Digital Transformation in Logistics Operations: Impact on Supply Chain Performance

Abstract

Logistics management is currently undergoing a digital revolution unlike any other. There is no doubt that innovation is the driving force for the operations of logistics companies. Digital transport technologies like IoT, AI, Cloud, Big Data, etc., have enabled companies to improve how they plan their operations; how they monitor their operations; and how they execute their operations. Analyzing this will help us gain insights into how it affects their operations and supply chain performance through the use of digital technologies to provide shippers with better shipment visibility (real-time), more effective inventory management, better collaboration within the broader supply chain, and faster decision-making processes. Through this, logistic organizations are able to experience increased operational effectiveness, lower costs, and increased customer satisfaction. However, even though there are a number of advantages of using digital technologies in an organization, there are a number of challenges facing companies when it comes to using these technologies, such as high investment costs, lack of digital literacy in their organization, and data security concerns. This study revealed that through the use of successful strategies and processes of digital transformation, organizations are able to experience increased operational efficiencies, increased supply chain visibility, and increased competitive advantages in this digitized business world.