5 Tech Trends overhauling Logistics Industry for a Smarter Supply Chain system
By Mr. Eugene Panfilov
Currently, the entire logistics process of transportation and supply chain
—starting with sourcing raw materials to reaching end products to consumers’ hands
—is undergoing a sea change
Different segments involved in the process have been witnessing advancements over the past decade, but the pandemic has speeded it up further. With the inclusion of such smart technologies as AI, ML, IoT, Blockchain and so on, the supply chain management model has now become a full-stack automation system. The latest supply chain processes under the fourth industrial revolution use these advanced technologies for better connectivity, optimizing resources accurately, conducting analytics and automating tracking processes.
Companies that do not transform their supply chain ecosystems completely would already be at a great disadvantage, but this will only grow with each passing day if they do not implement the changes soon.
Smart Tech
Nowadays, such smart technologies as ML and AI are an integral part of the logistics and supply chain industry that enables advanced transportation, smart route mapping processes and much more. AI is helping with such changes as automated warehousing systems, sustainable solutions and so forth. Additionally, AR and VR technologies are ready to help with human intelligence, including entire supply chain planning, flexibility, responsibility and customer loyalty, besides making the entire process safe. This blend will lower labour intensity and save time and money, as well. It will accelerate the whole process, too.
Digitization will bring in further advantages. With customers at the centre, manufacturers—along with supply chain players—must explore new developments so that customers’ digital buying experience improves. These smart technologies will not only speed up the development of the supply chain process, but also help achieve a competitive edge. Moreover, technologies with connected sensors will be collecting data to further assist in developing new products and enhance the overall supply chain management system.
Using AI & ML
AI and ML in supply chains can deliver powerful optimization capabilities required for improved demand forecasting, more accurate capacity planning, enhanced productivity, lower supply chain costs and greater output, all the while fostering safer working conditions. An efficient warehouse is an essential aspect of the supply chain. AI-powered tools can aid in timely retrieval of items from the warehouse and ensure a smooth journey to the customer. These technologies can help businesses adapt to changing market conditions and learn from past errors, improving their predictive accuracy over time. AI and ML can also be leveraged to automate the painstaking repetitive tasks that were earlier done manually.
AI and ML-powered businesses can examine huge amounts of data, use complex algorithms and take decisions by using data. In addition, AI can analyse workplace safety data and inform manufacturers about the possibilities of any risks. Use of AI and ML technologies by e-commerce sites can even help predict which colours will sell during a particular season, where these orders may come from and what price ranges people would prefer. Besides, AI-enabled systems reduce dependence on manual activities, thereby making the entire process safer and faster.
Importance of IoT
IoT is being used widely in everyday objects and its popularity is growing by the day. We are already witnessing the development of mobile-based apps for real-time fuel monitoring and GPS tracking systems. Such IoT devices measure the amount of fuel with ultrasonic fuel sensors. When the fuel in a vehicle’s tank reaches a certain level, the driver gets a notification on his/her mobile application so that they can keep a lookout for the nearest pump location for refueling. The GPS tracking systems show the vehicle’s current location and help drivers find the nearest petrol pump.
Logistics companies also use IoT devices to track vehicles, inventory and so on effectively. These sensors help monitor shipments to improve efficiency and visibility. So, logistics companies, of all sizes, are joining IoT startups for adding visibility.
Cloud Solutions
The next big thing for successful supply chain management is going to be Cloud-based solutions. The outdated and local supply chain system will not be good enough. Businesses that require precise, flexible and easily available solutions to stay relevant must adopt the latest digital transformation trends. Besides, SaaS approaches are the best for enhanced supply chain systems and are also very effective. SaaS is not just safe, but also reliable, allowing supply chain service providers to access data any time and from any location since the data is stored in the Cloud. Cloud-based API systems for integrating with internal software would ease the operations via third-party service providers.
Visibility
With online shopping becoming the new normal, customers demand real-time information more than ever before. So, supply chain companies are now incorporating greater visibility solutions into their systems, with Radio Frequency Identification (RFID) technology tracking products in real time. In a significant development in the entire supply chain ecosystem, visibility allows goods to be tracked from the manufacturer to processing units to end-users. More visibility helps supply chain players understand the overall condition, with the status of each link. It ensures that all stakeholders—even customers—have easy access to data.
India’s supply chain logistics ecosystem is advancing at a rapid pace. There is no doubt that manufacturing growth of India will drive growth in Supply Chain sector. The synergy of smart technologies is reshaping the logistics landscape, presenting both challenges and opportunities for companies willing to embrace the technological sea change.
(The author is Mr. Eugene Panfilov, Managing Director, Borzo India and Regional Director, Borzo, Brazil. and the views expressed in this article are his own)
