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Realizing the True Value of Logistics in Manufacturing with Digital

Updated: Aug 2, 2023

The manufacturing industry faces increasing pressure to reduce logistics costs and maintain a competitive edge. According to the National Association of Manufacturers survey, supply chain management is a primary business challenge for 65.7%1 of respondents. The growth of e-commerce, increased demand, and skilled labor shortages have further exacerbated the need for efficient supply chain operations and cost control.

Manufacturers must leverage digital solutions to address these challenges to streamline their processes. This article will explore the challenges demanding the digital transformation of logistics in the manufacturing industry. We will discuss the latest digital trends and the benefits of adopting them.

Logistics and transport management challenges in the digital era


The digital age has brought forth many challenges for logistics in the manufacturing industry. Some of these obstacles include:

  1. Increased global competition: In the last 25 years manufacturing companies have been facing competition from all corners of the world. However, navigating offshoring involves hidden costs and risks that can be effectively managed through the adoption of technology or nearshoring strategies.

  2. Shorter product life cycles: Keeping pace with rapidly changing consumer preferences is difficult for manufacturing companies. They need an agile supply chain to speed up their production processes.

  3. Workforce skill gaps: The increasing adoption of automation, robotics, and other digital technologies across the manufacturing workflow has created a demand for skilled workers. Companies face the challenge of finding workers with adequate technical expertise.

  4. Supply chain complexity: Due to the last 20 years' megatrend of globalization, we now live in a complex manufacturing landscape with interconnected supply chains. Manufacturing companies need to optimize their supply chain operations to control costs.


Building a Resilient Supply Chain for Manufacturing Industry


Even though moving things from one place to another is yet a “non-digitized” task, DIGITAL can empower the physical world. Erasing the barriers between the digital and physical world is the need of the hour for manufacturers.

Technology can help address the challenges of cost, competition, and complexity. Adopting the latest digital trends is critical to support smooth logistics operations and staying ahead in today’s digital landscape.

Time’s ticking, and some of the key digital trends top-notch manufacturers are already implementing to sustain the digital disruption in the logistics industry are:

  • Advanced Analytics: Advanced analytics tools help manufacturers gain insights into logistics operations. They can quickly detect discrepancies or bottlenecks in the production process and take corrective action, saving time and cost.


  • Internet of Things (IoT): IoT can enable manufacturing companies to monitor and control the supply chain. It enables real-time tracking, collects valuable data during transit, and allows supply chain managers to respond to changing conditions remotely.


  • Robotics and Automation: The adoption of robotics and automation of supply chain management helps reduce human errors and streamlines production processes. It increases efficiency, reduces costs, and improves customer satisfaction levels.


  • Artificial Intelligence (AI) and Machine Learning (ML): AI and ML can assist manufacturers with predictive maintenance, quality assurance, demand forecasting, and supply chain optimization.


  • Cloud Computing and Big Data: Leveraging the power of cloud computing enables manufacturing companies to store and access large volumes of data remotely. It helps them make faster decisions by providing real-time visibility.


  • Blockchain Technology: Implementing blockchain solutions can enable secure and transparent data-sharing among all supply chain participants. It ensures better traceability and more accountability.


Digital Transformation logistics


Benefits of digital transformation of shipping and logistics management


Embracing the digital transformation of logistics in the manufacturing industry has numerous advantages that greatly outweigh the challenges presented by the digital era.

  • Increased efficiency: Streamlining SCM processes through automation and IoT integration ensures optimal use of manufacturing resources and high productivity levels.

  • Enhanced agility: Manufacturing companies can leverage digital technologies to quickly adapt their logistics to changes in customer requirements and market conditions.

  • Improved decision-making: Access to real-time data provided by digital technologies allows supply chain managers to make more informed decisions.

  • Better customer experience: By harnessing digital technologies, manufacturing companies can offer customers better products, faster delivery, and seamless customer experience.


Logistics software driving digital transformation in the manufacturing industry


Reliable logistics and transport software can transform logistics management for manufacturers. It provides an array of tools and solutions that streamlines managing fleets, organizing warehouses, tracking inventory, and monitoring load boards.

Transportation Management System (TMS)

A TMS system automates transport operations and assists with complex shipping and on-demand transport requirements. It helps manufacturers optimize costs while efficiently handling time-sensitive delivery of goods.

Unlocking Efficiency for Manufacturers with Digital Transformation of Logistics:


With the right transportation management system, manufacturers can unlock the full potential of a digitally-enabled supply chain to stay competitive in today’s market. Easy4Pro offers a comprehensive solution designed specifically to provide visibility into every element of the supply chain operations. It helps identify supply chain bottlenecks, streamline logistics processes, enhance decision-making capabilities, and ensure efficient resource utilization.

Ready to unlock the full potential of your manufacturing logistics through digital transformation? Embrace the future of efficient supply chain management and stay ahead of the competition. Get started today by implementing innovative technologies and streamlining your processes. Reach out to our expert team for personalized guidance and take your logistics to the next level!






Source:

1. NAM


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