logistics supply across also matching efficient new

techsuch May 9, 2021 0 Comments

8 new tech trends shaping the transport and logistics industry in 2019Despite 20 years since the democratisation of the Internet, many sectorscontinue to carry out daily operations using “low-tech” solutions and this isparticularly evident in the logistics industry. In the market for deliveringlocal and regional goods, communication is largely done through email andtelephone correspondence and in some cases even faxes. Once you consider thevast network of actors involved in a typical supply chain ecosystem combinedwith the fast-rising standards for operational execution, you can begin toimagine how fast and efficient communication becomes a critical driver forlogistics performance.Fortunately, many segments of the logistics space are now undergoinginnovation with a new wave of startups shaping a modern supply chainmarketplace that embraces game-changing technology. Below are some of thebreakthrough trends we are already seeing gain traction in transport andlogistics for 2019.### Efficient Matching and RoutingThe wide system of stakeholders involved in logistics means matching androuting deliveries can be a highly manual and hyper-fragmented process. Now,companies are actively turning to intelligent algorithms to automate theprocess of matching shipments with a capacity to maximise time and money.While manual matching is limited in the number of shipments that can bearranged, automated matching gets even better and faster with the moreshipments executed (i.e., easier to find a relevant match and optimise routes)these matching and routing algorithms are also dramatically lowering the costsincurred from ‘empty miles’, the distances travelled by drivers with emptytrailers, saving fuel costs lowering air pollution.### DigitalisationUp until now, logistics and manufacturing have been considered less digitallymature than other sectors, marked by rigid legacy systems such as paymentshandled on paper, often causing long delays for carriers to receive cash.The introduction of modern online payment systems is one example of howdigitisation is now quickly facilitating transactions between shippers andcarriers, not only improving customer satisfaction and trust but also drivingefficiency and lowering costs by consolidating all payments into one,efficient platform. As the logistics sector becomes more digitally mature,business processes become simplified, lowering risk and driving revenue withimproved efficiency. The increasing digitisation of the supply chain.### Blockchain TechnologyBlockchain tech is expected to be increasingly leveraged by stakeholdersacross logistics and transport to deliver more transparency and accountabilityin managing and tracking documentation and assets across the supply chainprocess. Leveraging blockchain distributed ledger technology can not onlyimprove service levels by providing end-to-end visibility of the status ofevery shipment but can also improve on-time rates and allow for more proactiveincident management. New applications are already introducing smart contracts using blockchaintechnology. When a shipment order is made, a smart contract can be initiatedand upon delivery and quickly executed if all validations and intermediatepoints are verified.### Data AnalyticsInformed data-driven decisions are fast becoming the norm across logistics for2019 for stakeholders across the supply chain ecosystem. The data accumulatedfrom daily operations can best inform companies of upcoming peak demands orfluctuations and more importantly, provide insights into supply and demandforecasts, route optimisation, fuel consumption and turnaround times, each ofwhich can strengthen competitive advantage within the marketplace of third-party logistics. Shipment data can also be aggregated at the warehouse levelusing loading and unloading times for a seamless flow of inventory control andshipping management.### Automation and IoTAutomation and the Internet of Things means that the process complexity oftenfound across certain points of logistics operations can now be streamlined forsmoother, more efficient operations. Emerging software and hardware such assensor and asset tagging are shaping more reliable, connected environments formore cost-effective and tighter asset control. Inventory can be better managedin warehouses and cargo better controlled during transit. IoT based systemscan also help for predictive maintenance in logistics and real-time insightsinto performance, for example through the application of visual and acousticsensors on rails and tracks.### ElasticityThe ability to remain agile and adapt fast to seasonal demands has alsoreinforced the importance of elasticity within the supply chain. Being able toshrink or expand capacity on demand in accordance to peak periods whilstmaintaining excellence in customer service is critical. To remain agile butlean, many companies now partner with third and fourth party logistics (3PLand 4PL) to help leverage the resources and expertise of others. The globalthird-party logistics market is predicted to grow at around five percent CAGRduring 2016 to 2024, with the market expected to attain a size of about USD1,054 billion by 2024.### Warehousing RobotisationWith the advent of new age fulfilment centres such as those of Amazon andZalando, the integration of robotics into sorting, picking and shippingproducts and cargo will continue to transform warehousing processes inLogistics. Rather than the automation of robotics replacing the workforcehowever, increased efforts are being made to integrate robotics in a naturethat is supportive to the existing workforce as opposed to an innovationreplacing it. While in 2010 US Venture Capitalists invested $30Million intorobotics startups, by 2013 this had already increased to investments totalling$170Million.### Smart Road TechnologyWhile still in the earlier stages of research, startups based in the US arealready emerging with goals to bring technological innovations literally on toroads and highways themselves. The integration of solar panels into hundredsof miles of asphalt surfaces for example, could have the ability to generateenergy, melt snow, reroute traffic and even possibly direct autonomousvehicles. Smart highways such as these could provide energy to power nearbystreets and lights as well as quickly detecting irregular traffic activitiesor disturbances to flag hazards to oncoming motorists. This could yield majorpotential for a smoother flow of traffic and routing to bring even moreefficiency into future logistics and road transport operations.This is a guest blog by Salvatore Scialdone, the Global Head of Supply atOntruck, where he leads the development of the global carriers’ strategy anddrives its execution across countries and functional teams. In his previousroles at Ontruck, he launched the UK business and then covered the role of UKHead of Operations.Ontruck was founded to develop technologies to make the road freightexperience a smooth and efficient one for both truckers and companies who sendshipments. They do this by drastically reducing the amount of empty kilometerstravelled by goods vehicles, therefore optimising their use and utilisation.Stay tuned to Silicon Canals for more updates in the tech startup world.> These 10 standout tech startups have been selected for Future Hamburg Award> 2019

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