How Technology Benefits Logistics Companies(& Handy Tech Advancements) (2024)

The hard truth about today’s logistics landscape is that if you don’t adapt, you will get left behind.

As the logistics market gets increasingly competitive, many businesses are finding themselves challenged to innovate their operations and customer experience. That is why more and more businesses are investing in the improvement of their IT.

Technology in logistics has allowed faster data flow, a comprehensive distribution system, and improved collaboration with e-commerce, resulting in increased revenue.

At Intelligent Technical Solutions (ITS), we’ve had several clients reach out to us regarding tech failures that prove detrimental to their business. That is why we’ve been helping organizations understand and manage their technology to its maximum capacity.

In this article, we’ll go over the following:

  • Technological advancements in logistics
  • How technology benefits the logistics industry

After reading, you will know why technology is critical to keep your logistics business running.

Technological Advancements in Logistics

Technology is the heart of all businesses, no matter what industry you are in. But in logistics, advanced tech is what keeps you a step ahead of competitors. In recent years, we have seen significant advancements in areas such as:

How Technology Benefits Logistics Companies(& Handy Tech Advancements) (1)

1. Automation

Automation has been one of the key drivers of progress in the logistics industry. Automated systems, such as robotic process automation (RPA), can handle routine tasks, such as data entry, more efficiently and accurately than humans, freeing up employees to focus on higher-level tasks.

Automation has also improved accuracy and reduced the risk of human error, leading to fewer mistakes and improved customer satisfaction.

Related blog: How Workflow Automation Makes your Business Processes More Efficient

2. Data Analytics

Data analytics is another area that has seen significant advancements in recent years. Logistics companies now have access to vast amounts of data, including information on customer behavior, delivery times, and supply chain performance.

With the help of sophisticated data analytics tools, companies can analyze this data to gain valuable insights into their operations, identify areas for improvement, and make data-driven decisions. How Technology Benefits Logistics Companies(& Handy Tech Advancements) (2)

3. Drone Technology

Drone technology has also made great strides in recent years, with logistics companies exploring its potential for delivering packages and supplies. Drones can fly over traffic and reach remote locations, making them an ideal solution for delivering goods in challenging environments.

Drones are also faster and more cost-effective than traditional delivery methods, making them a compelling option for companies looking to improve delivery times and reduce costs.

4. Internet of Things (IoT)

IoT is another area that is transforming the logistics industry. IoT devices, such as sensors and tracking devices, can be placed on packages, containers, and vehicles, enabling companies to track their movements in real time. This information can then be used to optimize delivery routes and reduce transit times.

5. Virtual and Augmented Reality (VR/AR)

VR and AR provide training, simulate real-world scenarios, and improve safety. For example, VR can train employees on how to operate complex machinery, while AR can provide real-time information and guidance to workers in the field.

How Technology Benefits the Logistics Industry

The logistics industry is one of the more critical and complex industries in the world as it involves many moving parts, including managing schedules and supply lines, mapping delivery routes, and delivering shipments.

That is why embracing technology to streamline processes and improve overall efficiency is all the more important.

Here are three of the most significant benefits of technology in your logistics business:

1. Enhanced Efficiency

How Technology Benefits Logistics Companies(& Handy Tech Advancements) (3)One of the most notable benefits of technology in the logistics industry is improved efficiency. With advanced technologies like GPS, automation, and the IoT, companies like yours can now track the movement of your goods in real time.

This has made it easier for businesses to:

  • Optimize supply chain operations, reducing the time it takes for goods to reach their destination
  • Allow a faster response time to any issues that may arise during transit, minimizing the risk of delays and lost shipments
  • Provide customers with more accurate and up-to-date information on the status of their shipments, improving transparency and building trust

2. Reduced Costs

How Technology Benefits Logistics Companies(& Handy Tech Advancements) (4)The use of technology has also had a significant impact on the cost structure of the logistics industry. Automating certain processes has reduced the need for manual labor, resulting in lower labor costs.

In addition, GPS and real-time tracking have made it easier for companies to optimize their routes, reducing the amount of fuel they use and, therefore, reducing their carbon footprint.

This has resulted in lower operating costs, which can be passed on to customers through lowered rates or better services.

3. Improved Customer Experience

How Technology Benefits Logistics Companies(& Handy Tech Advancements) (5)With the help of online tracking and delivery updates, customers can now track the status of their deliveries in real time and have a clear idea of when they can expect to receive their packages. This gives customers peace of mind and reduces the stress and uncertainty of waiting for a delivery.

In addition, technology has also enabled companies to offer a range of customer-friendly services, such as same-day delivery and flexible delivery options.

Need Help Managing the Technology of Your Logistics Business?  

In an industry where technology plays a crucial role in ensuring everything runs smoothly, you need a dedicated team of experts to help you manage your IT. This responsibility may be too much for your in-house IT, so outsourcing may benefit your business in the long run.

