Building a digital logistics business
Developing other assets, but forgetting the most important one, employees, would be a significant mistake to commit in the digital transformation journey. Moving towards digital technologies in logistics requires you first to make sure that your workforce know how to operate the currently deployed customer portal, as an example. Only then would it be a wise move to set foot on the path of digital transformation.
Contributed by Nivedita, PGP student from IIMK and summer intern @freightlogisticsonline.com
Digital Maturity Model & Organisational culture
For the workforce to adapt to the emerging technologies in logistics industry, it is crucial for the organizational culture to be agile, technology centric, and hire competent employees. According to a Deloitte study, 82% of the CEOs and HR Personnel believe that organizational culture drives the competitive advantage.
To assess the current digital maturity of your organization’s culture and workforce, take up the Digital Maturity assessment, addition which you can work upon the following aspects in addition to other factors of the Digital Maturity model.
Leadership and Governance
Leaders of the organisations should clearly define the roles and responsibilities and the accountability to reduce the decision-making process, hence the “red tape.” It is vital to develop an organizational framework to enhance transparency and openness among different departments that can be achieved through shifting to an effective ERP system.
In addition to that, forming effective partnerships is also essential in the current customer-centric market. Demands of customers have been continuously growing, even in the B2B sector. Logistics companies look for faster and early deliveries of their orders along with transparency in the process. Thus, it has become imperative to get involved in effective partnerships to enhance the functioning of your organization.
Organisational Design and Talent Management:
A company must develop an organizational design that would align with its overall digital strategy, and the values they are planning to derive from their digital transformation. A logistics management company must be agile and open to new ideas. Resistance to change is a major issue faced by companies, especially in regions of developing countries.
It is also imperative to identify talented workforce in the organization and bring the best out of their talents.
Deploying different types of technologies in a logistics business will help you evaluate your workforce’s effectiveness, hence making it easy for the management to realise who is an asset and who is becoming a liability for the company.
For example, you can access your workforce’s ability to load and offload the trucks at the warehousing using suitable technical devices. The HR Portal of FMS lets you record an employee’s attendance and performance and many more features.
Workforce enablement & organisational culture
Skill gap is one of the major problems faced by the logistics industry when it comes to digital transformation. If the employees are not competent and agile enough, then the company’s productivity is going to decline, leading to a decline in delivering the customer experience.
Leaders hold power to enhance their workforce using several incentives like introducing mandatory training programs, gap assessments of current working staff, effective partnerships to acquire competent employees, and many more.
Companies that forgo developing a technical, organisational culture and workforce enablement often face severe issues related to innovation, growth, and productivity. Hence an organization needs to evaluate the digital maturity level of its culture and later work towards enhancing its workforce hence fastening the process of developing suitable competencies.