The symbiosis between algorithms and humans will create opportunities to improve the logistics industry.

The logistics industry has changed significantly over the past 10 years and is in a period of digital transformation. The driving force for the supply chain to develop is the booming e-commerce, as well as the impact from the Covid-19 pandemic.

From cloud computing, robotics, AI (artificial intelligence) to IoT (Internet of Things)… logistics experts must fully understand the wave of breakthrough technology, promoting technology to develop faster. Even as global e-commerce explodes, blockchain continues to be seen as an enabler of supply chains and logistics.

A successful business in the logistics sector depends on reliability. AI always solves the most complex operational challenges such as: Route optimization, accurate prediction of capacity and demand, intelligent physical automation… The logistics industry is also embracing the emergence emergence of robotic workflow automation (RPA).

(Application of AI in logistics digital transformation helps businesses increase competitive advantage)

AI enables RPA to tackle complex, unstructured data formats and processes. According to a study by logistics trade association MHI, 79% of experts expect AI to become a core supply chain competency by 2022, 88% believe it will help improve risk management and forecast.

According to PwC’s survey results, 37 out of 80 chief financial officers (CFOs) responded, accelerating automation will be part of their post-Covid-19 strategy. As logistics companies digitize processes, they see transparency and flexibility driving the need for digital transformation even further.

On the other hand, thanks to the application of AI in the work process, customers will appreciate the benefits of fast delivery and service quality of that logistics company. These encourage companies to adopt more new technologies to enhance and improve processes.

As digital approaches become increasingly central to supply chain and logistics processes, companies are paying more attention to the human side. Digital systems need humans to build, maintain, and improve. Supply chain operations also require close and continuous cooperation between people and machines. On the contrary, if not paying attention to people, logistics businesses will encounter many problems. From a shortage of skilled personnel to a complete failure to use new technologies. In the coming years, companies need to adopt a people-centered innovation approach.

Logistics business leaders are focusing on promoting digital thinking, including: Establishing positive cultural norms, standardizing processes and continuously retraining human resources.

The most important thing in the digitalization process is to balance people’s work and life. The logistics industry and its chain of stakeholders should work together to encourage the creation of a connected business environment, with realistic and humane expectations. This will require adopting a new mindset, embracing the benefits of digitalization and creating more resilient, sustainable workplaces.

The logistics industry must adapt to the digital transformation era to develop. Not only because of imminent threats, companies also have to do this to increase their competitive advantage and make the most of opportunities.

(According to Tuoi Tre & Guft Business)