Supply Chain & Logistics: Predictability and Visibility are THE FUTURE
The history of the Logistics and Supply Chain Industry dates back to the decades.
Today, we are in the age of digitization but still, more than 85% of logistics is following brick and mortar style in operations.
Logistics seems to be only one of the left out industries where technology disruption is yet to happen in full-scale.
With the nation undergoing a lockdown due to COVID-19, the inefficiencies in the logistics got the spotlight. With only a limited workforce allowed to work at warehouses, manufacturing plants, companies serving Retail, FMCG and Pharma have faced huge challenges in terms of managing the daily activities.
The people across the country started looking at e-commerce/e-tailers for their needs, including daily groceries. This led to the huge demand for last-mile logistics and adding to its importance of visibility.
Living in the world where we can access anything at a click, still many companies across in logistics & supply chain didn’t have access to live track their logistics vehicle/operations.
One of the main reasons for increased digital penetration recently is COVID 19, Many industries have seen a growth of digital users of more than 150% in the last 4months. It is clear that people are on digital now and prefer businesses that they get access at a click. So, modern logistics has to transform accordingly, adopting the New Normal. i.e making technology an integral part of operations.
What worked pre-covid doesn’t apply anymore! So it is THE Time, we should focus on tech-driven logistics.
How technology can shape the logistics and supply chain
Artificial intelligence, Machine Learning, Data Science and BlockChain are some of the buzz words we hear every once in a while across multiple industries when we talk about technology. Let’s see how few of them can be implemented in logistics,
One of the important metrics in the logistics industry is “delivery-time”, if the delivery time exceeds the expected timeline, then the value of the goods transported goes down. So it is very crucial to ensure that the deliveries are always ON-TIME. With artificial intelligence, we will be able to predict the delivery times in advance based on multiple factors like route, distance, weather forecasting. Not just the prediction, with the integration of maps, we will be able to live-track the location of the delivery executive/truck, which will help the customer to be prepared for receiving his/her order and also improves the overall user experience.
With Machine Learning and Data Science, we will be able to develop systems that help us with insights on user behaviour and improve demand forecasting accuracy.
BlockChain can help make logistics more efficient and transparent, making it the perfect technology to facilitate shipment tracking, global contracts and payment processing throughout the logistics industry.
Why is it so important to have technology in place?
Though being a decades history industry, less than 5% of the companies use logistics tech platforms, making it a highly unorganized sector.
We have been hearing about the above-mentioned use case since some time now, but the progress and adoption are very low. It is largely perceived with the addition of technology into a process, brings in a lot of additional costs, but it is wrong. Technology is an enabler which makes processes effortless at a meaningful cost.
With an efficient technology platform in place, we will be able to achieve,
- Reduced Costs
- Ease of Management
- Transparent Data
- Demand Prediction
Most of the processes that go into operations could be automated, for example, daily vehicle rostering and assigning vehicles for transportation. Remember the effort that goes into scheduling vehicles for a company that has more than 30-50 Vehicles operating in a single day? It takes god-level efforts and we would need more than 5people, just for assigning routes to those vehicles.
But not any more! With automation in place, a system can do automatic routing considering the real-time traffic in just a few seconds. All the stakeholders can also view or track the whole process using their mobile devices.
With automation in place and the ability to track & monitor, the number of man-hours required would considerably decrease by nearly 50%. And with the advanced route optimization, we can optimize the route distance and travel time.
And also in terms of safety & security, technology is a great bet.
Ease of Management:
In general, transportation involves not just vehicles but also people, the more the people the complex it gets in terms of communication and management. It required multiple communications between the teams to stay updated on the process. i.e Vehicle Location, Trip Change Communications etc.
Having a customized technology platform helps us in rostering, tracking and monitoring of the overall transportation process at any given time.
It’s all about Data! Being in an industry where too many people and numbers are involved, it is very crucial to have transparent and accurate data processing methods in place.
A single number could mess up any large data, and any miscommunications concerning data can put our business to risk. As technology streamlines the data collection at various stages of the process it could also present the same data to stakeholders at any given time pertaining to transparency. Having transparent data helps the teams stay updated at all times which is a catalyst in building trust among the stakeholders.
No matter what, Businesses have to keep moving forward. It is very important for any business to have an outlook on the market/industry happenings with a special focus on factors that could affect our business performance.
Only when we are clear on the business requirements, our logistics planning could get better. So with today’s technology of demand forecasting, we can predict the order traffic based on our previous year data, current growth percentage and also considering the overall market performance.
After all, technology is meant to make our life simpler. So using it as an enabler only helps us streamline the current process, not the other way.
To lead the logistics industry towards digitization and improve the overall processes, we are committed to building a Global SaaS for logistics.
Being one of the fastest-growing corporate transport companies in India and also where our technology is recognized as “The Next Global Tech 50”, We started logistics to drive Urban transport towards Smart Mobility.
It’s been just around 6months we started logistics services, we are now working with some of the major brands in the country like Amazon, Flipkart, Delhivery, Myntra, JSW etc. Our current focus is to build a technology platform for logistics across the world.
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