NAVIGATING THE DIGITAL SHIFT
THE RISE OF “DIGITAL USE CASE” ADOPTION IN LOGISTICS INDUSTRY
A "digital use case" in logistics and supply chain management refers to the application of digital technologies to optimize and automate processes. Technologies such as IoT, AI, cloud computing, and data analytics provide real-time visibility, data-driven decision-making, and improved efficiency across the entire supply chain. Companies now measure their digital transformation success by tracking "Digital Use Case Adoption," which directly impacts both revenue growth and cost savings.
According to a McKinsey survey, digital adoption in logistics is on the rise, with logistics service providers showing higher adoption rates than shippers. Over 55% of logistics providers expect to implement at least 13 digital use cases in the next three years, including emerging Generative AI applications.
Key Digital Use Cases in Logistics
- Real-time cargo visibility
- Self-serve dynamic pricing
- Dynamic routing
- Capacity optimization
Successful implementation of these use cases often requires multiple technologies working together. For example, real-time cargo visibility relies on cloud computing, IoT sensors, robotics, cybersecurity, analytics, and AI/ML. However, research shows that nearly 75% of digital transformation projects in logistics fail to meet their objectives due to complexities and integration challenges.
Overcoming Digital Transformation Challenges
- Taking a systematic and comprehensive approach to digital investments.
- Upgrading current digital infrastructure and addressing integration complexities.
- Simplifying processes to improve scalability and compliance.
- Bridging skill gaps and ensuring equitable digital training for employees.