Effectiveness of Digital Technologies in Managing Logistics Processes

Abstract

To automate business processes and make effective decisions, small and medium enterprises (SMEs) are turning to various information systems that create a unified functional environment and allow management to run the organization using the best business practices and standards of the world. One of the key benefits of digital technology in logistics is improved demand and supply forecasting processes. Data analytics and machine learning systems allow companies to more accurately predict which goods will be in demand and optimize inventories accordingly. The most common information systems are ERP and CRM platforms. With an ERP system, a company is able to manage the supply chain and control requirements, effectively use labor resources, promptly manage the necessary information, and analyze revenues and expenses. As for CRM, this system allows companies to effectively manage customer-related processes, analyze sales figures and make appropriate assumptions. Depending on the functions of the mentioned platforms, their collaboration can be effective for any business. However, given the digital advances and transformations, how effective and appropriate the combination of such information systems is for the success and profitability of medium and small businesses is a matter of evaluation.