What is Logistics Digitalization?

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Logistics DX is an initiative that utilizes digital technology to improve the efficiency and sophistication of logistics operations as a whole. Specifically, it introduces technologies such as AI, IoT, and big data to optimize delivery routes, automate warehouse management, and improve the efficiency of inventory management. This is expected to alleviate labor shortages, reduce costs, and improve customer satisfaction.

1. Why DX is necessary in the logistics industry
The logistics industry is currently facing a variety of challenges, including an increase in delivery volume due to the expansion of the EC market and a worsening labor shortage. DX can be an effective solution to these challenges.

1-1. Increase in small parcel deliveries due to growth in e-commerce
The EC market is growing significantly, and with it the demand for small parcel deliveries is soaring. This has resulted in an increase in the number of deliveries, which has led to problems such as reduced delivery efficiency and increased burdens on drivers.

Promoting digital transformation will enable the optimization of delivery routes turkey whatsapp number data and the efficient placement of collection and delivery centers, helping to resolve these issues.

1-2. Worsening labor shortages due to the 2024 problem
There are concerns that the 2024 problem will lead to stricter regulations on overtime work for drivers, exacerbating the labor shortage. Not only will this have a major impact on the entire logistics industry, but it has also been pointed out that it may become difficult to maintain logistics services.

By automating and streamlining operations through DX, it is possible to create a system that allows operations to be run with a smaller number of people, thereby alleviating labor shortages.

1-3. Rising logistics costs
Logistics costs are on the rise due to rising fuel prices and labor costs. The aforementioned 2024 problem could also be a factor in rising labor costs. Many truck drivers want to work hard and earn a lot. If regulations on overtime work are tightened and the number of hours they can work (= the amount they can earn) decreases, it is possible that such people will move to other industries.

DX can improve business efficiency and optimization, helping to reduce unnecessary costs and improving profitability. For example, optimizing delivery routes can reduce fuel costs, and more efficient inventory management can reduce storage costs.