs of the supply chain to satisfy customers’ requirements.

 

Today’s economy is also networked, and logistics companies can no longer work independently or in isolation as they have done so in the past. Companies have to collaborate with partners across supply chain networks, who expect integrated processes and systems.

 

Technology grants a logistics company the capability to collaborate in a networked economy.

 

With greater expectations on the supply chain, logistics companies are constrained to keep costs down even as they must raise their service levels. Containing costs can be overcome by optimizing operations through automation and streamlining of processes using technology.

 

The key performance index for measuring the performance of logistics firms is delivery reliability. This capability is deteriorating due to the pressure of increasing customer requirements, greater market volatility, and poor transportation and infrastructure problems.

 

The shortage of talent—especially at the operational level—is also a major problem, and companies are looking at training initiatives to overcome this deficiency.

 

Logistics companies, irrespective of size, are increasingly facing the risk of volatility and disruption, and have to work out strategies to mitigate internal and external risks. Systems and tools thus play an important role in conjoining the entire network in pursuit of managing risk and disruptions.

 

There is an increasing awareness of the need to invest in new technology that can bring comprehensive logistics management capabilities and data intelligence, and improve planning and control measures.

 

The key strategies that companies need to work on are end-to-end integration through technology investments, talent management, and adoption of enhanced operational processes. Information technology can help logistics companies safeguard against logistics challenges, provided they plan and strategize IT adoption and assume a greater level of internal preparation to leverage it.