Why It’s Time for Logistics to Embrace Digital Transformation
Like many industries, the logistics industry once depended on pen and paper. While technology has advanced dramatically in recent years, many logistics firms continue to rely on tried-and-tested processes. It’s the classic “if it ain’t broke, why fix it?” approach.
As the industry’s roots go back thousands of years (goods have always needed transporting), this isn’t too surprising. However, in a world that’s increasingly dependent on digital transformation, the risks of employing traditional methods far outweigh the rewards.
What are the barriers to digital transformation?
Despite the benefits of digital, a fear of change can hold logistics companies back. To a large extent, the changes brought about by Covid-19 have been a matter of necessity rather than choice. From our own experience, we see an industry where many businesses are not quite ready to take that leap and fully embrace technology.
Cost is undoubtedly one of the biggest barriers for companies. The sense of investing in something that they can’t physically “see” or hold can seem daunting. A lack of digital education also plays its part; it can be a steep learning curve for people who have only ever known the “old ways”. They struggle to see how they could use technology proficiently, or find the time to train themselves, so they revert to what has always worked.
However, whilst technology can be a big investment, the long-term benefits far outweigh the initial cost. In many cases, the biggest saving is time. Digitising processes that would otherwise take hours (e.g. invoicing) or incorporating real-time vehicle tracking to minimise phone calls can deliver greater efficiency and free up time to focus on business-critical activities such as sales, marketing or product development.
Working with an IT and telecoms consultant can allay any fears around technical knowledge, training or expertise. You don’t need to know which technology you need. As long as you understand the problems facing your business, they’ll be able to identify and implement the solutions that will solve them, while providing training and ongoing support.