The 6 Ways Technology Is Crucial to Logistical Success

“Logistics” is a big word. It encompasses wholesaling, distribution, carriage, warehousing, transportation, 3PL, storage and more!

More importantly, each aspect is part of an increasingly competitive market. So how do you capitalize on the opportunities?

For such a complicated sector, the answer is simple: Digital. Get your systems in order and you’ve greatly increased your profitability.

In our experience, there are six key areas in which technology is integral to logistical success:

  1. Cost reduction. Technology is like any other part of a business in that all investments need a well-defined ROI. But in logistics, the narrow margins make tech costs even more of an issue. Thus you have to minimize tech costs while also using technology to save money, for example through process efficiency and clarity of information.
  2. Automated tracking. The key to an efficient operation is real-time tracking. The tracking must be both internal and external to customers and suppliers. This can be complex, involving web portals and an array of mobile and handheld devices. Plus customer expectations keep getting higher. But it’s definitely achievable with the right technology leadership.
  3. Streamlined processes. To keep costs down, it’s critical to have a seamless integration and standardization of internal and external processes. When it’s done right, it also minimizes errors and maximizes simplicity. The focus must be on scalability and achieving tight connections between customers and suppliers.
  4. Flexibility. With logistics, “flexibility” means both expansion and contraction. You must be able to rapidly and efficiently take on new business or acquisitions. And you must be equally efficient when taking down operations in order to maintain profitability, providing financial stability and confidence at every point of the business cycle.
  5. Disaster planning. Technology outages—whether due to cyberattacks, some natural event, or a freak accident—will happen if you don’t prepare for them. An outage can lead to major losses and lawsuits, as well as reputational damage. The necessary preparations need not be expensive or even that complicated (think: two-factor authentication), but they do need to be properly configured and rolled out.
  6. Strategy. However clear your business strategy, you won’t get far unless you have a clear tech strategy to match. That means understanding:
    • Your current technology capabilities
    • What you’ll need to achieve your objectives, and
    • A roadmap for getting there. See our Technology Roadmap for Growth Knowledge center

Of course, this is a particularly difficult moment for businesses. But we believe that the current stresses are only accelerated existing problems. Less efficient businesses are struggling, while those with better technology leadership are scaling up. These six areas are the right place to start if you’re looking to see how you can do better.

Freeman Clarke is the largest and most experienced team of part-time (we call it “fractional”) CIOs and CTOs. We work exclusively with ambitious organizations and we frequently help our clients use IT to beat their competition. Contact Us and we’ll be in touch for an informal conversation.