The benefits of digitalization in the supply chain can solve big problems and increase your ROI exponentially. This happens because digital technology speeds up the logistics activities of companies while enabling them to carry out their processes effectively and efficiently.    

Digitalization in Logistics 

Currently, organizations are applying technology mostly in transportation, resource planning, warehouse, and in the security of information.  

• Resource planning: technology helps businesses to plan how to use their resources efficiently. It also provides them with effective communication with their customers and their manufacturers. 

• Security of Information: technology allows businesses to store their data in a computer environment. The idea is to protect the information in computer environments against cybercrime. 

• Warehouse: technology enables companies to use warehouses efficiently. It is also an advantage in a competitive environment since by equipping the warehouse with technological systems, labor costs are reduced and errors in counting goods in the warehouse are much lower. 

• Transportation: digital technology allows companies to see where their shipments are. The systems they use to track their goods, also enable customers to follow their product. 
  

Benefits of supply chain digitalization

As we can see, digitalization is important in a lot of areas of a business. This is also in line with what Hasan Bardakçi says in his article “Benefits of Digitalization in International Logistics Sector” published by the International Journal of Social Science and Economic Research; “Digitalization attracts businesses like a vortex and provides assistance in all areas. Technology is indispensable for businesses in order to keep up with global markets that are constantly changing and developing and to achieve success.”  

Therefore, according to Hasan Bardakçi, the benefits digitalization brings to your logistics are at the same time needed to survive in the new global market. The most important benefits of digitalization are: 

Cost Optimization 

The first and immediate benefit of digitalization is cost optimization (of resources) and cost savings. Companies are using their digital transformation initiatives to bring in efficiencies and utilize existing resources better, a direct cost implication. Automation saves time and eradicates duplication and repetitiveness of tasks, again a cost reduction. By monitoring processes constantly, there is a reduced possibility of (manual) error. This also leads to the predictive response, instead of reactive which in turn leads to greater agility and saves you money. 

Get the best-talented employees 

The recent trend of remote working clearly highlights one of the main benefits of digitization. Companies that have transformed digitally are able to provide employees with secure access to data anytime, anywhere, while collaboration tools help them work from different parts of the world. This means they can recruit highly skilled employees across borders. 

Enhance your relationship with customers 

Digitizing your processes to provide more agility and security to your customers increases your competitiveness and your relationship with them. It is the result of offering them the possibility of tracking their purchases, giving them the best quality product, and assuring them that their purchases will arrive within the required time frame. 

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In short, digitization provides you many benefits to your business and to your supply chain. From making your warehouse more efficient, to accomplish all your end customer’s requirements. If you want to digitize your supply chain, reduce your costs, integrate your team and improve your customer service, you can do it here! Do not waste time and obtain them today!