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Importance of Technology | XL Logistics Blog

The Importance of Technology in Logistics Operations

Posted on 30. Oct, 2013 by in 3pl

Logistic supply chains have several checkpoints between production and delivery. The best way to promote quick, reliable and cost-efficient management throughout this process is to closely monitor every detail. Thus, the importance of technology in logistical procedures relates to the ability to oversee all business aspects.  

Gathering Vital Information

Increasingly in the modern age, companies are choosing to cut costs by moving production to overseas markets. This creates a more complex system of logistics by involving global operations, which can in turn leave businesses vulnerable to unreliable foreign manufacturing processes. Using technology to collect information at each phase of production can thus allow a company to pinpoint inefficiencies in the logistics chain.

Secure Tracking

The importance of technology in logistics also has to do with optimal financial safekeeping. According to a recent federal study, cargo theft is attributed to 30 billion dollars of losses each year. In order to protect shipments against such crimes, transmitting devices can be attached to cargo to ensure safe passage. This wireless communication sends alerts to the operator as soon as an instance of interference occurs. Furthermore, the date collected by radio frequency tags allows for easily updated inventory analyses.

Inclusive Networking

Technology can also provide an extensive network that connects individuals from all areas of a supply chain. The instantaneous sharing of imperative market details can improve the speed and overall efficiency of logistical procedures. This allows professionals to detect problems and brainstorm solutions in a significantly accelerated amount of time, compared to traditional forms of communication.

Portal Collaboration

Online portals can grant individuals mutual access to every detail of logistics operations. The ability to easily locate applications that involve purchases, forecasting, management, bar-codes and shipment notices can ensure reliable procedures.

The importance of technology in logistics operations cannot be understated. Without the ability to collect, track, store and share information from various parts of supply chain management, the process of manufacturing and transporting materials would be susceptible to significant setbacks.

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