Dual transformation in the Logistics industry: opportunities and Challenges for businesses

Dual transformation "Digital and Green"

Dual transformation is a trend in the Logistics industry that all businesses must embrace to adapt to the rapid changes in digital technology and new requirements for sustainability and environmental protection.

What is dual transformation in the Logistics industry?

Currently, dual transformation in the Logistics industry is gaining prominence and is receiving significant attention from businesses due to two major trends: digital transformation and green transformation. These processes are happening simultaneously and have a profound impact on the entire industry’s development.

    1. Digital transformation
      This involves applying new technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), Blockchain, and Big Data to automate, optimize operations, and improve the efficiency of supply chains.
    2. Green transformation toward sustainable development
      Green transformation focuses on meeting stringent environmental regulations, reducing carbon emissions, optimizing energy use, and promoting eco-friendly transportation methods. These two trends are closely intertwined, driving Logistics businesses to seek innovative solutions that not only enhance operational efficiency but also minimize negative environmental impacts.

Opportunities for businesses in dual transformation

    1. Enhancing operational efficiency
      Digital transformation helps Logistics businesses automate processes, from order management and route optimization to real-time tracking of goods, minimizing errors and shortening delivery times. Additionally, it improves inventory management accuracy and reduces operating costs.
    2. Strengthening sustainability and reducing environmental impact
      Sustainable transformation solutions, such as using electric trucks, optimizing routes to reduce fuel consumption, and applying technology to measure emissions, enable Logistics businesses to meet environmental protection requirements, reduce fines, and build a green brand image in the eyes of customers.
    3. Improving customer experience
      With detailed order tracking capabilities, real-time information updates, and shorter delivery times, Logistics businesses can enhance customer confidence, improve customer experience, build trust, and increase satisfaction.

Challenges of dual transformation

Implementing a dual transformation strategy in the Logistics industry, while offering significant benefits, also presents many challenges that businesses must confront. This requires businesses to develop creative and breakthrough strategies.

    1. High initial investment in technology and infrastructure

    • Deploying advanced digital technologies requires substantial investment in technology infrastructure and smart management systems. This involves high initial capital expenditure, along with ongoing upgrades and maintenance to ensure stable and efficient operations.

    • In addition, reducing carbon emissions, optimizing energy use, and adopting green transportation methods necessitate changes in fundamental logistics activities, which can incur significant investment costs.

    1. Shortage of skilled workforce
      Dual transformation demands a workforce that is not only knowledgeable about Logistics but also proficient in using digital technologies. However, recruiting and training a workforce with advanced technological skills is a major challenge for many businesses, especially given the current shortage of skilled labor.
    2. Difficulties in synchronizing and integrating technology
      Synchronizing new technologies with existing systems and integrating data from various sources is a complex task. Businesses often face challenges due to a lack of compatibility between systems, reducing operational efficiency and increasing security risks.

Dual transformation in the Logistics industry

How VELA supports businesses in the dual transformation journey

Dual transformation is not an easy task, requiring businesses to make substantial investments in technology and organizational restructuring. At VELA, we believe that this investment will bring long-term benefits.

    1. Investing in technology
      VELA has invested in open and flexible technology platforms that allow seamless integration with existing customer and partner systems. We also utilize advanced security protocols and continuously monitor systems to ensure data integrity and security.
    2. Professional team
      Continuous training for current employees and recruiting highly skilled professionals is a priority at VELA. We implement internal training programs and collaborate with leading educational institutions to enhance our workforce’s knowledge and skills, while also fostering a culture of learning and adaptation to new technologies.
    3. Building strong partnerships
      We collaborate with leading integrated Logistics technology providers to implement dual transformation solutions most effectively, ensuring maximum benefits for our customers.
    4. Continuous innovation and flexible adaptation
      VELA applies eco-friendly solutions such as optimizing transportation routes to save fuel, using green vehicles, and adopting energy management technologies. We are also striving to achieve international environmental certifications, providing customers with confidence in our strict compliance with sustainable regulations and standards.

Dual transformation is no longer just a trend but has become an essential part of the future of the Logistics industry. With the growth of e-commerce and the pressure from environmental regulations, Logistics businesses cannot afford to miss the opportunity to integrate both digital and green transformations. This direction is key to ensuring sustainable and efficient development for businesses. By embracing these dual transformations, Logistics companies can position themselves for future success, staying competitive and responsible in a rapidly evolving market.