Digital logistics provides competitive advantage, efficiency and profitability to the companies by improving supply chain, providing customer effective centric solutions and enhancing efficiency. Digital logistics allow various companies and supply chain logistics applications to closely integrate with labor management systems, core warehouse and transportation systems to enable novel process models and ensure fulfillment excellence. It impacts not only the cost side of the value equation, but also spurs the growth through the ability to deliver customer-focused and personalized logistics, with exceptional customer satisfaction and faster cycle times. The digital logistics industry has opportunities to drive change in both operations and customer engagement including intelligent pallets, omni channel commerce, slot optimization, mobile order management, and predictive maintenance. Companies embracing digital logistics will achieve functional quality in three key areas including distribution, transportation and labor and resource management. Distribution includes real-time warehouse management system (WMS) technology and adoption of improved fulfillment processes. Additionally, various companies have taken advantage of the opportunities to significantly increase employee retention, and work productivity that is available through advanced labor management solutions.
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The digital logistics market is propelled by a web-based enterprise logistics applications that enable optimization and collaboration. It also leverages a central logistics information that provides clarity for the entire logistics operation of the enterprises. Another driver for the growth of the digital logistics marketare rise of the digital technology across industry and technologically sound consumers. The onset of e-commerce has allowed consumers, to compare prices with just the swipe of a smartphone and can source products from anywhere in the world. As, consumers become more inclined towards digital services, they expect to receive the same flexibility and superior quality of service in logistics industry.
Factors such as lack of digital infrastructure, privacy issues and security threats could pose challenges for the digital logistics market. However, various prominent companies including IBM Corporation and others in the digital logistics domain are investing in their digital infrastructure significantly to overcome these challenges of the digital logistics market.
The growth of the digital logistics market could enable supply chain tracking that will help companies to make sure that they have the stock available at all the times. Furthermore, various digital logistics solution providers are evolving their products to cater the customized demand of the customer. Further, various digital logistics solutions based on cloud technology are available in the market for warehouse, transportation and labor management requirements.
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Digital logistics market can be segmented on the basis of solution, systems, end-use industry, and geography. On the basis of solution, the digital logistics market can be segmented into transportation management, warehouse management, logistics networks, and others. Furthermore, on the basis of system, the digital logistics market can be segmented into fright management system, truck management system, fleet management system, and others. On the basis of end-use industry, the digital logistics market can be segmented into Government, aerospace, defense, automotive, oil & gas, retail, manufacturing, healthcare, and others.