Whether you are a small logistics business or a large enterprise, hiring a Managed IT Service Provider (MSP) is a smart investment that can help you achieve your business goals and succeed in a highly competitive industry. Partnering with an expert IT service provider can easily provide you with the following technological benefits:

  • Enhanced operational efficiency
  • Reduced costs
  • Improved customer experience

At ITS, we help hundreds of clients make intelligent choices about their technology. If you’re still undecided, check out the following resources:

  • How to Choose the Best IT Service Provider? (Key Considerations) 
  • 20 Questions You Should Ask an IT Support Company Before Hiring Them
  • Everything You Need to Know About Managed IT
How Technology Benefits Logistics Companies(& Handy Tech Advancements) (6)

How Technology Benefits Logistics Companies(& Handy Tech Advancements) (2024)

FAQs

How Technology Benefits Logistics Companies(& Handy Tech Advancements)? ›

Artificial intelligence and machine learning in logistics

Technology enables businesses to automate manual processes, reduce errors, and optimize operations, resulting in faster and more streamlined supply chain processes.

What are the benefits of technology in logistics? ›

Artificial intelligence and machine learning in logistics

Technology enables businesses to automate manual processes, reduce errors, and optimize operations, resulting in faster and more streamlined supply chain processes.

How has technology changed the logistics industry? ›

Technology is reshaping the transportation and logistics industry, propelled by the dynamic duo of automation and digitization. Automation Boosts Efficiency: Automation, from autonomous vehicles to robotic warehouses, streamlines operations, minimizing errors, and optimizing resource utilization.

How does information technology affect the performance of the logistics industry? ›

Technology has enabled logistics companies to improve their efficiency, accuracy, and speed, while also providing greater transparency and visibility into the supply chain. One of the most significant trends in logistics technology is the use of automation.

What technology is used in logistics management? ›

Artificial Intelligence (AI) and Machine Learning (ML) Blockchain. Internet of Things (IoT) Augmented (AR) and virtual reality (VR)

What is a benefit of using technology to transport? ›

One of the most significant impacts of technology on transportation is the improvement of safety. Technologies like collision avoidance systems, lane departure warning systems, and advanced braking systems have made vehicles much safer for drivers and passengers.

What are the benefits of logistic company? ›

They can help businesses with the storage and transportation of the products, thereby improving customer satisfaction. They will do everything for your business- procurement, storage, distribution, and order management. All the benefits listed above will enhance the overall order fulfillment process.

What are the benefits of digitalization in logistics? ›

The benefits of supply chain digitalisation
  • Reduce costs. ...
  • Increase productivity. ...
  • Improve decision-making. ...
  • Improve collaboration between the various stakeholders. ...
  • Contribute to the CSR strategy. ...
  • The information system and data. ...
  • Team training. ...
  • Change management.
Oct 17, 2023

What technologies are shaping the future of logistics operations? ›

With the development of technical capabilities and advanced systems, everything that one can think of with respect to logistics innovations is possible today. Be it, autonomous systems, IoT platforms, automated trucks or drone implementations.

How does technology help outbound logistics? ›

Modern technology is transforming outbound logistics by enhancing visibility, optimizing outbound logistics processes, and improving overall efficiency and customer service.

What is the role of information technology in logistics? ›

Information technology plays a crucial role in improving logistics and supply chain management performance by facilitating efficient communication, reducing paperwork, improving accuracy, and accelerating cash flow.

What are the benefits of information system in logistics? ›

One of the main benefits of information systems in logistics processes is improved accuracy and efficiency. By automating manual processes and reducing the reliance on manual data entry, companies can minimize the risk of errors and improve the speed at which they can manage their supply chain.

How does information technology help in supply chain management? ›

IT systems help track inventory levels in real time, automate reordering processes, and analyze data to predict inventory needs, significantly reducing the risk of stockouts and overstock situations.

How technology is changing the logistics industry? ›

Logistics & Technology

Improved technology has also increased productivity in the supply chain, minimizing costs and errors. These advances benefit all areas of the logistics industry: trucking transportation, international transportation (ocean and air), supply chain management, and shipment tracking.

What is the latest technology in supply chain and logistics? ›

AI, IoT & Cloud Technology Continues to Trend

The AI/ML, IoT, AR, and cloud platforms are expected to assist identify patterns, errors and proper supply chain data issues in real-time.

What are the digital technologies used in logistics? ›

Artificial intelligence (AI)

AI algorithms process massive data streams to reveal powerful insights. You can use this intelligence to optimize logistics operations and delight customers. The technology accounts for countless variables, continuously learns, and minimizes inefficiencies.

What are the benefits of technology in the supply chain? ›

The benefits of supply chain technology
  • Accessible information and data. The sheer amount of data in your average supply chain is staggering. ...
  • Improved Order Management. ...
  • Improved Warehouse Management. ...
  • Better customer service. ...
  • Saves time. ...
  • The internet. ...
  • Automation. ...
  • Cloud computing.
Dec 13, 2023

What are the benefits of smart logistics? ›

5 Immediate Benefits of Implementing Smart Factory Logistics
  • Maximum savings on order management cost.
  • Significant reduction in material handling cost.
  • Lowest inventory holding cost.
  • Highest availability.

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