We were recently invited to expose our understanding of Digital Transformation when applied to Logistics & Transportation Operations. This article is a brief of the vision we outlined at the event in case.
Digital Transformation Doesn't Equal Technology
Instead, only a holistic strategic change affecting all areas and parties involved makes up for a real Digital Transfomation, with technology as a key catalyst. As such, this change must be led by management themselves and aimed to achieve the features shown in the former slide.
"a holistic strategic change, [...] with technology as a key catalyst."
OK, but What for Logistics?
It basically comes down to turn these operations into an Added Value Area, either by
- contributing to the global profit of the company by reducing operational costs,
- or contributing to the potential growth of the business by improving customer experience.
OK, but How to Proceed?
As if it were an independent business off itself, we shall overtake an strategic analysis of the Department, and through a Balanced ScoreCard build a complete Map of Activities with actions, needs and KPIs, and then, conceive and search for the technologies and platforms that may lead us to fulfill all these requirements.
We can currently distinguish between 2 generations of Digital Transformation technologies.
With the current state of the art and the overwhelming speed of changes, we believe that all managers in big companies Logistics should be aware of all these and not to look aside.
If they already haven't, we encourage them to initiate a deep process of transformation, adopting a proactive attitude towards new technologies and seeing this as an opportunity. Otherwise it is hard to predict what the future of their Departments will look like in just a few years.
Thank you for your interest. More information on Digital Transformation for Logistics at Altia Logistic.