Written By: Aleksei Kolokutskii
Expert in the field of automation of logistics processes.
Founder of Trans-System LLC and Integration Information and Logistics Systems LLC.
The article explores the role of automation in the modern logistics sector, which has become a global market with the development of technology and digital transformation. The author examines how IT implementation contributes to the optimization of complex logistics processes and efficient management of logistics chains. The article analyzes the challenges and obstacles of digitalization implementation and offers recommendations for successful implementation of automated systems in global logistics.
Development of digital logistics markets
Modern logistics is actively implementing IT solutions such as artificial intelligence, blockchain and automation. This optimizes business processes and improves supply chain efficiency, especially in the era of e-commerce and changing consumer preferences. Digitalization of logistics provides new innovative opportunities, contributing to the sector’s growth and competitiveness in the global economy.
Automation statistics in the trucking segment show the growing importance and widespread use of digital technologies in this industry. Here are a few key facts:
– According to McKinsey research, more than 50% of logistics companies have already implemented some level of automation in their business processes. This indicates widespread recognition of the benefits and importance of automation in modern logistics.
– PwC research shows that more than 80% of logistics companies see automation as a key factor in improving operational efficiency and reducing costs. It is noted that automation can reduce order processing and delivery times, as well as reduce errors.
– The Deloitte report notes that more than 60% of logistics industry leaders see automation and digital transformation as key factors to ensure competitiveness in the market. This indicates that companies are actively investing resources in the development and implementation of automated solutions.
– Grand View Research forecasts the global logistics automation systems market to grow from $45.95 billion in 2020 to over $88 billion by 2028. This growth is driven not only by the increasing demand for automation from logistics companies, but also by the development of new technology solutions.
The role of automation in global logistics
The introduction of IT in transportation logistics ensures more efficient operation of enterprises. Let’s take a closer look at the main results of digitalization in this area.
Examples of successful cases
One of the pioneers in the digitalization of the logistics sector were specialists from Integration under the leadership of Aleksei Kolokutskii. They realized that the current business models were outdated and hindered the development of the industry. First of all, a large amount of data was entered manually, which was labor-intensive and often led to errors. Some important metrics were not calculated at all, making it difficult to make informed decisions. This led to the need to keep extra staff to process information, thereby increasing costs and overburdening employees. So a decision was made to develop our own IT product and in 2018 a patent for the program “Transport Services – Corporate Information System of the Transport Company KIS TK” was issued. Thanks to the correct use of information and the introduction of automation, it was possible to solve many existing problems. First of all, the system automatically loads flight data, which significantly reduced the time for its processing. Thanks to full integration between the company’s departments, communication and interaction between them has improved. Managers can now promptly receive information about downtime and breakdowns, as well as track deviations from the plan and notify employees and customers of any problems that arise.
In addition, the introduction of this system has had an impact on the quality of management accounting, as the company’s management now has access to up-to-date data. This allowed for more informed financial planning and cost reduction. It is important to note that these solutions have become successful not only in Russia, but also in the world, and more than 250 companies are successfully using them to optimize their logistics processes. Obviously, this figure will grow – according to statistics from Adroit Market Research, by 2025, at least 25% of total spending by leading organizations will be directed towards digital transformation.
Challenges of automation implementation and ways to address them
Implementing IT solutions in the logistics industry comes with several key challenges:
Financial cost: Companies face significant investments when implementing digital technologies, and this can be difficult for small and medium-sized logistics firms. The solution may be a phased implementation, starting with key processes to maximize the economic benefits.
Staff adaptation: The use of IT solutions often requires changes in the organizational structure and responsibilities of employees. Staff resistance and fear of losing their positions can slow the process. Providing support and training helps employees successfully adapt to new realities.
Integration with existing systems: Many companies already use their own management systems and processes. It is important to ensure that new solutions are compatible with existing solutions and that integration is sustainable. It’s at this stage that technical challenges often arise, so it’s important to conduct thorough research and select solutions that fit the company’s unique needs.
Data privacy and security: Sharing large amounts of data in the supply chain increases the risks of leaks or unauthorized access to sensitive information. Ensuring a high level of data protection and utilizing modern encryption technologies are integral to the successful implementation of IT products in logistics.
Overcoming the challenges of automating logistics business processes requires careful planning and a comprehensive approach. It is important to conduct a detailed study of current processes and develop an implementation plan with budget and resources. Training staff on new technologies and integrating systems with existing ones will help ensure the efficient operation of the entire logistics chain. Special attention should be paid to data protection and privacy. Involving all stakeholders in the implementation process and gradually expanding automation will mitigate possible resistance and eliminate problems. Continuous development of the system and search for new opportunities for optimization will help to increase efficiency and reduce costs of all logistics activities of the company.
Logistics Automation Market Size, Revenue Share, Major Players, Growth Analysis, and Forecast by 2028, PRNewswire, May 24, 2023
Automation in logistics: Big opportunity, bigger uncertainty, By Ashutosh Dekhne, Greg Hastings, John Murnane, and Florian NeuhausMcKinsey, April 24, 2019
Trends and Strategies in Logistics and Supply Chain Management –
Digital Transformation Opportunities,