How technology in logistics and transportation can reduce inefficiencies in the supply chain management system, thus assuring integrated operations from customers to suppliers and ushering an era of disruption that will make companies rethink their supply chain processes.
Logistics: The Integral Part
In India most of the company’s logistics is the last priority but in Japan and USA it is an integral department which connects all departments. Perfection cannot be achieved, as perfection is not absolute, It can be at any point of time but at the same that has made benchmark for the next level. Similarly, in business inefficiencies cannot be eliminated, every process has space of eliminating inefficiency to bridge the gap between inefficiencies and perfection. Automatization and digitalization are helping to reduce inefficiencies by introduction of ERP, RFID, GPS, Sensors and other technologies.
Many companies tried to solve problems with advance technologies, but way forward is Digital logistics. In future shippers will get all the logistics services on smartphone app. It means a shipper will pay for the services for the time for which the service is being used rather than for a fixed period at market price, shipper can reduce cost by integration their system with logistics company without any physical intervention. Companies must redesign their entire supply chain activities to reduce logistics cost from 14.4% to 9 % of GDP.