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The head of the logistics company Euroterminal Alexander Eismont said that digitization of various services is a condition for successful business. The trend has not gone unnoticed, including logistics services. Thus, transport logistics is now most interested in digital transformation and process automation.
Many logistics companies willingly switch partially or completely to new business ideas where almost everything is automated. In addition, the introduction and use of digital products now is the surest way to cut costs.
Alexander Eismont: Management of logistics activities
The modern business environment is characterized by a high degree of uncertainty due to a number of reasons, notes Alexander Eismont. The uncertainty of parameters in the supply chain is strongly influenced by the following factors:
1. Demand
2. Delivery terms
3. Stock level
4. Number of orders
5. Production capacities
6. Transportation time
7. Natural and human factors, etc.
Logistics activities in supply chains are mainly aimed at reducing non-production costs of the company. In addition, at the same time, production times are reduced, which implies a reduction in labor costs for certain categories of personnel and equipment downtime.
It is for these reasons that a system approach is necessary in the management of the supply chain as a structure of interconnected elements, according to Alexander Eismont.
In turn, these elements will be united by a common goal to achieve further cooperation and synchronization of processes. At the same time, three interdependent management objects can be distinguished in the supply chain:
- business process flow subsystem;
- a subsystem of interrelated and strategic partnerships of companies participating in the supply chain;
- management subsystem at the supply level.
Such an approach will take into account the specifics and complexity of these processes as an object of management, explains Alexander Eismont.
Alexander Eismont: Digital transformation of logistics
In order to create conditions for conducting business in the new digital reality, it is necessary to create and use modern information systems, intellectual information technologies, and build processes of network integration, emphasizes Alexander Eismont.
The tools of the commercial chain of creating value for clients on a single digital transport and logistics platform will allow creating a new modern focus on the development of trade and its further development to a new level. Digital logistics, an important direction of the digital transformation of the economy, can become a mechanism for realizing these tasks.
The transition to predictive models of the development of the new economy determines the need to change the system of business relations between organizations and individuals based on database analysis, supply planning, as well as the use of "smart" end-to-end technologies for production, delivery of goods and provision of services.
Alexander Eismont explains that the vector of the digital industry determines the important evolution of geographic information systems (GIS), which are necessary for transport and logistics solutions.
The location of objects is complemented by at least two dimensions — time and finances. This allows connecting different spheres of activity, and in the future, economic processes with the areas of functioning logistics (i.e. logistics of supply, logistics of production, logistics of distribution, etc.).
Thus, it is possible to conclude: the key to the success of transport and logistics organizations nowadays is the identification of new products according to the values of partners and clients. And these tools of such values are digital technologies and digital modeling.
