The logistics industry was previously known for complex systems, bottlenecks, and near-complete opacity. However, the developing technologies are transforming the industry for the better and propelling it forward. All aspects of the logistics sector benefit from the advancements in technology, including trucking transportation, international transportation (by sea and air), supply chain management, and shipment monitoring. Technology helps to restructure the entire distribution set-up to achieve higher service levels and lower inventory and lower supply chain costs.
Let’s take a deep dive into logistics technology and see how it affects the industry.
Shipment Tracking Systems
Previously, customers booked shipments, received an estimated delivery date, and then we’re left in the dark, unless they decided to make a phone call. Today, internet and software advances allow customers access to shipping and tracking systems 24/7. Not only does this enhance the user experience, but it saves time and money for the company as well.
Enhanced GPS Accuracy
Long gone are the days when you printed out directions from the computer before you left the house. Now almost everyone uses GPS, whether built-in on their vehicles or their cellphones. The accuracy of these devices has drastically increased throughout the years, not only helping frustrated, lost drivers but also improving the supply chain. The advanced accuracy of GPS allows for increased productivity and satisfied customers, by tracking trucks’ locations and improving hauls through access to updated traffic data.
Electronic Data Interchange
EDI describes both the capability and practice of communicating information between two organizations electronically instead of a traditional form of mail, courier, & fax. The benefits of EDI are:
1. Quick process to information.
2. Better customer service.
3. Optimize paperwork.
4. Increased productivity.
5. Improved tracking and expediting.
6. Cost efficiency.
7. Competitive advantage.
8. Improved billing.
The development of an Inter-organizational information system for the supply chain has three distinct advantages cost reduction, productivity, improvement, and product/market strategies.
Route Optimization
Truck routing, delivery schedules, and fleet management software solutions help hundreds of private fleet and logistics operators to cut transportation costs every day – giving a fast return on software investment.
Some of the uses of this route optimization are:
• Reduce total mileage for lower fuel bills
• Fully utilize the fleet for maximum distribution efficiency
• Cut overtime and agency bills with improved driver productivity
• Optimize the distribution networks to reduce overall transportation costs
Big Data driving Big Automation
With millions of packages moving across the globe passing through various touch-points of complex networks and multiple stakeholders. This creates a multitude of data points and enormous potential to improve both delivery times and cost and to achieve greater visibility across the network. With the spread of sensors and mobile devices, not only can a customer get Uber-type tracking for their consignments. Data on congestion, strikes, weather conditions, etc. would enable carriers to provide accurate and predictive assessments of potential delays and disruptions to customers and adjust routes and capacity accordingly.
The Internet of Things (IoT)- Logistics In The Future
The Internet of Things (IoT) is revolutionizing the logistics industry. By connecting nearly everything from cargo to people, the IoT is enabling logistics companies to track and trace freight in real-time, make data-driven decisions that improve operational efficiency, perform predictive maintenance on assets and infrastructure, and much more. Several products are now available with built-in sensors and Wi-Fi capabilities, ranging from cell phones to automobiles. Everyone has easy access to Wi-Fi and the internet, which connects them to nearly everything. Whether it’s about lowering costs or minimizing hazards, the Internet of Things is giving the supply chain many options.
AI and machine learning in the supply chain
Logistics companies are also employing Machine Learning, a subset of Artificial Intelligence technology, to automate the supply chain and uncover insights that would otherwise be lost in the avalanche of data. AI has the potential to have a huge impact on the global supply chain. This can be accomplished by automating time-consuming and error-prone manual tasks.
Conclusion
Technology has been undergoing remarkable transformations, particularly in the logistics industry. Systems will better integrate with the environment, and technologically knowledgeable personnel will operate intelligent machinery to aid in logistics. Logistics companies may now guarantee same-day delivery thanks to technological advancements on numerous fronts. The effects of technology in the logistic industry that can be mentioned are improving cooperation relationships in internal and external dimensions, increasing responsibility, creating new relationships with customers to identify their needs, developing sales channels, improving performance, and improving the competitive position of the chain.
