What is the main benefit of using technology in logistics?

The main benefit of using technology in logistics lies in the achievement of greater transparency throughout the supply chain. Technology facilitates improved visibility into various stages of the logistics process, from inventory management to shipment tracking. This enhanced transparency allows companies to monitor their operations in real-time, leading to better decision-making, more efficient processes, and improved customer satisfaction.

For example, technologies such as tracking software, data analytics, and cloud-based communication tools enable organizations to share critical information regarding inventory levels, shipment statuses, and delivery times with suppliers, partners, and customers. By having access to accurate and timely information, businesses can respond quickly to issues, avoid stockouts, and optimize their supply chain operations effectively.

While reduced labor might be a consideration due to automation, the overarching goal of improving logistics is more closely tied to transparency, which helps in managing relationships and expectations across the supply chain. Higher costs and fewer suppliers do not typically represent benefits affiliated with technological advancements in logistics.