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Digital Revolution in Freight Services

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healy pitts
Digital Revolution in Freight Services

The digital revolution is being observed all around us - in every business or household. You can no longer ignore it, if you think back to the past and look to the future, you will find that you are right in it.

Since globalization, digitization in the logistics sector is one of the most important opportunities in terms of efficiency, new business models, better customer experiences and sustainability. We will describe in this blog what this means for the future, according to a report on logistics trends recently published by DHL.

logistics and green environment

1. Focus on the customer

In today's digital environment, the focus on the customer is of utmost importance. Customers have the power to decide where and how to buy products and services, and which ones. Transparency, accessibility, ease and speed of delivery and returns are important topics that have created new business models to ensure customer focus.

The omnichannel strategy will remain a major trend for the future. While the B2b sale is doubled compared to the B2c sale, companies will have to adapt to this evolution. In terms of logistics, consider flexible order management networks, inventory visibility solutions, proximity-based cost models for shipping, and innovative delivery solutions up to the last mile.

New solutions are also needed in the field of fresh produce to meet the needs of customers. Consumers are also doing their daily shopping online (a 70% percentage is expected in the next 5 years) and online sales will increase dramatically.

In order to meet customer focus requirements, you will need to focus as much as possible on the needs of consumers. The trend of "Connected Life" with smart technologies in and around the home will continue to be important in the future.

The last aspect, "servitization", helps manufacturers with a strategic shift of products to a situation where service is central. This creates new business models that are much more focused on consumers.

2. Sustainability - becoming a zero emission industry

Agreements are being made around the world every day to reduce CO2 emissions. Gasoline and diesel will be minimized in the next 10-20 years. Environmentally friendly solutions will be put in place to reduce residual waste. Much attention will also be paid to this problem in the field of logistics. DHL, for example, wants to become a zero emission company by 2050. Sustainability is not just a goal in transportation, but also in warehousing. The fleet & ecological logistics as well as smart containers are just terms that will become very important in the future.

3. Technology - a catalytic innovation with a critical point in cost performance

So much is currently possible in terms of technology. Each person and everything is connected to the other; Predictability, big data, declining technology costs, and increasing IT performance mean that supply chains are becoming smarter, faster, more agile, and more predictable. The adoption of technology is currently minimal, but the long-term benefits are enormous. The possibilities of IoT (Internet of Things) in logistics are estimated at 1.9 billion US dollars. One of the other opportunities is the new generation wireless. New wireless networks can be a catalyst for large-scale IoT deployments in logistics, and connected logistics will enable a whole new host of smarter supply chain capabilities. AI (artificial intelligence) becomes much more important than in the past, and the same goes for the blockchain. Blockchain removes important layers of complexity from the global supply chain. Various developments and start-ups are currently underway and the first results are positive, but the real success has yet to be proven. The adoption of the blockchain could redefine centuries-old processes. Blockchain removes important layers of complexity from the global supply chain. Various developments and start-ups are currently underway and the first results are positive, but the real success has yet to be proven. The adoption of the blockchain could redefine centuries-old processes. Blockchain removes important layers of complexity from the global supply chain. Various developments and start-ups in shipping industry are currently underway and the first results are positive, but the real success has yet to be proven. The adoption of the blockchain could redefine centuries-old processes.

4. Employees - creating the collaborative human-machine workforce of the future

The automation of human tasks (including repetitive and time-consuming tasks) is one of the main pillars, including the digitization of logistics and transport. One of the first things that often comes to mind is job cuts, but automation is also helping to create jobs in completely new areas of logistics.
The market also requires automation (faster delivery, lack of staff, etc.). This has been the case in China for several years, which means that the country is often at the forefront of robotization. The first robots also appear (on a larger scale too) in warehouses in other countries. As a result, different jobs in the digital domain will be required and new work models will be created.

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