admin Technology is bringing about change in all walks and aspects of life. Be it something as simple as a coffee machine or something as grand as rocket science, technology is responsible for massive advancements in all fields. And logistics is no different. It is quite obvious the effect technology has on logistics and supply chain. Mega corporations are earning tremendous profits all thanks to technology. But what is logistics?
Today’s business runs on logistics. In the current era of globalisation and businesses operating worldwide, logistics is the fundamental aspect of any organisation. It is the process of planning and executing the transportation and storage of goods in an efficient manner from the point of origin to the point of consumption. The aim of logistics is to meet customer requirements in a timely manner and at the same time not sacrificing the vast effectiveness of the operation.
Initially, the idea of logistics was mainly involved in the movement of military personnel and equipment. While logistics is as important as ever in the military, the term today is more common in the context of movement of commercial goods within the supply chain.
From self-driving delivery vehicles and warehouse robots to time – and cost – saving data insights, here are some of the common technology trends that are transforming logistics and its management.
- Automation
Automation is a very common term that is being used in today’s world. Automation can be explained, simply, as a way of getting rid of mundane, repetitive tasks. There is no doubt that if any field of work has mundane, repetitive tasks, it is logistics. It involves all sorts of moving, transporting, loading, unloading, keeping and making schedules etc. Tasks, that are more suitable by automotive devices like robots and computers. This not only frees up humans from such tasks, but also has wide ranging advantages. For example, there is less human error. Automatic unloading and loading done by self driving forklifts can reduce a lot of wastage and breakage as these operate with the utmost precision, something that even the best forklift driver lacks. At the same time, these automatic devices can do tasks that cannot be possible by humans. For instance, handling heavy items. These devices can work all around the clock and even the harshest climates and locations. This can reduce considerable amounts of warehouse costs, as they can be set up in remote locations.
- Artificial Intelligence and Machine Learning
Another couple of common terms in today’s modern era. Artificial Intelligence and Machine Learning. Commonly referred as AI/ML, these concepts are transforming the world rapidly. AI and ML are used to predict and forecast future trends based on historical data. The most common application of AI and ML is in weather forecasting. The AI and ML prediction models are used to figure out the pattern of weather in the upcoming days, based on historical data as well as other factors like current weather conditions.
The same can be applied in logistics as well. The use of AI and ML to identify every link within the supply chain is set to continue. AI, when used for decision-making in the supply chain, reduces human error. AI in warehouse management makes the planning process much easier by speeding up analysis time.
In the same vein, demand prediction is being made much easier despite having to factor in multiple demand-influencing considerations and past experiences, as AI will compile all reliable prognosis quickly. Last mile logistics analysis and optimization, supplier selection, and workforce planning are processes powered by AI and ML. In short, AI and ML offer visible results and are useful tools in solving some of the most complex issues in logistics.
- Blockchain
Whenever we hear blockchain, we immediately think of cryptocurrency. However, that is not its only application. Blockchain can be used as a decentralized ledger technology which has the potential to revolutionize the logistics industry. The way it works is it removes multiple layers of complexity through secure, transactional links that are transparent. The result is that blockchains can take the paperwork out of bills, reduce delays, avoid fraud, and get rid of costs across supply chains altogether.
At the moment, blockchain technology has many hurdles that it must surmount. Its association with questionable cryptocurrencies and its scalability is something that needs to be addressed with proper care. But look to the future, and the safe interconnectivity offered by blockchain could drastically increase payment speeds and bring a greater degree of transparency to an industry that can be frustrating in its bureaucratic complexity.
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