Technology

How is Technology Impacting The Supply Chain In The Logistics Industry?

Recent changes and new regulations in the freight and logistics industry are meant to increase driver safety while improving industry-wide efficiency and service delivery.

This is achieved by implementing new rules about hours of service (HOS) and equipment mandates, and with new technologies like artificial intelligence (AI), it’s easier to meet these demands.

Technology has made the biggest impact in the area of supply chain management. Those at any level in the business have a lot of questions about the use of AI for shipping and planning. For those who don’t understand the freight and logistics industry, just know that these changes will allow shippers and manufacturers to provide better service at a more competitive price.

The freight and logistics industry is one badly in need of modern technology.

Ashik Karim of 1Shift Logistics, an end-to-end logistics solution explains, “We have seen the telecom, cable, and auto industry transform, the logistics industry has always lagged, because it’s been largely a manually-driven industry” he said.  This is important to us and we see a way to improve this industry with technology, translating to satisfied customers, drivers and shippers. Everyone wins with better technology.

He continued: “Our desire is to be a part of this logistics technology evolution, that drives efficiencies to an industry that needs it badly.”

The Difference Between Supply Chain Management and Logistics

Industry outsiders take the supply chain for granted. They’re happy when merchandise is where they want it and when, and they’re irate when it isn’t.

Supply chain and logistics are sometimes used interchangeably, but they’re not the same. Logistics is a component of supply chain management that deals with the planning side, and transportation deals with delivery. Supply chain management oversees the whole process from A to Z and every point in between.

Challenges Facing Industry Operations and Service Delivery

Freight and logistics are a global affair, which places tremendous demands on every link in the supply chain. It also includes challenges toward maintaining efficiency, reducing costs, and overseeing end-to-end business processes. The trick is to gain a competitive edge in a global marketplace while producing sustainable economic and market value.

That’s a pretty tall order!

The goal in this ever-changing environment is to better meet the demands of customers. That’s where technology like AI come into the picture. It allows instantaneous connectivity at all levels and permits a proactive approach that anticipates issues and offers solutions before problems occur.

How Does Advanced Technology Streamline Supply-Side Logistics?

Just a few decades ago, the delivery side of the supply chain could take up to two weeks from warehouse to customer. Most systems were manual, but those that were automated were slow, performed reporting and analysis in retrospect, and were prone to glitches and errors.

Progressive tech modernizes B2B transactions using cutting-edge technologies that reduce the cost of doing business, improve decision-making transparency, and embed a deeper level of predictability into the process.

Technology meets the challenges of the industry and achieves the above goals by:

∙ Managing loads from warehouse to destination

∙ Providing real-time, multi-channel reporting and analysis

∙ Enabling live capacity that leads to deeper, more meaningful market understanding

∙ Seamlessly integrating all automated systems

∙ Reducing routing and payment delays

Automation that’s rooted in machine learning tech also helps on the ground by providing truckers, warehouse workers, and service reps with current information regarding fuel prices and availability, weather, and road conditions that could affect deliverability. This capability also allows management to make more incisive, data-driven decisions about pricing on the spot. Timely delivery of such information also enables insightful reporting and analysis regarding historical facts in order to predict future outcomes.

Products like 1Shift Logistics use machine learning to make their platform more responsive and intuitive in order to provide real-time reporting and analysis. Machine learning is a product of artificial intelligence that allows oversight to be done automatically in the background, independent of human input. This improves safety, efficiency, and service, which are three of the main pillars of any business.

About the author

Ganesh Kolekar

Ganesh Kolekar is a graduate and geek. He is the man behind keeping the quality of the posts and manages the content part on the website.