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How does digitalization in logistics impact the industry?

The logistics sector is one of the industries in which the digital revolution is intense, as digitalization in logistics is happening faster than expected, and many companies are seeking to introduce digitalization in logistics, which will help in business success more effectively and enhance competitiveness and stay in the market. In this article, we will discuss the impact of digitalization in logistics and how digitalization enhances supply chains and the provision of logistics services, and we will also learn about what digitalization in logistics is.

What is digitalization in logistics?

Thanks to the rapid and massive technological development that has been increased by the Covid-19 pandemic during the past year, logistics services are closer than ever to benefiting from the benefits of digital transformation

Digitalization in logistics is the process in which new technologies are applied in logistics operations in order to improve the company’s efficiency.

Thus, the integration of digital capabilities in the areas of storage and preparation of orders, as well as transportation and other logistics services.

Technology enabling digitalization in the warehouse


Technology has effectively enabled digitization in warehouses, which has helped improve warehouse operations and workflows.

One form of technology that effectively contributes to enabling digitization in warehouses is the Internet of Things, automation systems and robotics.

Companies can shift towards digital warehouses simply by outsourcing 3PL which provides the best digital logistics services and most importantly digital warehousing.

4 Steps to Digitizing Your Logistics Execution

Logistics service providers are adopting digitalization in the provision of their services, due to the effect of technology in global supply chains.

And there are a number of steps that will help you in implementing digitization in logistics.

The following are the most important steps that your company needs to be able to carry out digitalization in logistics:

1. Understand and accurately identify the challenges facing your company’s operations

Identifying and understanding the challenges in your operations will help you easily enter digitalization in logistics, which will contribute to reducing waste and increasing efficiency.

This is in addition to increasing the speed of work and reducing costs, as recent experiences have proven that companies that integrate digitization in their operations contribute to improving their service levels and reducing their costs.

2. Determine precisely where you want to go with digital transformation

That is, think about your future and what you want to achieve with digitalization in logistics, which will help you determine your ideal future situation.

This enables you to view the latest ideas about digital transformation, as well as learn the most important principles you need in applying digitalization in logistics.

3. Create a list of features you need as part of your digital transformation of operations

After you get to know the problems you encounter while performing digitalization in logistics, you will then need to look for appropriate solutions to those problems.

You can do this by reviewing your strategy as well as the type of technology you need to implement digitalization in logistics.

And do not forget to keep in mind the advantages that the use of modern technologies in your work can bring to you,

Which will provide you with a lot of predictive analytics that will enhance your business in the future.

4. Choose Logistics Execution Technology Vendors who can meet your need

You will need to look for the best Logistics Execution Technology Vendors who can provide you with complete Logistics Execution solutions, and partner with them.

So that their technology integrates with other hardware and software in the least time as well as an appropriate cost for your business and its size, which reflects positively on your business.

Digital transformation in transportation and logistics


Companies are using digital transformation in transportation and other logistics services, due to its great benefits and its positive impact on various operations.

The digital transformation of transportation and other logistics services has helped companies improve their operations and increase their productivity significantly.

This is in addition to its great role in meeting customer expectations and better decision-making, by relying on modern applications and technology that facilitated a lot of business.

How Digitization is Transforming Logistics Services

Digitization is working remarkably and effectively in transforming logistics services and making them more efficient, as digitization, with its modern technologies, contributes to reducing costs and increasing product availability.

It also enhances logistics services, which leads to an increase in available markets and trade opportunities.

Whereas, the introduction of digitalization in logistics makes supply chain management completely different,

As advanced robotics and artificial intelligence (AI) have greatly advanced the provision of logistics services.

As a result, supply chains have become more sophisticated, fluid and profitable, and digitization has also helped to automate monotonous warehousing and manufacturing tasks.

Therefore, the impact of digitalization in logistics is significant and contributes to enhancing the flexibility of supply chains as well as allowing quick access to data and information.

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admin April 20, 2023 0 Comments

What is Inventory Replenishment and Why Does it ‎Matter? ‎

The most important thing that sellers strive for is to meet customers’ demands in the best possible way, and this is possible through having an appropriate amount of inventory and managing it well. The inventory replenishment process affects ensuring that the right amount of inventory is available at the right time, which helps maintain a company’s cash flow.

It also contributes to reducing costs and maintaining customer satisfaction. In addition, inventory replenishment can clearly affect the profits and revenues that the company achieves, with the possibility of doubling them. In this article, we will talk in detail about inventory replenishment and its importance.

What is inventory replenishment?

Inventory replenishment is one thing that helps companies reorder different items of inventory in such a way that customer demands are met.

This is without stock build-up while ensuring that the right amount of stock is available at the time, thus reducing costs related to stock mismanagement.

Why is inventory replenishment so important?


The reason inventory replenishment is so important is that it helps businesses have the right amounts of inventory on hand.

Thus ensuring that customer demands are met while reducing expenses associated with stock build-up or out-of-stock, thus increasing the company’s profitability. Here are the most important points that illustrate the importance of inventory replenishment:

1. Avoid out of stock

Using an appropriate inventory replenishment strategy helps to avoid sudden stock-outs and delays in fulfilling customer orders.

2. Reduce shipping costs

This is because these strategies contribute significantly to controlling shipping costs, by ensuring that orders reach customers in a timely manner.

Thus, avoiding delays in orders caused by the lack of appropriate quantities of stock, which saves on additional expenses for shipping.

3. Avoid overstocking

As these strategies contribute to helping companies avoid maintaining large quantities of inventory.

But rather providing the appropriate quantities of it according to the volume of customer orders.

This helps reduce additional expenses related to inventory deterioration, as well as savings on space holding costs and capital restrictions.

