The idea of crewless ships was once considered sheer science fiction. Then, in 2017, PwC reported that at least two out of 10 Norwegian and Greek shipping decision-makers thought it certain or at least probable that ships would be controlled from land in the foreseeable future. And in 2022, the world’s first fully autonomous ship completed its maiden voyage.
This shifting mindset signifies the radical yet realistic avenues unfolding for Shipping and Logistics (S&L) companies. The digitalization of physical systems and assets is spurring an exciting age of possibilities. A pioneering attitude is crucial, given the unprecedented challenges confronting the lifeline of global commerce – while seaborne trade is rising, there are major concerns over the aging global fleet.
This is, however, just the tip of the iceberg. With many valuable physical assets and associated systems nearing obsolescence, the S&L industry must embrace digitalization to amplify profits and address changing consumer behaviors, regulatory mandates and macro-economic pressures.
The Revolutionary Scope of Digitalizing Physical Assets
The key to unlocking the next level of success lies in the strategic adoption of transformative technologies that maximize the potential of physical assets. In other words, S&L firms must adopt agile and holistic digitalization suites.
These suites leverage technologies like Artificial Intelligence (AI), Machine Learning (ML), robotics, the Internet of Things (IoT), cloud integration, analytics and much more to automate processes, provide integrated visibility and enhance cybersecurity.
Such transformation brings significant business advantage by fostering innovation and driving competitive advantage in the industry. Consider some of these benefits that aid in attracting new customers, retaining existing ones and enhancing compliance and risk mitigation.
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Real-time information and insights
The ability to gather, analyze and interpret heaps of information from physical assets empowers businesses to make smarter decisions. By harnessing real-time data from shipping containers, trucks and vessels, logistics companies can optimize routes, reduce transit times and minimize fuel consumption.
Deploying AI, ML and IoT-powered sensors allows for proactive maintenance while cutting costs. McKinsey research reveals that early adopters of AI-led supply chain management solutions witnessed improved inventory costs of 35 percent and logistics costs of 15 percent. This approach not only increases the lifespan of assets but also maximizes their productivity and minimizes repair costs.
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Enhanced safety
Robotics can enhance the safety and security of the workforce by minimizing human intervention. Drones, for instance, are becoming popular in warehousing for inventory monitoring and, beyond warehouse confines, for yard management. This capability is particularly useful in hazardous environments. Additionally, by integrating predictive analytics, data from vital assets – like vessels – can be used to send timely alerts, minimizing accidents, injuries and loss of valuable cargo.
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Heightened productivity
Modern robotic systems are faster and more accurate at various jobs such as sorting, picking and packing. Mundane tasks such as moving cases and pallets can be assigned to Automated Guided Vehicles (AGVs), freeing human resources for more important functions. Such technologies raise productivity and lower personnel expenses and the possibility of mistakes. To improve workflow and boost throughput, major logistics businesses like Amazon and DHL have already included robotics in their warehousing operations.
Exploring Uncharted Territory: The Role of Strategic Partnerships
While the benefits of digitalization are clear, the great sweep of technological and infrastructural changes that need to be implemented can overwhelm organizations. To bridge this gap, industry players must foster collaborations with specialists who have a proven track record in domain and digital transformation.
Partnering with experts can secure insightful, data-driven decision-making that considers both immediate and long-term requirements. The right partner also takes a collaborative, skin-in-the-game approach to providing strategic benefits on various fronts, including cloud architecture, advisory services, business security and competition analysis, to name a few. Partners can also leverage each other’s infrastructure, capabilities and domain expertise to supplement efforts, navigate challenges and achieve mutual growth.
While considerable progress has been made in digitizing data and processes, the automation of physical assets is an area that holds vast, untapped potential. Innovations such as autonomous vessels, drones and robotics have already shown promise in enhancing warehouse operations and last-mile delivery. As technology advances and regulations evolve, strong partnerships can help businesses stay agile and open to embracing these automation opportunities.
Talk to our experts to know more about the advantages of collaboration in the journey to digital transformation of physical assets in shipping and logistics.
FAQs
1. What is Digital Asset Management in Shipping and Logistics?
Definition and Context
- Digital Asset Management (DAM) in shipping and logistics refers to the strategic adoption of transformative technologies to digitalize and manage the extensive portfolio of physical assets such as shipping containers, trucks, and vessels.
- This digitalization involves leveraging technologies like artificial intelligence (AI), machine learning (ML), robotics, Internet of Things (IoT), cloud integration, and analytics to automate processes, provide integrated visibility, and enhance cybersecurity.
Key Benefits
- Real-time Insights: Businesses can gather, analyze, and interpret large volumes of data from physical assets, enabling smarter decision-making.
- Enhanced Safety and Productivity: Automation and real-time data help optimize routes, reduce transit times, and minimize fuel consumption.
- Innovation and Competitive Advantage: Digitalization fosters innovation, attracts new customers, retains existing ones, and enhances compliance and risk mitigation.
- Integrated Operations: Agile and holistic digitalization suites automate processes, provide end-to-end visibility, and improve risk management.
Industry Impact
- The digitalization of physical systems and assets is transforming the shipping and logistics industry, making operations more efficient, secure, and responsive to changing consumer behaviors and regulatory requirements
2. How does Digital Asset Management improve efficiency in logistics operations?
From WNS’s perspective, a robust Digital Asset Management (DAM) system streamlines logistics operations by centralizing all digital assets—such as shipment documents, route maps, invoices, and compliance records—into a single, easily accessible repository. This eliminates manual searches, reduces errors, and accelerates decision-making. Integrated with analytics and automation, DAM enables faster document retrieval, real-time visibility across the supply chain, and improved collaboration between stakeholders—ultimately enhancing turnaround times and operational efficiency.
3. What role does Digital Asset Management play in shipping asset tracking?
Digital Asset Management (DAM) enhances shipping asset tracking by providing a unified, secure platform to store, manage, and access all shipment-related digital assets—such as bills of lading, GPS data, container images, and tracking reports. By integrating DAM with IoT and analytics systems, customers gain real-time visibility into asset location, condition, and status. This improves traceability, reduces manual follow-ups, ensures faster issue resolution, and enhances overall supply chain transparency and customer experience.
4. How can Digital Asset Management enhance safety in the logistics industry?
Digital Asset Management enhances logistics safety by ensuring accurate, real-time access to critical safety documents—such as compliance certificates, vehicle maintenance logs, driver credentials, and incident reports. DAM centralizes and automates the management of these digital assets, reducing the risk of human error or outdated documentation. When integrated with WNS’s analytics and AI-driven monitoring, it enables proactive identification of safety risks, faster response to incidents, and compliance with global transport regulations, ultimately creating a safer and more accountable logistics environment.
5. Why is Digital Asset Management important for the future of shipping and logistics?
Digital Asset Management is critical to the future of shipping and logistics because it drives data-driven efficiency, transparency, and scalability. As operations become increasingly digital and global, DAM ensures all shipment-related assets—such as tracking data, compliance documents, sensor feeds, and digital proofs of delivery—are securely centralized and easily accessible. This enables real-time visibility, faster decision-making, and seamless collaboration across partners and geographies. Supported by WNS’s analytics, automation, and AI capabilities, DAM helps customers optimize costs, reduce delays, and future-proof supply chain operations in an evolving digital ecosystem.