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Impact of digital transformation on the shipping industry

With the rapid growth of e-commerce, the shipping industry is feeling the impact of digital transformation. And transport and logistics is the most affected sector. A 2016 PwC study highlighted the problems facing the industry in a digital world. At the time of the study, the percentage of transport and logistics companies that rated themselves as “advanced” on digitization was just 28%.

Since that time, they have realized the importance of digitization, especially to enhance the customer experience. So they set out to improve order tracking as well as communication with customers. How are things looking now? Let’s take a look at the impact of digital transformation on these businesses.

Use of mobile technology for greater flexibility

In the United States, 96% of consumers want to be able to track their deliveries, while only 51% of companies provide that capability (Temando). To meet this need, the shipping industry is using, among other things, mobile technologies so that customers can get the status of their shipments in real time. Another benefit of going mobile is that the delivery staff can access the most up-to-date information available. According to a Deloitte survey, 37% of manufacturing and supply chain professionals are already using mobile options and portable technologies. It is estimated that this figure will climb to 80%–90% by 2023.

Another study by VDC Research also supports this trend: proof of delivery is an area in which mobile technology is being used or will be used in the near future. This applies, for example, to real-time routing (used by 63% of the companies surveyed), parcel delivery and tracking (55%), and proof of delivery (51%).

Digital delivery for increased speed

With customers wanting efficiency and a better experience, transport and logistics companies want to offer shorter delivery times. So they need faster processes to meet customer expectations. Moreover, 27% of the consumers surveyed by McKinsey said that slow delivery was the reason they decided against making online purchases.

Further, 25% of consumers are willing to pay significant premiums for the privilege of same-day or instant delivery. That means companies are faced with new challenges in order to speed up their processes. But they can rest assured: 74% of consumers generally prefer free, rather than fast, shipping (according to Temando).

This is not all the industry has in store for us. McKinsey conducted another study on the future of the transport and logistics industry. It revealed that autonomous vehicles and drones will deliver 78% of items, whereas traditional delivery will account for no more than 20%. Only 2% of items will be delivered by bike couriers. But we’ll have to wait and see if these stats play out!

To meet all of your customers’ requirements, you stand to gain a great deal by offering a variety of delivery choices and adapting the accompanying processes. Opting for mobile technologies or digital proof of delivery would be a wise first step. At Objectif Lune, we believe that digital transformation should happen at your own pace! Visit our website to find out more.

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Digital Proof of delivery