Often, business owners, especially those of smaller scale assume that before they can invest in logistics or smart logistics, they need to first expand their coasts, gain enough visibility, and make crazy profits.
Or perhaps, they need to get to a certain level of growth before they start doing business the smart way.
No one needs to be a logistician before they can benefit from logistics because this is the part of their business operations that deals with the supply of raw materials and the delivery of the finished goods to their target audience.
Do you want to gain relevance in your different business niches and the business world?
Then you have to subscribe to a smarter way of getting your inventories, producing just the right number of products and distributing them across to people who need them.
In this blog post, you will learn what logistics is, how it evolved from being just logistics to smart logistics, the objectives, and benefits of investing in smart logistics.
The Meaning of Smart Logistics
In one of the opening paragraphs of this article, we identified traditional logistics as the procurement of the materials needed for production, the production, and the movement of goods from one place to the other.
All of these seem to cover everything that has to do with production and sales but why is there a need to have “smart logistics”?
Or when does traditional logistics become smart logistics?
Interlake Mecalux gives us an in-depth overview of what smart logistics is all about.
Smart logistics, according to Interlake Mecalux is the adoption and implementation of new technological solutions like AI, big data, blockchain, or any other database technology to manage inventories, enhance production, optimize warehouse processes, automate work orders, engage in smart deliveries, meet the need of customers, and improve sales.
From all that’s been said, two keynotes stand out:
- Innovative technology
In other words, an ordinary logistics operation becomes smart when it subscribes to innovative technology and automation.
As we progress into the new millennium, it’s high time organisations that still operate traditionally transcend into the spirit of the millennials. They need to develop new strategies that will help them monitor and respond to market trends, track real-time information and manage their logistics operations through a network known as supply chain, right from the manufacturer and down to the final consumer.
The Evolution of Smart Logistics
Since the invention of modern technology, the word ‘smart’ tends to have gained popularity.
From smartphones to smart cars, smart wristwatches, smart TVs, and smart logistics, these days we hear things like smart shoes and clothes. The concept of “smart” suggests that a particular thing is either “clever”, “brilliant” or “intelligent”.
In other words, smart logistics is an intelligent, clever or brilliant way to handle your logistics operations.
How it all began.
The history of logistics dates back to the Roman and Egyptian empires, the eras of the first human civilisation, a period where people transported goods mainly for survival.
Another phase of logistics evolution was the 18th-century Industrial Revolution which brought about the invention of railways and steam power. Production increased and the expectations of customers experienced a notch.
The 20th century went through a series of globalisation and the adoption of technology like the media and the internet. It was during this period that the term ‘supply chain’ was introduced. Additionally, the transportation of the movement of goods through means like air, couriers, and sea gained visibility into the business world.
Since the outbreak of the Coronavirus Pandemic in 2020, business owners have found a better way to manage their logistics.
Today, we not only have a system where logistics operations can rely on the information of big data and AI but also digital stores where people can buy almost anything and have it delivered to their doorsteps by a logistic framework known as just-in-time.
The Objectives of Smart Logistics
Before investing in smart logistics, below are a few of its objectives that could spur you to contact an IT-inclined company like RockEye for your first smart logistics experience.
-> To build solid relationships within the organisation; as well as the chain of distribution.
-> To improve the experience of your customers.
-> To foster a transparent and healthier workplace.
-> To multiply sales.
-> To sustain a competitive position in your industry and marketplace.
-> To increase the efficiency of your supply chain.
One integral part of smart logistics is the supply chain, and that is why it is a recurring concept.
You cannot talk about smart logistics without referring to the supply chain; both work hand in hand.
In logistics management, supply chain simply refers to the chain of operations that oversees the process that raw materials go through before they are converted into usable products, and ensures that they get to the users.
Therefore, what smart logistics does to your supply chain is that it ensures that it is as efficient as it should be.
The Benefits of Investing in Smart Logistics
As businesses seek new ways to expand their supply chain networks, boost sales, retain customers and sustain relevance, they must adopt emerging technology that can help them attain greater heights operationally and financially.
Why you should invest in smart logistics.
The benefits of investing in smart logistics, without any doubt, have been a saving factor for modern-day business professionals when it comes to gaining visibility, streamlining work orders, saving costs, and achieving measurable results.
Below are a few of the benefits of smart logistics to a 21st-century business owner.
Automated work processes
With the advent of technology, automation makes it easier for business owners to organize all their warehouse operations into a single suite and operate from a central unit. It also schedules supplies and distributions, monitors freight movements with the data provided, saves time, and deletes human errors.
Smart logistics solves the challenges that are associated with warehousing. With the real data provided, business owners can make informed decisions about the right amount of goods to produce at a particular time as well as the quantity of goods to be stored. By extension, predictive storage also saves costs by deleting every atom of wastage.
Improved customer experience
In the world of business, there’s a gap between satisfying your customers and earning their loyalty, and as such smart logistics is a solution that bridges that gap. While your customers’ satisfaction is short-term and has to do with the spontaneous reaction that your customers show towards your services anytime they are happy, your customers’ loyalty is long-term. This means that they do not only remain customers but generate more customers.
Increased production and profitability
This happens to be one of the results of investing in smart logistics. What happens next after your customers have been satisfied? Your production and profitability levels will increase automatically. Guess what? That’s more money for you. Rather than spend your money on freight breakdowns and fixing manual errors, you can invest in other technology-based operational tools and expect a guaranteed return on investment.
Sustained visibility and relevance
Have you ever wondered why some of the popular brands or companies that you used to know, now seem to have gone into extinction? They probably didn’t find the secret to sustaining their relevance, after they must have earned it. With an innovation like smart products and smart services, you do only make your customers remain loyal to you, but engrave your name in the sands of time because of the quality and spontaneity of your products and services.
The word “invest” in the context of this blog connotes a deliberate effort to put your money into something with the expectation of getting a return on investment.
What do you say about investing in RockEye’s brilliant solutions such as our smart logistics? With us, rest assured that your investment is safe, while you expect a bountiful ROI.
Visit our homepage at https://www.Rockeye.Africa/ to begin a new way of doing business like the 21st-century business professionals.