By undertaking a digital transformation in smart logistics services , retailers can increase visibility into their operations, gather insights into ways to eliminate common inefficiencies, or uncover new opportunities to capitalize on. There’s no denying that the pandemic lockdown has changed much of our daily lives, including where and how consumers buy their food and beverages.
Over the past two years, new, non-traditional food distribution models have been adopted. Demand for restaurant food has declined, while direct-to-consumer delivery from online retailers has skyrocketed. This has impacted the industry forever and highlighted the importance of transportation logistics to distributors’ operations.
Logistics digitalization is no longer a new concept in the food and beverage industry. We have seen how it has skyrocketed in transport service companies , especially in logistics and online delivery. In fact, many restaurants are considering streamlining and automating their operations. With this article, we will tell you about the importance of digital transformation in food and beverage logistics, as well as how to implement it as a best practice.
Staying competitive in a dynamic market
Companies that work in the logistics process of the food and beverage business usually know how competitive it is. Even the smallest changes in product quality, missed delivery times and incorrect orders will cause customers to move to a new distributor. On top of that, in the last mile delivery of the food and beverage industry logistics, consumers are used to instant gratification. Whether it is buying online and receiving exactly what they ordered the next day or even the same day.
Instead of waiting for a sales representative to visit them in person, customers want to go online, place their orders and know immediately when their products can be delivered. So when orders are on the way, they look for communications, either via text or email, to alert them of the delivery arrival time and so workers can be ready to unload the day's order, as well as have payment ready if needed.
logistics services companies must be able to adapt to a dynamic market as their business mix is likely to have changed. Even with hospitality services, restaurants and educational institutions, this has been reducing orders and retail stores seeing increased consumer demand. In addition, they may have to create new operating models to support the growth of online shopping and delivery.
Is digitalization a competitive advantage?
It is no surprise that technology is increasingly being used throughout the entire sales experience in the food and beverage industry during the digital transformation of logistics. Sales representatives rely on digitalization, especially since it automatically sends orders to the office and customers place orders on distributor websites. In addition, more automation is needed in the after-sales process and this is where digital transformation in delivery logistics services and systems comes in.
Distributors must eliminate their outdated manual processes and cut across the platforms that separate sales, delivery and marketing. They must increase visibility across all operations. The only way distribution logistics can work is by digitizing processes.
With the right tools, distributors can improve warehouse planning, automate repetitive tasks, overcome supply chain bottlenecks, optimize revenue, make better decisions and enhance the customer experience.
Tips that will significantly help your transportation service business
If you haven’t yet considered a digital transformation strategy for logistics, now is the time to start. Here are some tips that can help your distribution business build a competitive advantage in a highly dynamic environment.
Prepare your business for the future with software
With native software solutions for logistics, vendors handle maintenance and regularly make upgrades to improve their capabilities, leaving distributors free to run their business instead of having to continually update software on-site. Integrate, don’t separate, because this distribution process is intertwined from sales to delivery, so any technology used to manage it must also be integrated.
Choose delivery management software that integrates seamlessly with your logistics business, offering robust features that eliminate complexity and enable the discovery of new efficiencies.
Lean into last mile optimization
Cloud-based platforms make it much easier to connect dispatchers, sales reps, merchandisers, and delivery teams for last-mile delivery in logistics.
Cloud platforms should enable hybrid routing to maximize flexibility and optimize real-time route planning. If done right, those tasked with managing the digital transformation of enterprise logistics will gain true visibility and keep customers happy.
Putting customer experience first
The digitalization and digital transformation of logistics is all about what is most important to customers, whether it is a requirement for specific delivery times, the ability to order online, or the need to have products on the shelves quickly. The ability to meet unique customer needs accurately and efficiently will increase loyalty, which means more sales and higher profits.
With artificial intelligence you will achieve perfection
Technologies can help gain insights such as total delivery cost per case, best hybrid routes, or how to adapt to supply chain issues, which can take into account important variables such as gas prices and traffic. Distributors and suppliers cannot continue to operate their businesses as they did before the pandemic, without sacrificing the ability to grow and improve profitability.
By undertaking a digital transformation in logistics, distributors can increase visibility into their operations, gather insights into ways to eliminate common inefficiencies, or uncover new opportunities to capitalize on.
If the transformation is done the right way, distributors have great potential to serve more customers and build a foundation for a successful and efficient future. With ToolRides, you can change the future of your transportation services business.
