Standardisation is Key to Unlocking the Full Potential of Digital Logistics

Logistics is undergoing a seismic digital shift that is transforming how goods are moved, tracked, and managed across global supply chains.

Yet, despite significant investments in technology, many logistics players still struggle to realise the full benefits of digitalisation.

The reason is simple: without common data standards, digital solutions remain fragmented, data remains siloed, and collaboration across the supply chain breaks down.

The Challenge of Fragmentation

By its very nature, the logistics industry is inherently complex involving multiple stakeholders carriers, freight forwarders, customs authorities, warehouse operators, and retailers spread across different geographies and regulatory frameworks.

Each party often relies on its own digital platforms, many of which are proprietary and incompatible with others.

Smarter AI Starts with High-Quality Data

For example, a shipping line might use one system for booking and tracking, while a port terminal uses another for gate operations. Meanwhile, customs authorities rely on yet another data system for declarations.

If these systems cannot communicate seamlessly, data has to be re-entered, documents duplicated, and visibility across the supply chain compromised. Rather than streamlining operations, digitalisation ends up creating additional layers of complexity.

This fragmentation underscores why standardisation is critical: it establishes common frameworks, data formats, and processes that allow diverse digital systems to connect and operate in sync.

Why Standardisation Matters in Logistics

End-to-end visibility

A supply chain is only as strong as its weakest link. Without shared standards, real-time visibility is nearly impossible because data exchanged between systems is inconsistent. Standardised data formats enable smooth information flow, giving shippers and consignees a clear line of sight from factory floor to final destination.

Efficiency and Cost Reduction

Manual re-entry of data and reliance on paper documentation remain widespread in logistics. By adopting standards for electronic documents such as electronic bills of lading (eBLs) or digital customs filings, companies reduce administrative burdens, minimise errors, and accelerate cargo flows.

Interoperability and Collaboration

Logistics thrives on partnerships, but digital silos hinder collaboration. Standardisation ensures interoperability, so systems across carriers, ports, and inland transport can “talk” and understand each other.

This creates a level playing field where even smaller operators can integrate into global digital networks without costly custom solutions.

Security and Compliance

With rising cyber threats and stricter regulations, secure and standardised processes are essential. Globally recognised standards, such as ISO frameworks for information security, not only safeguard data but also help logistics providers comply with customs, trade, and safety regulations in multiple jurisdictions.

Scalability and Innovation

When digital solutions are built on shared standards, they can be rolled out at scale without reinventing the wheel for each new partner or region. This frees resources to focus on innovation—whether through predictive analytics, AI-driven routing, or autonomous delivery solutions.

Real-world progress

The transport and logistics industry has already seen tangible benefits where standardisation has been prioritised.

• Digital Container Shipping Association (DCSA): Leading carriers formed DCSA to establish standards for digital documentation and data exchange. Their push for electronic bills of lading (eBL) adoption promises to reduce delays, cut costs, and improve cargo visibility.

• Port Community Systems: In ports such as Rotterdam and Singapore, standardised platforms allow seamless data exchange between terminals, shipping lines, customs, and logistics service providers. This improves transparency and speeds up vessel turnaround times.

• Customs Modernisation: Initiatives like the World Customs Organization’s Data Model provide a global framework for customs data exchange, enabling faster and more consistent cross-border trade.

The way forward

To unlock the full potential of digitalisation in logistics, the industry must make standardisation a collective priority. This requires:

• Collaboration Across Stakeholders: Carriers, freight forwarders, technology providers, regulators, and industry associations must work together to align on common standards.

• Global Harmonisation: Standards must be internationally recognised to avoid fragmentation across markets. Regional silos undermine the efficiency gains of digitalisation.

• Continuous Evolution: Standards should not be static. As technologies like AI, blockchain, digital twins evolve, so too must the frameworks that guide their applications.

Technology alone is not enough

Digitalisation has the power to transform logistics into a more efficient, transparent, and resilient ecosystem. But technology alone is not enough. Without standardisation, the promise of digitalisation is being broken by fragmented systems and incompatible processes.

By embracing common standards, the logistics industry can unlock true end-to-end visibility, streamline operations, and foster innovation at scale. Simply put, standardisation is the key that turns digitalisation from isolated innovation into industry-wide transformation.

Read More: Data Standardisation and Data Sharing Needs to Accelerate in the Supply Chain