Logistics companies and freight forwarders are always looking forward to new technologies that would make their work easier by replacing the traditional way of working with an extremely efficient and streamlined technology-driven process. With the workforce prepping themselves further moving away from traditional ways of working, virtual logistics is unfolding its wings, particularly in the last few years. The concept of virtual logistics is evolving faster than it is being implemented as the companies are clearly looking at cost savings and efficiencies.
Let’s understand the difference between traditional logistics and virtual logistics.
Traditional Logistics Team
Virtual Logistics Team
A traditional logistics team comprises of a handful of people in one place who are responsible to make logistics plans.
A virtual logistics team is also made of logistics planners but they perform their job remotely. It allows companies to find talent globally rather than locally.
The traditional logistics planners are located in each supply center and are given the task of monitoring, controlling, organizing and coordinating the shipping as well as receiving consignment and managing the daily work of a warehouse. In case, there are many warehouses to be managed, many logistics planners are required.
This logistics team performs a similar role as a traditional logistics planner, but they are not tied down to a single warehouse. Digitalization helps them to track stock availability and to get up-to-date information and alerts.
The logistics planners personally manage everything at the warehouse, communicate with each other and analyze all logistics data to see if improvements can be made.
Whatever the virtual logistics team does is recorded and stored in the cloud. All the process work, whether it’s monitoring consignment, analysing data and communication, it’s done online close to real-time.
Today, larger companies are migrating to virtual logistics in centralized planners, rather than locating them in each distribution centre. However, the trend has not gathered momentum the way the experts were anticipating. Companies that consider themselves as “advanced” on digitalization is just 26 per cent.
How is the virtual logistics team working?
The virtual logistics team is possible only with cloud computing. The cloud-based solutions allow the companies to record all entries in the cloud, where the team can access the end-to-end process of the entire supply chain. All the information updated is close to real-time such as traffic delays, shipment movement, etc.
With cloud technology, the virtual team is possible
Cloud technology helps in accessing and sharing data safely, efficiently and cost-effectively across the globe. The IoT (Internet of Things) is bringing in change in the entire logistics workflow as monitoring and tracking of the entire supply chain is manageable by virtual teams. All the data with respect to shipment is managed in the cloud thereby monitoring operations across all facilities with automated, real-time feedback along with the reduced burden of maintenance. With cloud technology, the remote logistics team is able to receive updates on traffic delays, cargo movements, ETAs, etc. With technology enhancement, the customer expects quick and reliable information of their consignment, which encourages companies like 20Cube Logistics to adopt new technologies such as ‘MyHub’ portal that allows the ‘virtual team’ to take things forward without a hassle in the operations as well as in the cargo movement.