Smart Logistics: an effective lever to reduce company costs and encourage growth

In the logistics and transport sector, interfaces are increasingly important.

Smart Logistics reduces costs along the entire supply chain. This is the result of a study conducted by the consulting firm PwC. What exactly does this term mean, and what are the concrete implications for logistics processes? This blog article shows the importance of smart interconnections in logistics and transport and how to implement them in the company.

In recent years, digitization has led to significant process optimization in the logistics sector as well. Thanks to numerous technological innovations, it has been possible to improve various processes and activities.

For example:
– artificial intelligence is increasingly being used in warehouse logistics;
– the picking of goods is increasingly automated,
The digitization of the pallet exchange process, which is still partly error-prone, has increased significantly.
These are just a few examples that demonstrate how digital has already simplified and speeded up processes.

Smart networks are the key to an efficient supply chain.

It is not just about digitizing but also about linking processes together. The term Smart Logistics, therefore, indicates intelligent interconnections between transporters, shippers, producers and end customers, as well as the programs and systems they use. On this basis, interactivity and efficient planning will be possible even outside your own company environment.

These subjects, in fact, rarely work alone but usually collaborate with a network of partners such as shipping companies, transport companies or storage service providers. Therefore, a network of this type has an economic advantage, especially for manufacturing industries that no longer manage transport within the company and, for example, no longer have their own fleet of vehicles.

At the same time, however, there is an increase in the number of partners and outsourced work processes that companies must coordinate to ensure goods delivery. It follows that, in the future, it will be even more important to ensure the total interconnection of systems both inside and outside the company. For this reason, Smart Logistics is the key to intelligent logistics.

An efficient supply chain facilitates cost reduction.

A study conducted by the consulting firm PricewaterhouseCooper (PwC) and published in April 2020, more than 1,600 business executives from 33 countries were interviewed about future market trends. Participants stated that the main task for the future is to increase the efficiency of the supply chain. To successfully react to the needs of the ever-changing market, per.

Due to the COVID-19 pandemic and its repercussions, fully interconnected supply chain ecosystems are needed.

The companies interviewed stated that they have invested heavily in the supply chain’s quality and efficiency, with a consequent increase in turnover and a reduction in costs of approximately 7% in the 2019 financial year compared to the previous year. Over 50% of respondents said that investments in supply chain optimization have had a positive or even very positive effect on their business. These companies have identified Smart Logistics as the most effective lever for cost reduction and growth. 59 per cent of executives surveyed plan to continue investing in smart logistics.

Not just theory: Smart Logistics in practice

According to the PwC study, supply chain efficiency is also about offering loads on a fully interconnected transport market to get the best price and find a carrier in the shortest possible time.

The matching is facilitated by digital providers who guarantee automated processes between the customer and the transport service provider.

Intelligent support even in times of uncertainty

The PwC study also shows that intelligent connections in the transport and logistics sector have never been more important than they are now. Nonetheless, “smaller companies are often held back by too high investment costs,” says Stefan Schrauf, partner and head of Operations and Supply Chain Europe at PwC. It is not just an economic issue. To ensure greater supply chain efficiency, the consulting firm PwC recommends integrating new IT technologies into the company and radically transforming the processes in use.

By connecting to this digital network, companies can transform their logistics network into a competitive advantage to better meet the market’s different needs.

Especially with the COVID-19 pandemic, we have realized how quickly and drastically the market situation can change. Therefore, it is essential to invest in your supply chain’s efficiency to continue to operate in an agile and flexible way on the market.