Digitalize your logistics: what, why, and how

Digitization, digitalization, automation: many are the terms used to convey the current technological advancements that businesses are adopting all around. As we will see, these concepts slightly differ – both in their implementation and in their results – but they all share a common objective: shaping an efficient, future-proof company to stay ahead of the market.

Let’s be clear: what is digitalization?

We have all been there: when a CEO, a logistics manager, or a consultant speaks about “going digital”, the broad terms of “digitization”, “digitalization” and “automation” start to crowd our minds confusingly. So, before seeing how to unleash your full tech potential, let’s clarify what these terms really mean.

The word digitization describes the consistent shift from analog to digital supports, embraced by most companies in the last decades, when computers and software solutions first entered their bureaus. In this case, technology was merely adopted to transfer sheet records and databases to digital folders. Although this advancement already brought many advantages (e.g., optimized data storage, faster sharing, and paper saving) the related work streams did not evolve significantly: documental management and supply chain supervision were still labor-driven practices, subjected to potential human errors, and lengthy elaboration.

On the contrary, automation describes the (subsequent) transfer of the most repetitive, highly quantitative business operations from human activity to technological systems. Predictably, this shift does not only require the digital availability of supply chain data and documents, but also their constant elaboration by a software that manages and runs operations automatically. The advantages here are evident: minimized errors, faster times, and more productive human resources who were previously involved in repetitive and manual operations.

Finally, the – even broader – concept of digitalization refers to the overall harmonization and optimization of automated business processes, through which the company can focus on growth and innovation. Real-time data gathering, and information sharing with multiple devices – the so-called Internet of Things -– are at the core of this change, so that digitalization is evidently a more complex, omni-comprehensive process to establish. As for supply chain management, many are the gears composing this complex engine, such as end-to-end traceability, real-time data management and cost-revenue supervision.

Invest today, thrive tomorrow: the advantages of digitalization

Many are the reasons why a company should embark on business digitalization. Some of these are connected to process efficiency, such as the reduction of costly errors connected to human mistakes, the possibility to adopt more collaborative working tools or the wider capacity to plan inventory and transport in advance, so to cut expenses and times.

Many more are the indirect benefits of digitalization, like an improved communication of your results, both internally and to external partners, and a faster, more extensive set of information for managerial decisions.

If these advantages were not sufficient to convince you, there is one more crucial factor that underlines the need for digitalization: competition. Nowadays, the top players of all industries have reached the top by placing digitalization at the core of their strategies (need an example? check out the Amazon lesson) and every business must embrace this wave to stay competitive. Furthermore, evidence shows that this tendency was even accelerated by the pandemic that we are – hopefully – leaving behind us: a recent global survey by McKinsey presented what 800 executives envisioned for their companies in the post-pandemic “new normal”: 85% affirmed that the digitalization of workstreams increased and would be reinforced, and around 35% programmed to further systematize the vertical integration of their supply chain by using digital platforms. Thus, if you want your business to outperform competitors, a systematized approach to digitalization is a must-have.

Digitalization, made easy: how to innovate your business in a few clicks

We mentioned that the aim of digitalization is to simplify business operations. However, at a glance, the implementation of the technological shift described above could not seem more complex.

How to migrate every operation to digital, while harmonizing all processes in one bigger picture? How to gather real-time transportation data and optimize logistics? And, above all, how to implement all these advancements at the same time, while keeping costs down?

The solution here is quite easy: choose a technological tool that takes charge of all complexities, and a trusty team to accompany you on the journey. Here at Cargoful, we will actively help you during all the crucial stages of the process, namely:

• Analyzing your firm’s necessities and the areas to digitalize together;

• Choosing the right package of tools to boost your performance;

• Integrate our software solutions with your previous processes and tools;

• Keep track of the results and advancements of your new worklife with Cargoful.

Here are some of the expected results based on our experience in the transport sector: your team will be able to save up to 75% of time spent in planning, so to focus on higher-value activities to grow the business. Your optimized transportations will drastically reduce your carbon footprint, and your revenues will take the fast lane thanks to an increased fleet utilization.

Seems unbelievable? Take a ride and book a demo with us.