Xiaohe: “Hello, everyone. I am MOOV‘s mascot – Xiaohe. Recently, I have received some similar inquiries ‘ I see there are great benefits that information technology can bring to my businesses. However, my company is currently operating smoothly. Is it necessary for me to invest in upgrading to a digital logistics system? Or in what situations should I consider digitizing it?’ Although digital logistics is not a new term, I believe it is still essential to discuss the differences between traditional and digital logistics and the necessary application scenarios. I hope this will be helpful for your logistics development plans.”
Firstly, let’s see the differences between traditional logistics and digital logistics:
1. Operational methods:
- Relies on manual operations and paper documentation, leading to intricate processes and potential risks of human errors.
- It is difficult to avoid individual operational discrepancies through manual operations, making it challenging to establish standardized cross-regional and international processes, which hinders economies of scale.
- Utilizes information technology for automated data capture and transmission, ensuring timely and accurate information communication.
- Leverages extensive data for process optimization, enabling swift implementation of standardized procedures across different departments, enhancing work efficiency, and allowing for sustained optimization.
2. Data sharing level:
Traditional logistics: Slower information transmission due to manual updating and paper records.
Digital logistics: Highly digitalized, with real-time data sharing across all stages, enhancing logistics transparency, enabling real-time monitoring, data analysis, and intelligent decision-making.
3. Carbon emission reduction demand:
Traditional logistics: Requires extensive paper usage, which is not conducive to carbon emission reduction goals.
Digital logistics: Greatly reduces the use of paper documents and, through process optimization, reduces manual work and carbon emissions.
Next, let’s explore the application scenarios for them:
Traditional logistics is suitable for:
- Small-scale/simple business: For companies with uncomplicated logistics processes, traditional logistics can meet their daily operational needs, and there may be no immediate need for investing in digital logistics. Resources can be allocated elsewhere.
- Temporary project-based companies: Some enterprises might require logistics services for temporary events such as exhibitions, competitions, or promotional activities. In such cases, traditional logistics can fulfill short-term demands.
Digital logistics is suitable for:
- Medium and large-scale enterprises: Digital logistics can enhance global supply chain transparency and transport efficiency, reducing logistics costs.
- E-commerce companies: Digital logistics can provide fast and accurate delivery services, increasing customer satisfaction.
- Fast-moving consumer goods (FMCG) companies: Digital logistics can accelerate product turnover, reducing inventory build-up.
- High-tech industries: Digital logistics can optimize global supply chains, ensuring timely delivery and secure transportation of high-tech products.
- Food industry companies: Digital logistics can monitor temperature and humidity parameters, ensuring product quality and safety.
- High-value goods enterprises: Digital logistics can provide higher security and traceability, protecting valuable goods.
“Based on the above analysis, it is visible that digital logistics can bring benefits. Not only can it enhance operational efficiency for businesses, but it also contributes to sustainable development. However, it’s important to note that updating information technology requires a certain level of financial investment. When deciding whether to embark on digital transformation, companies can consider their own circumstances, market environment, and long-term development strategies. To assist you in making an informed decision about whether digital logistics transformation is suitable, we have prepared a brief quiz comprising five questions that can quickly assess whether it is the right time for you to initiate digital logistics. Welcome to click to participate in the self-assessment game. Of course, we welcome you to contact us anytime to discuss logistics solutions that best suit you.”