Digital Transformation in Logistics and Transportation:What, Why and How

By admin_user In Digital Transformation, Digital Transformation in Logistics and Transportation On December 12, 2022

Digital Transformation in Logistics and Transportation:What, Why and How

Efficiency, optimization, speed, and time are the top four elements, the logistic and transportation industry workaround to achieve or meet it. In order to maintain all these elements, the logistics and transportation industry has to keep pace with the ever-evolving and shifting market landscape. The key to being competitive in the market, according to the most recent trends, is digitization and beginning the process of digital transformation.

Digital transformation reshaping and redefining the business structure and workflow to meet the market changes and variable customers requirement. We are witness to how swiftly industries are turning toward and leveraging the key benefits of digital solutions. Even logistics & transformation companies have also started their journey of adopting and setting up a digital environment at a higher speed.

Digital Transformation in Logistics and Transportation

According to Globe News Wire, By 2027, it is predicted that global spending on digital transformation in the logistics industry will reach $84.6 billion.”

In this blog, we are going to discuss the role of digital transformation in the logistics and transportation industry. We’ll also learn more about the what, why, and how of the logistics and transportation sector’s digital revolution.

What is Digital Transformation?

Digital transformation is the process of utilizing emerging technologies in the form of a solution, software, application, or anything that empowers you to recreate – or modify existing business processes, operations, culture, and customer experience. Keeping the pace through reimaging business and embracing digital solutions is known as digital transformation. 

Digital Transformation in Logistics and Transportation: Why is it Important?

The use of digital technology causes a dramatic shift in the business model, which is referred to as digital transformation. Digital transformation in transportation and logistics allows the industry to benefit from the evolution of technology to grasp a market that is changing quickly, customers’ expectations, and other key factors to gain a competitive advantage.

The underutilization of assets, supply chain effectiveness, connectivity, and visibility across devices and systems are all major issues that the transportation and logistics sector must constantly contend with. Walking on the path of digital transformation in transport services enables them to develop robust and scalable, and resolve a variety of problems. In this era of digitalization, maximum utilization of technologies is the only way of enhancing overall business efficiency, productivity, and market growth.

Digital Transformation in Logistics and Transportation

Key Benefits of Digital Transformation in Logistics and Transportation Industry Smooth Operations Enhanced Speed in lesser Time Enhanced Connectivity Bringing intelligence to business

Thus, digital transformation in logistics and Transportation holds an extreme level of importance to focus on four major pillars of it : efficiency, speed, time, and optimization. In this world where industries are experiencing the outburst of technologies, undergoing through digital transformation has become an imperative for the logistics and transportation industry too. 

In a recent survey with the tag Digital Industries Barometer, 2620 business executives from 11 different industries in 45 cities around the world were part of it. In this process measuring digital transformation by considering the top 5 areas:  innovation and entrepreneurship, financial environment, people and skills, development of new technologies, and ICT infrastructure.

Here is the result:

  • They found there are industries that show full confidence in digital transformation and that are Mining, Manufacturing, and Financial Services.
  • According to the digital Transformation barometer, Logistics & Transport has a 6.61 acceptance score for digital transformation, placing 

How Digital Transformation is Shaping the Logistics and Transportation Industry?

After the outbreak of the pandemic, It became difficult for industries to cope-up with modern challenges along with focusing on the ability to remain innovative. Here, industries felt the importance of digital transformation in order to become more robust in the process of catering their services and streamlining the entire workflow. Digital transformation benefit logistics and transportation industry by offering:

Digital Transformation in Logistics and Transportation

Integration of IoT in Supply Chain Management

Tracking and monitoring is the primary objective of IoT in the procedure of managing a regular supply chain. Industry can strengthen real-time location tracking, storage condition monitoring, forecast on arrival of products, and  boost transparency and visibility.

Route optimization is another way IoT technology can be utilized in supply chain management. IoT-based route optimization includes a smart product-service system approach. ROS is specially designed with the objective to set vehicle routes that will meet transportation needs while minimizing cost and/or other negative effects on society and the environment.

Logistics and transportation companies can minimize overall costs by properly planning one or multiple routes. Using IoT-powered devices, you can identify where goods have reached and determine their cause. To speed up the supply chain process, businesses choose a different route based on convenience. An advanced route optimization solution will thus lead to lower fuel costs, higher productivity, and a reduction in overtime costs.

Behaviour Analytics & Customer-Centricity:

It is no longer a nice-to-have choice, but rather a must for existence, for businesses to shift from product-centric to customer-centric solutions. Through digital transformation, the logistics and transportation industry can understand consumer behavior and expectations, mapping the digital customer journey, how digital-enabled customer centricity is in the CPG industry, and so on.

Embracing Emerging Technology-Based Solutions

Digital transformation in any area is a big thing to consider. There is a huge list of technologies that offer value to organizations and businesses to rethink and reinvent the procedure of executing operations and activities. This change enables the logistics and  transportation industry to accelerate innovation in various areas, make fruitful business decisions, visibility, and control inventory and supply chain management.

Digital Transformation in Logistics and Transportation

Concluding Lines on Digital Transformation in Logistics and Transportation

Digital capabilities and information excellence empower the logistics and transportation industry to close the gap and transform toward a better customer experience, develop new business models and overcome the modern challenge to a greater extent. Are you from the logistics and transportation industry who is struggling to achieve 360-degree productivity and operation optimization? Then Rejig Digital is here for your help!!

With its digital transformation services, Rejig Digital helps industries such as manufacturing, retail, and logistics adopt IoT and augmented reality solutions. Do you want to grow your business under our expert guidance? Drop us a quick mail at 

Digital Transformation in Logistics and Transportation