Role of Technology in Supply Chain: How Technology is Revolutionizing the Logistics Industry
Technology is currently being rapidly integrated across every business sector with logistics undoubtedly being no exception. The role of technology in supply chain and logistics operations has become pivotal, with studies showing that companies implementing advanced technologies can reduce logistics costs by up to 15%. Artificial intelligence, automation, AR/VR, Internet of Things (IoT), etc have become essential for logistics businesses to transform traditional supply chain practices and gain competitive advantage in the industry. Several companies use advanced technologies to predict demand and manage inventory to ensure that they are ready to tackle future challenges.
Key Technologies in Supply Chain and Logistics
1. Automation and Robotics
Automation and robotics are one of the popular trends in logistics. They are the leading innovations with the potential to disrupt the industry or provide a competitive advantage with the power of process automation. Automation and robotics enable automated picking and sorting systems and autonomous guided vehicles streamline warehousing operations. These technologies reduce human errors and enable employees to focus on strategic efforts.
2. Artificial Intelligence (AI)
Smart logistics providers are not looking to automation or artificial intelligence as a one-stop solution currently. They are instead leveraging a blend of advanced technology and human reasoning. The truly beneficial application of this technology as it stands today is in allowing personnel to make better, more sound decisions based on automated data capture and synthesis. Over the past few years, many industry providers have worked to incorporate automated processes and artificial intelligence platforms into their business offerings.
3. Blockchain Technology
Blockchain is also a very popular technology in logistics. This technology’s disseminated and immovable nature will grant access to single and required portions. It provides a unique digital identity with an origin, manufacturing details, certifications, and ownership. Blockchain allows for transparency and visibility into the movement of goods from the point of beginning to the final destination. Many different industries could benefit by integrating the digital ledger known as blockchain into their logistics processes.
4. Supply Chain Visibility
Visibility has been a logistics technology trend for quite some time, but its prevalence and importance are higher than ever. It functions as a strategic advantage in customer service that allows parties to track shipment status, location, arrival times, departure times, and other vital data. By having this level of perception into the supply chain, logistics providers and shippers alike can intervene where and when it is necessary to prevent missed deliveries.
Essential Online Tools for Logistics Professionals
Logistics professionals need quality online logistics tools to help do their daily business with ease and mobility while ensuring a quality experience for their customers. For all developing businesses, it’s a smart choice to implement widely used and affordable technologies to do business, especially from mobile phones.
The following table summarizes key online tools available for industry professionals:
| Tool Name | Primary Function | Key Benefit |
|---|---|---|
| WebFleet | Workforce operations control | Provides information in real-time from phones and laptops. |
| Jump Stock | Inventory optimization | Helps with forecasting, plan inventories, and budget for resources. |
| Scandit | Advanced barcode scanner | Cross-platform optimized; scan doesn’t have to be perfect to be processed. |
| Co-pilot | Mapping and routing | Helps truck drivers avoid traffic and finding more efficient routes. |
| Evernote | Organization and filing | Best tool for organizing important files, documents, and images. |
Data Science and Strategic Management
One of the fastest-growing business competencies comes in capturing, synthesizing, interpreting, and acting on data. With an effective data strategy, organizations can improve supply chain performance, decrease transportation spend, and effectively manage customer expectations. Leveraging data can help you identify optimal shipping scenarios and the best carriers, and other critical transportation insights. Additionally, technology establishes better collaboration between suppliers and partners which creates a reliable supply chain ecosystem.
- Optimized Data Flow: Capture and synthesize vast amounts of supply chain data.
- Warehouse Efficiency: Streamline warehouse operations with automated picking systems.
- Security: Protect your data with high security via blockchain applications.
- Customer Experience: Provide unmatched customer experience through real-time tracking.
