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Implementing new technologies in the logistics sector is the guarantee of efficient deliveries, reduced work and satisfied customers.

*By Waldir Bertolino

Since the beginning of the Industry 4.0 movement, the logistics and distribution area has faced major challenges and changes in processes. With the increasingly volatile global market, demanding customers and challenges with the supply chain, companies need to have excellent flexibility to adapt to the new direction of the sector and maintain the efficiency of their operations. 

According to the Semiannual Innovation Survey (PINTEC), carried out by IBGE in December 2022, of the 9.4 thousand organizations interviewed, around 70% invested in technological innovations in 2021 and 58.4% intend to expand their investments in research and development in 2023. What was previously seen as a villain , today innovation is the most effective way to safely optimize activities, position the organization in the market and attract new customers and investors.  

4.0 technologies, such as AI (Artificial Intelligence), ML (Machine Learning) and IoT (Internet of Things) are gaining prominence in the logistics sector by driving the improvement of processes and results. Check out some of these benefits below:  

Customer service  

The use of AI to automate service chats made communication between the organization and the customer faster and more assertive. This technology has access to the company's database and ensures personalized customer service, which, among other functions, can receive product recommendations based on their needs and preferences.  

warehouse management 

A major weakness of the logistical networks was the location of products during the transport of goods. The use of AI and ML to track items and report real-time delivery status to suppliers and customers has increased consumer satisfaction and added value to the brand's business. In the past, having control over the number of products in stock and managing deliveries was an expensive and time-consuming process. Now, with the help of 4.0 technologies, in addition to having access to all this information simultaneously, it is still possible to assess external factors, such as weather, social media, trends and impacts for greater accuracy of activities.  

Integrated Solutions 

Integration between technological solutions allows distributors to monitor all processes and have access to products available in inventories. With an integrated supply between suppliers, resellers and consumers, it is possible, for example, that the customer reserves a part online, the reseller is notified while the item is separated in the virtual stock and removed from the catalog, while the supplier receives a message advising that the object entered the list of requests to be sent.  

If this process were done manually, it would take more time. With the digitization of demands, the order can be withdrawn in a few minutes and all parties are alerted to the movement of the goods. In addition to all the practicality and speed, the technology also reduces the margin of communication errors, since the entire logistical ecosystem is notified in a clear and transparent way. 

New pricing strategies 

The personalization of service also allows organizations to have information about which products are being most sought after, so they can direct their efforts to the specific demands of production, storage and distribution. The data science behind this action enables strategic pricing, improved pricing margins based on the data generated by recommendations, and most importantly, a predictable revenue stream. This strategy helps brands determine product values more assertively.  

The Industry 4.0 model came to expand business opportunities, adding value to both services and customers and employees. Implementing AI, ML, IoT and cloud storage in the distribution and logistics industry is an excellent investment for companies seeking better market positioning and increased revenue generation. Innovation is an ally of companies in the sector towards business success and greater long-term profitability.

*Waldir Bertolino, Infor Country Manager in Brazil

Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies

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