Logistics business strategy

8 Jul by Logistics

Logistics business strategy

Logistics business strategy, Kenya, Zambia, Malawi, Zimbabwe

Digital Transformation and Logistics Business Strategy

A business can set foot on its journey towards digital transformation only if they are agile and flexible enough to be ready towards molding their business strategy. The rule applies to the logistics industry as well, more relevant at the time of uncertainties that we are experiencing due to the prolonged pandemic lockdowns and disruption across industries.

It is imperative to let the digital transformation strategy embed within the current business strategy to have a healthy and effective digital transformation process. 

Six significant aspects where you need to let the digital transformation strategy seep in are described below.

Brand Management: – In today’s customer-centric world, it does not matter whether you are running the last mile delivery B2C logistics market or a trade-centric B2B transportation market; you always must design your solutions in a way that helps your customers ease their operational works. All your efforts go in vain if you fail to identify your potential customers and communicate your offerings to them. Thus, it would be best to adopt certain analytical software/tools to keep track of prospective customers and keep your websites updated. 

Ecosystem management: – Surviving alone in the era of digitization is not an incredibly wise option. It is necessary to develop an ecosystem with suitable possibilities like mergers and acquisitions. You need to evaluate who are your partners and who are your competitors. Irrespective of the services offered by your logistics company, be it handling a warehouse or a road transportation company, embedding digital culture has become necessary to survive. Hence partnering up with suitable digital companies has become imperative in the emerging shared logistics economy model.

Several vendors offer analytical solutions to manage and organize the heavy unstructured data involved in the supply chain industry.  

TCM Transportes, a logistics company in Mozambique with a fleet size of over 200, successfully reduced its operational cost by shifting to an ERP system, from traditional Excel for data management and other functional work.

Hence bringing a successful change is only possible by being agile and open to new gateways of innovative solutions.  

Finance and Investments: – one of a significant issue faced by transportation companies is the delayed payments, that could mess up with the whole system for future decision making. Unorganized data due to the lack of adoption of suitable digital assistance leads to this issue. 

With the help of ERP systems, it could become easy to manage finance-related issues with customers by organising the unstructured data. Sending notifications and letting customers know about their pending payments using customer portals helps customers stay alert about their on-time payments. 

In addition to that, you need to prepare an investment plan with making a separate segment for investments to be made in digital transformation that would include developing digital transformational culture and training of employees. 

Customer Management: – It is the customers who make a company successful hence it becomes imperative to provide customers with solutions that could ease their work. To retain current customers and attract new customers, it is crucial to adopt digital solutions. In addition to that, it is vital to train employees to provide seamless services to their respective customers. 

Providing real-time data to the customers regarding the condition and location of their cargo in transit helps build customer’s trust and creates healthy relations with the company.  

Innovative approach: – Normal is not enough to survive in today’s world. A company needs to adopt innovative solutions to develop a competitive strategy to provide better and faster solutions to their customers. Merging innovative solutions would be impossible without adopting digital technologies in different departments. 

Strategic Management: – It is the responsibility of the leader to develop and practice an agile and open-minded environment in an organization so that employees could adapt to the changes soon and easily. Developing a strategy that involves the development of every department altogether is the best way to set foot towards bringing a new change in your organization.  

But going ahead without analyzing your current potential and resources will not prove successful. A company must analyze its current digital maturity level and then build a digital transformation strategy merging it with the traditional logistics business strategy to survive and succeed.  


The Author brings over 30 years of experience in building digital automation and transformation solutions for the supply chain logistics and warehousing industries.

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