Today the supply chain industry has been transformed globally from increasing customer expectations and new technologies to emerging competitors and growing uncertainty. Customers expect quick and buying anytime, anywhere because of abundant choices. Companies should be equipped to meet customers’ expectations and cope with shifting paradigm.
Following are some of the ways which are transforming the logistics of the world:
Big data: today any logistic firm that wants to survive or lead needs to rely on big data. According to GloablTrade’s study, 98 percent of third-party logistics companies and 93 percent of shippers believed data-driven decision-making is essential to supply chain activities. The study shows that logistics providers have realized that big data has intrinsic value and they have to utilize big data to transform the way they operate.
Blockchain: The Blockchain technology is an emergent concept which enables the decentralized and immutable storage of verified data. The blockchain is a distributed system which holds benefits over centralized architectures because it provides the same, verified information to all network members. It is able to record the transfer of assets between two parties without any need of a trusted intermediary.
Artificial intelligence (AI): AI transforms the logistics industry by making processes more efficient as companies are able to remove manual work which results in better quality and speedy work. Companies should collect, aggregate, and harmonize accurate data from legacy systems, cloud-based applications, and IoT devices and sensors, to utilize AI. These data can be processed for realizing trends and insights.
Machine Learning:Machine learning is a subset of AI, and AI cannot be developed without machine learning. Machine learning algorithms are able to provide recommendations that can be completely dependable. Predictive algorithms help to detect fraudulent invoices or predict the future as delays in air freight.
Global logistics is becoming more complex and interconnected every day. Logistics should adopt transparency, comprehensive analytics, and cognitive technologies to gain competitive advantages. Logistics companies should establish digital supply network that integrates all supply chain entities into a single view to visualize and monitor performance and risk.