The world of business is rapidly changing, and some sectors are embracing digital transformation while others face a lag in evolving to keep up. Logistics, one of the less digitized areas within the business space, has long suffered from antiquated processes that often waste time and resources. However, switching to automated systems can provide businesses with logistical flexibility as well as cost savings. In this blog post, Benjamin Gordon discusses how you can implement digitization and automation into your own logistics operations to reduce costs, improve customer service and increase efficiency.
Benjamin Gordon On How To Implement Digitization And Automation In Antiquated Sectors Like Logistics
Digitization and automation are critical components of modernizing antiquated sectors, like logistics, says Benjamin Gordon. For companies to remain competitive in a world that is increasingly digital, they must embrace these tools and technologies to modernize their operations.
When it comes to digitization and automation in logistics, there are several actions companies can take to get started. First, companies should look into investing in technology for the supply chain network, such as advanced planning systems (APS), warehouse management systems (WMS), and transportation management systems (TMS). These solutions automate much of the manual labor associated with logistics while also optimizing processes like inventory tracking, forecasting demand, route optimization, and more. Additionally, using big data analytics will enable companies to gain insight into trends across the industry and make decisions based on data-driven insights.
In addition to technological investments, companies should also look into restructuring their workforce and retraining employees for new roles in the digital era. According to a report by McKinsey & Company, up to 375 million workers globally may need to switch jobs due to automation by 2030. Companies must prioritize training and hiring people with skills that are necessary in an automated world, such as coding and engineering skills. According to Benjamin Gordon, this is especially important for logistics companies where most of their operations involve manual labor—by embracing this transition early on; they can ensure they have enough qualified professionals who can lead the business’s shift towards digitization and automation.
Overall, digitization and automation can drastically improve the efficiency of logistics operations while reducing costs and increasing profitability. For example, German logistics company DB Schenker has successfully implemented digitization and automation in its network by investing in an intelligent warehouse management system that automates tasks like warehousing, order picking, and route planning. As a result, the company has been able to save €10 million in operational costs since 2011, with further savings expected over the next few years. This is a testament to how much impact digitization and automation can have when it comes to improving antiquated sectors like logistics.
Benjamin Gordon’s Concluding Thoughts
By making investments in technology solutions and retraining employees for new roles in an automated world, companies can begin their journey toward embracing digitization and automation for greater efficiency and improved profitability. While it may seem daunting, says Benjamin Gordon, the potential gains that come with digitization and automation are worth the effort.