We are witnessing a digital transformation in logistics companies across the entire sector. Hand in hand with new technologies, it is possible to optimize process management more efficiently, considerably reducing costs.
One of the main vehicles in this change is blockchain technology.
Some of the most widespread errors is seeing digitization as a goal in itself, when in reality it is the way to achieve more efficient business and logistics management. The digital transformation in companies is driving the improvement of productivity and competitiveness.
In this article, we will analyze the main problems in the sector, and how these new models solve it and offer us a window of opportunity.
Towards a digital transformation in the supply chain
The digital transformation in the supply chain responds, mainly, to one reason: the change in the way of consumption and in customer expectations.
At present, the way of acting has been streamlined. Not only are faster processes required, but also more comfortable ones. The customer needs range of movement, purchase and an increase in the possibilities of collection and return of what they are going to acquire. In these factors we can find a clear relationship with customer satisfaction and their buying experience. This means that they will be determining aspects for which you choose one or another company to make your purchase, something that enters us in a very competitive field.
It is known that one of the key logistics problems is traceability, and it is caused by the lack of trust that exists between the actors involved. Blockchain technology has the ability to play a fundamental role here.
Reasons for a digital transformation in logistics
What was wrong so far in the field of logistics and why is a digital transformation necessary in logistics?
–Delivery times. It is necessary that any company (to be competitive) be able to set delivery deadlines with accuracy. This aspect has become a very relevant criterion in the assessment of consumers.
– Speed. That the shipments reach their destination in the shortest possible time and without the need for added costs. This is something that can be achieved by optimizing routes and analyzing all the information in real time to assess the most pertinent decisions. Speed is another of those criteria that consumers take into account when ordering or buying a product.
–Hours of service. This is also another area in which we must improve. The collection has to remain flexible, but at the same time it is necessary to control that the shipment is at the destination and know when it is delivered. In other words, all the parties involved must be coordinated.
– Ease of return. Another logistics problem for many companies is returns. In this sense, we must give the maximum facilities to customers. On the other hand, these operations should not entail an additional cost.
All these inconveniences can be solved through digital transformation in logistics using blockchain technology.
Advantages of blockchain technology in logistics.
The main achievement of blockchain in logistics is that it is making it more efficient and transparent. Its ability to act as a guide makes it a perfect tool to facilitate the tracking of shipments, global contracts, payment processing … etc.
Blockchain provides a comprehensive solution:
-A clear improvement in transparency. The data and information network is managed faster and more securely. Thus, the customer can have real-time information about his order and know when he can go to pick it up or when it will be delivered. In the same way, the company calculates each movement and can act on possible changes or problems that may arise.
-Improves contact between companies. Sometimes it is not a single company that is responsible for the shipment, retention and delivery of the product. You can have an external transport company (if, for example, the shipment is to a remote area) or with small distribution points that act and work independently. So that the flow of trust and information is not cut off, blockchain technology offers the possibility of close contact between companies and all incidents, changes or news that arise can be notified. All in a secure way and on a common network.
– Total security in payments. Probably one of the most important points, and this is not only an ease for the customer. It is also the case for the company itself, either when it comes to making and managing its own shipments or when it comes into contact with third parties for transport or storage.
– Management processes are improved. Simpler business and strategic management. The ease of contact, the transparency in the shipment and other factors help to satisfy the needs of the clients. Mainly, because they have accurate information about their orders, delivery times, reliable reviews from other users … etc. Precisely all the problems that the older logistics models presented.
– Cost reduction. Blockchain technology allows building a cleaner, more current and safer information network. All these benefits allow companies to reduce costs (extra security expenses, monitoring of shipments, paper delivery note … etc.).
The digital transformation in logistics companies is an unstoppable reality. And blockchain technology is its greatest exponent. A competitive advantage today and a must for warehouses of the future.
At iCommunity, we know that the key is not to invest to invest in revolutionary systems, but to study in depth the needs of companies, assess the possibilities and evaluate the return that each innovation will have.
Our solutions provide real benefits, which can boost your company by making it more profitable and competitive.
In the following video you can see an example of how we work and how we transform the Estrella Galicia value chain, one of the most relevant references in its sector.
And the impact on your business.
Do you want to know how to apply the potential of blockchain in your company quickly and economically? Tell us about your project and we will advise you without obligation.