Smart Logistics support seamless supply chain processes to meet business needs. Every touchpoint is important in customer interaction, from how quickly customers receive their goods to satisfying customer satisfaction. Smart logistics can be used by companies to deliver products more quickly and efficiently. It will give them a competitive advantage over competitors. The logistics service sector is experiencing substantial growth and many companies are seeking to subcontract their logistics because there is less expertise in these areas. E-commerce is unstoppable, which requires faster delivery and efficient inventory management. Logistics Service Providers can benefit from a new generation of smart technology. This article discusses some smart technologies that will benefit most organizations for logistics service providers.
Internet of Things (IoT) Technology
The IoT is a physical device that connects to the internet to share and collect data over a wireless network without human intervention. The availability of wireless networks and small computer chips make it possible for thousands of products to stay connected. IoT devices will be able to detect and monitor their environment and report their status. A new system, IoT assistant, gives logisticians a real-time visibility into the movement of goods and the status of shipment. This system enables a company to increase efficiency, reduce their cost and even reduce the need for manpower. Cybercriminals can always find their way through one of the security vulnerabilities that are found in IoT systems. Many IoT devices have default passwords left unchanged, it has become a good ‘target’ for cybercriminals to aim for. Cybersecurity is a concern when implementing IoT in logistics. In order to minimize risks, the company can set a schedule for regularly changing the passwords of IoT devices to prevent cyber-attacks.
In today’s global supply chain network, freight brokers play a pivotal role because they help complete cargo transactions from shipper to carrier and charge additional premiums. This has led to a substantial increase in the cost of logistics service providers. As complexity increases, profit margins are further reduced, which makes solving this problem even more challenging. The blockchain technology can prove to be a game-changer in this regard. One of the best ways to reduce overhead is to use blockchain-based smart contacts. These contracts will help reduce the number of intermediaries to a large extent. On the other hand, using blockchain for inventory management can eliminate potential data errors and delivery delays. The companies allow track each shipment, estimate the delivery time of different routes, and calculate delivery costs more accurately. By improving the inventory management, this means the company is reducing their costs and increasing the profits.