Digitalisation is the critical element of improving efficiency in any supply chain. New and innovative digital technologies have brought serious value and savings to logistics companies. Real-time data movement, telematics of machinery, and effortless planning tools are just a few of the many solutions that have impacted the industry. As the IT sector evolves, so do the solutions in logistics. This blog explores the substantial impacts of digital transformation in the logistics sphere.
Warehousing
Warehouse Management Systems (WMS) have changed the world of supply chain. The first Warehouse Management System was implemented in 1975, but a lot has changed. In today's world, a warehouse system is more than just an overview of goods. Best practices include robots, the Internet of Things (IoT), big data analytics, automation, and other new technologies; for example, Eliko UWB-based real-time location system enables locating goods, assets, and people in real-time and with an accuracy of 30 cm. This helps speed up the movement of goods in and out of the warehouse and increases employee safety, efficiency, and security. Digitalisation has made operating and managing warehouses both cost-efficient and accurate in real-time.
Transportation
Transportation is the logistics area that has many different opportunities to optimise processes. Telematics systems have changed the game for logistics companies and have been around for decades. Nowadays, trucks are already integrated with telematic systems, and all the data is accessible to management and logistics managers through the web. TMS are used by most transportation companies and have helped to gain an overview of processes and to make planning easier. Also, the evolution of social media apps has made it easier to transfer information from the office to the drivers.
Real-time economy
The next big thing in transportation digitalisation is using e-waybills and e-documentation. It is essential to understand that a PDF is not an e-document. An e-document is a machine-processable file where data is accessible to each involved party in real-time. The real-time economy is the topic in transportation at the moment, which is supported by the European Union eFTI directive. The eFTI Regulation establishes a legal framework for regulating digital freight documentation exchange in the EU. This will help companies become paperless and have all necessary documentation accessible online.
Use cases of digital solutions in the logistics industry
We have already mentioned the Eliko UWB-based real-time location system and how it helps improve operational efficiency.
Another example is Isekallur, which specialises in direct-to-consumer sales and transport of aggregates and soil and offers rental service to some of its machinery. They recently built a web-based construction equipment rental and management software to improve operational efficiency and accuracy in construction planning for both equipment owners and end customers. This SaaS solution gives Issekallur a competitive advantage, as ordering sand or crushed stone through an e-store and paying for it on the spot was a far-off idea just a few years ago. Still, now it's commonplace for all Isekallur clients.
Moreover, digital solutions like Waybiller are helping improve sustainability and efficiency within logistics businesses by making them paperless. Waybiller provides e-waybills to enhance economic efficiency and transparency in the logistics management ecosystem for shippers, carriers, and receivers by notably diminishing costs and fostering a more transparent tracking and reporting system. For instance, implementing a digital platform like Waybiller decreases the time spent in the overall waybill creation process, thereby increasing economic competitiveness, reducing manual labour and lowering carbon footprint by cutting down on paperwork.
Conclusion
The logistics sector has experienced a significant impact from technology in recent years. IT companies are bringing value by helping logistics companies to operate more efficiently, deliver better customer experiences, improve workflows, and manage sustainably. Being a subcontractor with expert knowledge in logistics can serve several benefits and make the development process smooth and transparent.
With over 15 years of experience and modern digital capabilities, Thorgate has been able to help logistics companies like Waybiller, Isekallur, EPMK, and many others boost efficiency and reduce costs within their supply chain management system. The Thorgate team can always bring fresh ideas to the table to help solve optimisation problems for its customers.
I'd like to thank my colleague and Waybiller Growth Manager, Kert Kaspar Tammaru, for contributing to this article and providing technical insights on emerging digital solutions in logistics.
If you're interested in discussing how to integrate digital solutions within your logistics business to reduce costs and improve customer experience, then feel free to write to hi@thorgate.eu for a free consultation.
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