How digital technology is shaping the logistics industry

The world is undergoing digital transformation. The global economy poured at least $6 trillion into digital transformation in 2020 and is willing to pour more money for the transformation to happen successfully.

As the world becomes increasingly digitized, industries are changing how they operate. The logistics industry is no exception and uses digital technology in several ways to improve efficiency and communication. Here are five ways the logistics industry uses digital tech to its advantage.

GPS tracking

The Global Positioning System (GPS) has been around since 1983, when the United States used it as a navigation tool for aviation. Eventually, it was available for civilian use, and nowadays, almost any vehicle, whether in air, land, or sea, uses GPS.

GPS is a satellite-based navigation system that can provide location and time information anywhere on or near the Earth. It works by using a network of satellites that orbit the Earth and transmit signals to receivers on the ground.

The advantage of GPS is that it can provide very accurate location data, which is why it’s become such an essential tool for logistics. GPS receivers can calculate their position to within a few feet, making them perfect for tracking shipments and vehicles.

GPS tracking is used in several ways in the logistics industry. For example, companies can use it to track trucks and ensure that they stick to their routes. It can also monitor shipments and ensure they’re delivered on time.

It’s also great for freight forwarders. International freight forwarders widely use GPS to ensure that their shipments are delivered on time and without incident. Tracking shipments can quickly resolve issues, such as delays or missing shipments.

Inventory management

Digital tech has also revolutionized inventory management in the logistics industry. In the past, managing inventory was a tedious and error-prone process. But with the advent of barcodes and RFID tags, inventory management has become much more efficient.

Barcodes are machine-readable codes that businesses can use to store information about products. For example, they’re often used to track inventory levels and help companies reorder stock when it gets low. RFID tags are similar to barcodes but use radio waves to transmit information. It makes them much more versatile than barcodes and can be used to track stock in real-time.

Digital tech has enabled businesses to track their inventory levels in real-time. It can help quickly reorder stock when it gets low, which reduces the chance of running out of products. It also helps businesses keep track of their products and ensure they’re always in stock.

Warehouse management

Digital tech is also changing how warehouses are managed. In the past, warehouses were operated manually, which was often time-consuming and error-prone. But with the advent of warehouse management systems (WMS), managing a warehouse has become much more manageable.

A warehouse management system is software that helps businesses manage their warehouses. It can track inventory levels, manage shipments, and even control warehouse equipment.

Digital tech has made it possible for businesses to automate their warehouses. This means they can rely on machines to do the heavy lifting, reducing the need for human labor. It also helps businesses keep track of their inventory and ensures that shipments are delivered on time.


Blockchain is a mainly known digital tech, but one that has great potential in the logistics industry. Blockchain is a distributed database allowing businesses to store and share data securely.

The advantage of blockchain is that it’s highly secure and can’t be tampered with. This makes it perfect for storing sensitive data, such as shipment information. Blockchain is also great for tracking shipments. Once a shipment has been logged on the blockchain, it can’t be changed or deleted. It makes tracking and delivering shipments easier.

Natural language processing

Natural language processing (NLP) is a branch of artificial intelligence that deals with understanding human language. Companies use it in voice recognition and chatbots.

NLP is being used in the logistics industry to help businesses automate customer service. By using NLP, companies can develop chatbots that can answer customer queries. As a result, it helps companies save time and money by reducing the need for human customer service agents.

Digital tech is changing the face of the logistics industry. From GPS tracking to inventory management, digital tech makes it easier for businesses to manage their shipments and ensure they’re delivered on time. As more logistics businesses adapt to digital tech, we can expect even more innovations in how goods are shipped and delivered.

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