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Blue Yonder: top five digital disruptions in logistics

Business Chief takes a closer look at Blue Yonder’s top five disruptions shaping digital transformation in distribution and logistics.

|Aug 24|magazine8 min read

1. 'Digital transformations in manufacturing and retail’

“Digitalisation is transforming every aspect of business across all industries, particularly impacting distribution and logistics,” commented Blue Yonder. “Healthcare providers expect products, combined with services, to be delivered all the way to the point of care within the hospital, not just to the receiving department. Automotive manufacturers don’t want the burden of carrying raw material components, so distributors and logistics providers need to manage and deliver the right components just-in-time for production.”

As those within the industry continue to transform their strategies, Blue Yonder details that the challenge for distributors and logistics providers is the need to accelerate their ability to deliver their services. It was agreed at the BG Strategic Advisors Supply Chain Conference, that as manufacturers and retailers grow their online channels, logistics providers need to become an extension of these organisations, providing personalisation, kitting and other value-added services.

2. ‘Consumerization of B2B services’

“The consumer buying experience is transforming the way the B2B buyer experience is evolving,” added Blue Yonder. “Logistics providers must consider how B2B buyers think about their wants and needs.” With Buyers today wanting everything to be visible via mobile app and website on-demand, with next-day delivery and a personalised and customised experience. “The future of logistics, therefore, isn’t just about next day/same day delivery, it’s about personalisation, options and on-demand as well. Top logistics companies must be able to support these on-demand expectations.”

3. ‘Data is money’

“Everything today is run by data that’s hyper connected to customers, trucks, warehouses and quality monitoring, just to name a few,” explained Blue Yonder.

“Data is an opportunity for distributors and 3PLs to differentiate their value propositions. The ability to gain insight from the data provides real-time visibility, security and efficiency, as well as the opportunity to predict and proactively act on supply chain risks.”

4. ‘Global workforce crisis’

“Due to the aging global population, coupled with historically low unemployment rates, workforce shortage is a big concern and one that does not look to improve for some time.” As a result, distributors and logistics companies will need to be innovative when it comes to retaining and attracting top talent, while continuing to improve productivity.

5. 'Infused technology’

“Drones, AI, autonomous vehicles, machine-learning and robotics are a few of the disruptive technologies that dominate the news today. These technologies have the potential to dramatically reshape best practices within distribution and logistics companies, and can strategically redefine value propositions to their customers. Manufacturers and retailers continue to scrutinise their distribution and logistics partners and expect them to bring technology expertise and leadership to the table,” commented Blue Yonder, who believes that those in the industry who can narrow the IT gap will have a competitive advantage.

”Logistics providers need to position technology front and center as part of their go-to-market strategy to differentiate their value proposition.”

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