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By: Jessa Mikka Convocar on March 29th, 2023

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How Technology Benefits Logistics Companies(& Handy Tech Advancements)

Managed IT Services | Industry

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: 

List of technological advancements in logistics

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. Everything You Need to Know About Managed IT

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  

enhanced efficiencyOne 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  

low costsThe 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  

improved customer experienceWith 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: 

Everything You Need to Know About Managed IT