“Work smart. Open to innovations. Boost competitiveness through new technologies.”
Given today’s rapid technological change coupled with flexibly adjusted consumers’ behavior, customer demand keeps increasing. In the fiercely competitive environment, the odds are instantly against logistics service providers who are unable to make adjustments in a timely manner. What is important is not sheer size of investment in innovation or technology but also the ability to locate high caliber human asset to ensure that the company is able to overcome obstacles and succeed in grasping opportunities before its rivals. The following 3 skills most sought after by logistics service providers in 2019:
Both companies or shops and online retailers are all striving to have their products more swiftly delivered to customers with more flexibility. This is because consumers often make their decisions to buy based on factors such as swift delivery and inexpensive or free delivery fee. While these factors are of benefit to buyers, they are considered a challenge on the part of the logistics industry which is under pressure from various factors and is struggling trying to survive.
One option to ensure their ability to meet customer demand is a smart use of technoloty for maximized business efficiency be it in the area of data collection and analytics, automation or Internet of Things (IoT). Aside from efficiency enhancement and creation of innovations, digitization also proves a means to reduce costs. Newcomers in the logistics service industry opt for digitazation as a means to penetrate the market that can still make profit be it through the use of digital technology, joint investment or selection of business partners.
Given the causes mentioned above, demand in the logistics industry for personnel who are well versed in digital technology or IT has shot up. The qualifications sought after are in the areas of data analysis, system management and system application for the design of new service provision models, among others.
2. Blockchain Technology
Because digital data is found to entail security risk with regards to data storage and maintenance, blockchain technology has been developed to safeguard against violations by those of whom are up to no good.
What’s interesting about blockchain technology is its ability to create user accounts that separate administrative mandate from data access while the network is under the care of many concerned parties to ensure that data are safe from theft or damage. All these are designed as measures to increase security and transparency for data stored in the blockchain. Such data are reliable as well as accepted by users be they data on purchases and sales, payments, inventory, delivery status or others.
Blockchain technology can additionally enhance freight tracking all through the entire supply chain so that freight owners are informed of the transport status while important data are better conveyed to parties concerned such as loading and unloading terminals, transport route and rules and regulations that logistics service providers should know. Likewise, logistics service providers will be able to notify freight owners of essential data such as power of vehicle engine, promotion and price. In other words, the entire transaction is carried out via blockchain technology without the interference of middlemen or markup in the form of operating fee.
3. E-commerce Booming
Amazon Prime’s ability to deliver goods within two hours has set a new customer demand normal. Perhaps, there is no need to discuss whether this is too ambitious a response; or not, to meet customer needs because, in the final analysis, the expectation that one’s needs are met has now become the norm.
Present consumers’ easy access to the internet coupled with an easy decision to buy based on price guarantee and swift delivery promise that is made by just a few touches on the screen of a mobile phone has brought about the rapid market share by e-Commerce market in comparison with retail market as evidenced the 23.2 percent growth rate in 2017 as against the year before. Thus, it is a challenge for logistics service providers to narrow the gap between their current service capacity and customer demand.
Major retailers opt for the strategy of setting up distribution centers near customer groups to facilitate delivery within two to three days. At present, distribution centers have begun to be downsized while their numbers have increased and the locations are closer to customers to enable the same-day delivery strategy, which means a smaller size of purchasing order, higher inventory turnover and, likewise, a more broadly scattered supply chain network.
Among desirable properties are comprehensive knowledge of e-Commerce, swift analysis aptitude, knowledge and understanding of numerical and trade analysis necessary for a timely strategic plan modification in tandem with customer needs.
“Working smart. Being open to innovations. Boosting competitiveness through new technologies.” This is the summary of Logistics People 2019.
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