Smart logistics and 4 benefits of logistics automation

Logistics is one of the most important and costly parts of the supply chain, and for several years now, major companies worldwide in logistics, like DHL, have been thinking about reducing these costs and increasing their profits. One practical solution for this is smart logistics, which starts from the initial stages of logistics like warehousing and continues to the final stages of logistics, namely the last-mile delivery. This topic is so important globally that many logistics experts consider smart logistics the only way to ensure timely delivery of orders to customers in the next five years. In this article, we define smart logistics and how to implement it. Stay with us.

What is Smart Logistics?

Smart Logistics (Smart Logistics or Intelligent Logistic) refers to the use of technologies such as artificial intelligence, the Internet of Things (IOT), and others that are applied in various stages of logistics. In fact, smart logistics means:

Optimizing logistics processes by utilizing modern technologies to reduce logistics costs

But why has the use of these technologies in logistics become so important?

4 Key Benefits of Smart Logistics

In most industries we deal with today, smart technology is one of the most important factors that improve the performance of that industry. The logistics industry is no exception and is rapidly changing. We recommend checking out the article "Logistics Updates" to review the latest changes in logistics in recent years. But the benefits of smart logistics; smart logistics offers the following advantages and benefits:

Cost Reduction

By implementing "smart logistics solutions", costs such as:

• Warehousing costs
• Labor costs
• Capital holding costs
• Product packaging costs
• Order delivery costs

are significantly reduced. According to a report by Forbrs:

Smart logistics in warehousing has reduced warehouse costs by 18 percent

Reduced Order Delivery Time

Loyal customers are the most important asset of any business. One of the main concerns of online business owners is increasing customer satisfaction. According to research conducted on customer behavior by FixLastMile, 27% of buyers have canceled their orders because same-day delivery was not available. Given this statistic, it can be understood that reducing order delivery time has a direct relationship with customer satisfaction, meaning:

Faster delivery = More satisfied customers

But how do we reduce order delivery time? Smart logistics is one of the most important steps in increasing customer satisfaction. You can significantly reduce your order delivery time by using logistics software like Logiico. To see the features of Logiico software, click here.

Increased Performance Monitoring

One of the most important benefits of smart logistics is increased monitoring of fleet and employee performance. With the increase in the number of orders and consequently the increase in the number of fleets, controlling and monitoring fleet performance using traditional methods is almost impossible. Smart logistics allows you to monitor your fleet at all times with minimal cost. Logiico fleet management software is one of these smart logistics solutions that allows you to view your fleet's location on a map at any time and report on your drivers' performance.

Increased Accuracy in Order Delivery

The worst things that can happen in product delivery are incorrect delivery or product damage during delivery. It may seem that this only imposes the cost of re-delivery on the business, but you should know that the main damage is to your brand. Because a mistake in order delivery may lead to the loss of that customer or, in some cases, the loss of a group of customers. Always remember that:

In order delivery, the first mistake is the last mistake!

But with smart logistics, these mistakes are almost reduced to zero. Because the source of these mistakes is usually human error, and with smart logistics, these mistakes rarely occur. Well, so far we have understood the benefits of smart logistics and realized that smart logistics is one of the global trends. But how do we make logistics smart?

Different Solutions for Smart Logistics

You have certainly heard the phrase that we are in the age of communication and have felt its effects in your life. Effects such as the widespread wave of online shopping, virtual education, and more that we deal with daily. Large internet companies, with the increase in order volume and the intense competition in online businesses, face two general solutions:

• Increase capacity (human resources and equipment)
• Increase efficiency and improve the performance of existing capacities

Leading companies in online businesses like Amazon have chosen the second solution. Because by paying minimal costs and using various smart logistics solutions, which we discussed further, they have achieved tremendous profits.

Electronic Logistics

Today, the internet provides a platform for greater access to accurate supply and demand information (instead of predicting it). Electronic logistics has had a significant impact on the suppliers and distributors of large companies in logistics. Companies like Cisco, Dell, Oracle, and Intel have achieved massive savings in their costs this way.

Internet of Things Logistics

The emergence of the Internet of Things and its numerous applications in the industry has led to special attention being paid to investing and allocating budgets to this technology. Developed countries, by investing in this field, have been able to create significant savings in their current expenses. Therefore, by employing the Internet of Things in logistics, the method of supply and distribution of goods has taken on a new dimension.

Artificial Intelligence Logistics

Smart logistics does not mean the complete elimination of human resources, but rather the optimal use of human resources throughout the process.

Artificial intelligence solutions in logistics can be summarized in the following points:

• Smart resource management
• Reduction of human error
• More accurate future predictions
• Route optimization
• Improved customer service

Conclusion

Logistics is one of the most costly parts of the supply chain. But how do we reduce these costs? One of the best solutions is smart logistics. By implementing smart logistics, in addition to reducing costs, you can decrease your order delivery time and double your customer satisfaction. But how do we make logistics smart? Solutions such as electronics, the Internet of Things, and artificial intelligence have helped major companies in logistics and brought them significant profits, and it is predicted that in the next 10 years, SME companies will also inevitably move towards smart logistics.