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Cloud telephony: The game-changer in the logistics industry

July 17, 2020

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India’s logistics sector is expected to reach USD 215 billion by the end of 2020 and cloud telephony is only propelling this progress further

The COVID-19 pandemic has merely highlighted the need for logistical services across the world. Projected to grow at a CAGR of 10.7%, between 2020-2024 in India, the logistics industry is one of the fastest-growing sectors in the country. This has been propelled by a variety of factors such as the rise in demand, and most importantly, innovation-driven by new-age technology. Currently, the logistics industry is undergoing a major transformation in the way it functions, and one of the key elements powering this transformation is cloud telephony.

Cloud telephony, also called cloud calling, is a kind of unified communication systems as a service (UCaaS), providing voice communication services through a third-party host. This UCaaS replaces the need for traditional enterprise telephone systems. Cloud telephony is now playing an instrumental role in helping the logistics industry evolve. Here’s how.

The rise of cloud telephony

Since there are several disruptions in the supply chain and heightened demand, today, several companies are opting to outsource their logistics, i.e. third-party logistics. In India alone, there has is predicted to be an 8.3% rise in third-party logistics services between 2018 and 2022. This brings out the still untapped potential of the industry. However, for third-party logistics to prosper, there needs to be a robust communication system that allows the operations to be carried out with utmost efficiency. This is where cloud telephony comes into the picture. For a majority of logistics service providers, cloud telephony has emerged as a savior to help address the multitude of issues in traditional communication systems. So, what are these so-called problems that the industry faced?

Traditional methods of communication relied less on technology, giving way to more errors in various ways such as wrong inputs, misplacing data, and other common human errors. Additionally, even when logistics aggregators adopted a digital method, they faced issues such as unreliable broadband connections, and misplaced or delayed deliveries, which resulted in dispute resolution issues due to lack of real-time updates. With such gaps in communication, third-party logistics providers were in dire need of a bolstered communication system that allowed no room for errors such as the above-mentioned, paving the way for cloud telephony to take center stage.

A game-changer

With a plethora of benefits, cloud communication systems bring in a new dimension to the way the logistics industry functions with features such as real-time updates and tracking and reduced resolution time. Apart from these, they also optimize the cost for both the company and the third-party logistics aggregators. Through the aforementioned, cloud communication systems help in augmenting the supply chain and overall efficiency.

Also, cloud telephony allows easy monitoring of customer-facing calls using analytical tools, which facilitate easy intervention in case of any issues/discrepancies, thus side-stepping disruptions in the supply chain. In cloud communication systems, the level of convenience is what makes it highly beneficial and is pivotal in transforming the logistics industry. With SMS alerts to notify customers of potential delays in deliveries or confirmation of orders placed, cloud telephony has helped in revamping the communication structure in the logistics sector.

Offering tailor-made Cloud Telephony Solutions for the logistics industry, cloud telephony is only evolving further each year. More and more third-party logistics aggregators are opting for cloud telephony to serve their customers better. With such cutting edge technologies, the logistics industry is well on its way to achieve exponential growth and enhance its services in the future.


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