4. Improve customer satisfaction

Inventory replenishment greatly improves customer satisfaction, because companies are able to meet customer orders faster.

Thus avoiding customer frustration due to late orders, which helps in maximizing profits and saving costs significantly.

Inventory replenishment methods and strategies

Inventory replenishment methods and strategies

There are several inventory replenishment methods and strategies that companies can choose from.

Which help them determine the best time to reorder inventory items and check for the right quantity.

Here are some of the most important methods and strategies available:

1. Top-off method

It is one of the most popular strategies among distributors and retailers, especially those with fast-moving inventory items.

This method replenishes shelf selection during slowdowns, helping to provide adequate inventory of fast-selling items.

2. On-demand method

Another common inventory replenishment method and strategy is the way in which items are ordered that meet current demands.

With the provision of appropriate safety stocks, it ensures that stocks are avoided as a result of fluctuations in demand.

3. Periodic stock replenishment method

It is one of the ways in which inventory levels are reviewed at specified intervals, and then determined if certain items need to be replenished.

4. Reorder point method

One of the most important methods and strategies used in inventory replenishment is the reorder point.

Through which a new quantity of stock is requested before it falls below the level of safety stock, thus helping the company to avoid out-of-stock situations.

There is a mathematical formula that can be used to find the appropriate reorder point, and the following is that formula:

  • Reorder point = [lead time * average daily usage] + safety stock

Choosing the right inventory replenishment strategy


You need to choose the right inventory replenishment strategy that helps you always have the right amount of stock in stock.

Thus avoiding stock buildup or sudden stock outs, so it is not possible to determine the best strategy or method to rely on.

But it depends on the nature of your activity and work itself. LOGSTIAT can help you determine the right amount of inventory you need and provide the best inventory tracking and control systems.

So if you encounter a problem in managing inventory or meeting customer orders in a timely manner, never hesitate to contact the LOGSTIAT team to provide the best smart solutions suitable for your business.

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admin April 20, 2023 0 Comments

Cobots in Warehousing: What They Are and Their Impact on Ecommerce Fulfillment

Cobots in Warehousing are very important in the supply chain, as they can help handle many logistics operations at the same time. This contributes to enhancing the efficiency of the supply chain, as well as significantly reducing human errors. This is because Cobots generally help them handle warehousing operations faster and more efficiently, which clearly improves warehouse operations. In this article, we will show you all the details about Cobots in Warehousing, as well as tell you about their most important advantages and benefits in warehouses.

What are cobots? What’s their role in the warehouse?

Cobots in general is an acronym for collaborative robots, which are made to do many of the repetitive tasks that humans do at work. Thanks to machine learning and artificial intelligence techniques, Cobots in Warehousing has been implemented.

These collaborative robots become the place for humans and warehouse workers, so that they can carry out repetitive or more complex and dangerous tasks for humans.

This gives workers an opportunity to focus on the most important tasks that add value to logistics, such as analyzing data, making influencing strategic decisions, and so on..


Advantages of Cobots in Warehousing


Cobots in Warehousing help automate many processes and tasks in warehouses, which mainly contributes to enhancing supply chain efficiency.

It also improves warehouse operations, which benefits the company’s profits and revenues. Here are the most prominent Advantages of Cobots in Warehousing:

  • Reducing errors resulting from manual work and thus ensuring greater accuracy in the completion of warehouse work and improving logistic operations.
  • Reducing risks and accidents resulting from direct workers dealing with complex or dangerous tasks, which contributes to improving safety and security in warehouses.
  • increasing productivity in warehouses, due to the continuous non-stop work of collaborative robots.
  • Reducing operational costs as a result of improving warehouse operations and reducing human errors and thus making good use of the company’s resources.


Benefits of Inviting Cobots in Warehouse Operations

The use of Cobots in Warehousing brings many benefits, which reflect positively on the company’s revenues and profits. Here are the main benefits of integrating Cobots in Warehousing:

1. Improve worker productivity

Cobots improve worker productivity by helping to speed up their processes, as these bots take on complex, repetitive tasks and do them faster and more accurately.

Thus fulfilling orders in warehouses faster and more accurately, while reducing the time and effort on workers and focusing their efforts on other more important tasks.

2. Reduce human errors in Warehouse Operations

Human errors cost warehouses huge costs, which greatly affect the fulfillment of customer orders and can cause the loss of customers altogether.

But by using Cobots in Warehousing, human errors are greatly reduced, as these bots take on complex, repetitive tasks for humans.

3. Enhance workflow efficiency


By using Cobots in Warehousing the workflow efficiency will be greatly enhanced, because these robots take on the difficult and repetitive tasks.

Thus giving workers enough time and energy to focus on complex processes that may involve critical thinking, which positively affects workflow efficiency.

4. Improve safety and security in warehouses

One of the main benefits of using Cobots in Warehousing tasks is the reduction of risk to workers.

This is because these robots handle difficult and repetitive tasks in warehouses, reducing the possibility of workers getting injured while performing arduous tasks.

Thus, it saves the company the costs that it will incur for the injury of workers during work, as well as the costs of disruption of work during that period.

5. Reduce operational costs in warehouses

And this is through the role of Cobots in Warehousing in improving worker efficiency and increasing productivity, and thus improving the process of fulfilling orders.

With the reduction of errors resulting from human actions as well as the costs of safety and security risks, which is reflected positively in reducing operational costs.


Does Your Warehouse Management Systems (WMS) Support Cobot Integrations?

Absolutely yes, as each of the warehouse management systems can work with Cobots in Warehousing effectively in raising productivity and operational efficiency and clearly improving logistics operations.

As both warehouse management with cobots ensure that safety and security standards are maintained in the warehouses as well as ensuring that quality standards are applied in the work.

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admin April 19, 2023 0 Comments
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