Leading logistics’ digital transformation

The digital transformation of the logistics sector will not only disrupt the industry but offers an opportunity to reduce inefficiencies and its impact on the environment. Our CEO, Ryan Lucas, investigates.

Since the beginning of our digital age, the internet has changed the way we do business. Team this with changes in the world’s demographics, the growth in cross-border sales presents an opportunity for logistics to challenge its historical approach to operations. Moreover, these changes will bring essential social and environmental benefits by increasing efficiency, cutting energy consumption and reducing emissions.

World Economic Forum research indicates that up until 2025, digital transformation could create a potential global share of $1.5 trillion for logistics operators and a further $2.4 trillion worth of societal benefits. In other words, the industry needs to take notice and come together to prioritise digital transformation, given the potential for a significantly higher value for society.

Knowing this, we have invested in technologies to place it at the fore of digital transformation and will soon launch a platform to revolutionise operations and customer service. Within the research and development process of its new digital platform, we have identified five key themes central to the digital transformation of the logistics industry over the coming years:

  • Information services

Data is at the heart of logistics and through the use of a control tower and analytics digital transformation will allow operating costs to fall and operations to improve.

  • Logistics services

Cross-border digital platforms will mean that trade will grow due to better customer service by meeting consumer demands and offering faster same-day delivery services.

  • Delivery capabilities

Gazing into the crystal ball, new delivery capabilities will allow logistics to take advantage of digital trucks and drones to find more efficient ways to deliver shipments.

  • Circular economy

A circular economy will allow for a more sustainable product lifecycle helping reduce the logistics’ impact on the environment by reducing CO2 emissions[1], air pollution and waste material.

  • Shared logistics capabilities

Through shared warehousing and transport, asset utilisation in the future will be increased to improve operations and cost-efficiency. A recent example of this is the launch of the streamlined global outbound service Yodel is now able to offer UK retailers, thanks to its partnership with DG International. By sharing capabilities, the Yodel international offering uses our range of flexible global logistics solutions, including road and air freight, sortation and international customs expertise. All with the added benefit of global customer service support and end-to-end tracking using a single reference number, ensuring accurate information at every stage of the shipment.

Over the coming years, the race to build a dominant global platform will transform customers’ experiences of logistics and will be central in determining which organisations will die or thrive in a digital logistics world.

[1] According to the World Economic Forum, logistics contributes 13% of all emissions globally.