How GenZ can implement tech in logistics automation - Logicsofts

How GenZ can implement tech in logistics automation

14th February 2024

The worldwide logistics industry is currently 6.28 trillion Euros strong, all set to touch 6.88 trillion in the next 2 years.

While the pandemic negatively impacted the industry, logistics has done a great job resurfacing and claiming its position as one of the most sought-after industries. However, its costs are just as high too, at around 9.1 trillion USD.

The only way to balance the demand and costs of logistics is to optimize the entire process. This is where technology makes an appearance.

Technology has been at the forefront of growth and innovation across sectors for over a decade now. The pace at which it was impacting logistics was slow, though. The pandemic, after hitting the world hard, disrupted this pace drastically and accelerated tech adoption in logistics.

The benefits of technology in logistics automation

logistics automation

We are at a point where it is impossible to meet the growing demand for various goods without incorporating technology. In logistics automation particularly, tech can be revolutionary due to the following reasons:

  •  Stringent security: Technology provides advanced privacy and data security, guaranteeing confidentiality, which is paramount in business relationships. It integrates multiple processes and encourages close monitoring and tracking by all parties involved, thereby eliminating the threat of security breaches and data loss.
  • Easy scalability: Efficiency is the key to scalability, and that is precisely what technology provides. It streamlines supply management, especially when the demand increases. This involves extending terms of business to multiple units within minutes, generating analytics, and identifying key bottlenecks that pose a threat to scalability.
  • Reduced costs: Implementing technology helps save operational costs through automation, which results in increased speed and fewer/zero errors.

Tasks such as organizing data, listing inventory, tracking shipping information, optimizing the customer knowledge base, and generating electronic invoices do not need human intervention. So, handing over these tasks to technology will directly save costs.

  • Seamless communication: Communication is a key determinant of the company’s reputation and transparency. Tech can replace outdated methods of communication and integrate multiple platforms, leaving no gaps in the supply chain.
  •  Transparency: No industry can survive without transparency. In the world of logistics, it is the highest on the list because of the involvement of multiple parties, goods, and services. For instance, we have come across cases where transparency becomes an issue.

Can GenZ easily adopt technology?

If anyone can do it, it is GenZ! Tech adoption has been slow over the years due to a lack of understanding and a certain resistance towards it because older generations take time to grasp the concepts. Despite being extremely user-friendly, tech comes with a learning curve that not many are open to.

However, things are very different with GenZ. This is a generation that has grown up amidst tech. For youngsters, tech is already a way of life. The learning curve is, thus, smaller, and the enthusiasm is over the charts!

How can GenZ go about implementing technology?

All you need is a direction and you can conquer the world! When it comes to implementing tech in logistics, the approach must be step-wise. In this section, we shall walk you through the most crucial steps.

Virtual payments – Paperless approach

Contactless logistics are the need of the hour and a paperless approach is a major step in that direction. Digitizing payments and building paperless offices is easier now than ever, thanks to digital payment solutions. The logistics industry also has virtual fuel cards that make financial transactions transparent and quick. Implementing these processes is quick, making them a great starting point in integrating tech in logistics. 

Transportation Management Systems (TMS)

TMS can be used for route optimization, carrier management, real-time tracking of drivers, and increasing transparency throughout the supply chain. The output is high efficiency and lowered costs, automatically improving customer satisfaction.

Radio Frequency Identification (RFID)

Radio Frequency Identification

RFID is another masterstroke in the tech world. It has been popular for a while now and has a special place in logistics because it helps track inventory through sensors or tags. Radio waves carrying the data reach the company for processing and further evaluation. These tags make identification and monitoring of containers and goods a piece of cake. They come in handy even in distribution warehouses. 

Superior GPS accuracy

Our youngest generation cannot imagine a time when directions were drawn out physically or paper maps were used. GenZ has grown up using GPS to reach different places. The fact that it is already integrated into our smartphones is a bigger plus. You can do the exact same to optimize delivery efficiency. Latest technology has strengthened GPS drastically, making it accurate like never before. Drivers can reach locations quickly and in the most proficient way, thanks to updated traffic data, roadblock alerts, etc.

Crowdsourcing technology for last-mile delivery

Last-mile delivery takes up 53% of the overall shipping cost. Logistics partners and retailers have to bear these costs because “free delivery” is the ongoing demand, and customers are not very likely to pay for shipping. The introduction of tech to improve this process can significantly lower the cost. Uber and Postmates, among others, have started using crowdsourcing technology to make deliveries faster and to bring down costs at the same time. Connecting with non-professional couriers, scheduling delivery, allowing on-demand delivery, and improving customer experience are all possible with this concept.

Autonomous trucks

Autonomous trucks are an excellent solution to last-mile delivery problems. Uber embraced this idea a while ago, while Tesla is soon to release autonomous vehicles that can function without a driver. We all know that HGV can be hard to insure. The sooner the logistics industry acknowledges this advancement, the better because autonomy will reduce delays, increase productivity, and save time.

The only thing to note is that this technology is not yet advanced enough to work without human input. An individual needs to be present in the vehicle to monitor the computer. Despite that, its benefits are hard to dispute.

P.S. Amazon is all set to deliver through drones, but balancing expenses and meeting regulations can take time.

Cloud computing

Cloud computing

Gone are the days when data was stored in physical devices. It is the era of the cloud! Cloud adoption is important for logistics because it enhances scalability, protects data, simplifies e-commerce order fulfillment, and makes the implementation of new technologies easier. It essentially decentralizes data to make it more accessible. Also, even if an unforeseen disaster strikes, you can be sure that the data will be safe in your chosen native or hybrid environments.

Hyper-automation

Hyper-automation is a combination of multiple technologies to structure the supply chain. For example, AI and Optical Character Recognition together can take care of sales orders without any problems. You can further add another technology or two to remove human involvement from process handling to transportation altogether.

Conclusion

Once upon a time, technology was very difficult to implement. Early adoption was quite slow but things were running smoothly. The post-pandemic era is extremely different and with trillions of dollars on the line, going slow is not an option.

Thankfully, GenZ can do embrace technology with a lot of ease because of their familiarity with modern tech and advancements in the field. The aforementioned steps are simple to implement yet powerful because they mainly focus on optimization of the supply chain and reduction of costs – two of the biggest problems that the logistics sector faces.

Author Bio

Hazel Raoult is a freelance marketing writer and works with PRmention. She has 6+ years of experience in writing about business, entrepreneurship, marketing and all things SaaS. Hazel loves to split her time between writing, editing, and hanging out with her family.

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Author : Hazel Raoult



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