Digitization Playing Vital Role in the Growth of Logistic Sector

With the help of digitization we can find everything within our house on just one click as smartphones and tablets have now become a household name

New Update

Today in 21st Century, India is turning rapidly towards Digitalization. It refers to the use of digital technologies to change a business model and provide new revenue and value producing opportunities; we can say it is the process of digitally transforming a business.


With the help of digitization we can find everything within our house on just one click as smartphones and tablets have now become a household name. In recent years people have got the most comfort from the fact that now they need not to stand in queue for hours, they can do their work at home and just sit back and relax.

Effect of digitalization can be seen in every sector because it is a revolutionary change which is considered as a remarkable item. It has helped in expanding the reach of product to consumers with the help of smart sensors and communication devices for better ease and accessibility. Its effect can be seen in the logistics sector as well. Change is the new constant. The new methods of data collection and analysis have helped logistics industry to serve consumers with complete satisfaction.

It is going to be a drastic change in future because now it is getting more and more shipping orders than earlier as logistics is now being adopted as a third party for its orders by big corporations. With increasing progress in technology, there is a continuous demand for better products and services from consumers. The current customer expectations have increased like Reliable delivery times, Quality deliveries, Real-time tracking, Fast returns processing, Flexible and personalized services. So it has become increasingly important to improve customer satisfaction.


Logistic Sector depends on 7Rs which is as follows: Right Cost, Right Place, Right Product, Right Quality, Right Condition, Right Customer, Right Time. Obviously this aspect of speed and time isn’t new for the logistics and transportation industry. After all, the 7Rs of business logistics go back a long time: the right product/item in the right quantity to the right customer in the right condition at the right place on right time and at right cost, right? Now, if these 7Rs are carefully observed, it can be seen that if any of the above mentioned R is missing than the loss will be considered as irreparable.

The logistics sector has become more flexible, fast and reliable because of new technologies like document scanning, digital signature, RFID, bar code, electronic chips and radio frequency etc. The logistics industry has transformed a lot by digitally transforming itself since it has started using smart containers, real time weather data feed as well as GPS navigation which helps to track the path of freight and courier. Efficiency, security and safety insurance have been increased because of automated electronic data exchange from ship to ship and ship to shore.

With the increasing globalisation, logistics players in India have to face day to day challenges like fulfilling consumer needs and expectations by satisfying them through providing effective services. Technological innovations in logistics processes at different stages have reduced the pressure as young graduates are being hired with quality professional manpower. Adoption and utilization of technology has resulted in increased ability to communicate effectively with customers.

The buzz about 'Make in India’ campaign is drawing more investment, creating more employment and e-commerce platforms to provide an online solution for seamless processes from order to invoice in logistics sector. However, the future of logistics industry is expected to change tremendously with the adoption of new innovations using IT, big data, advanced analytics and machine learning. Hence logistics providers need to constantly evolve and upgrade their services to match with consumer expectations.

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