Where Logistics Companies Can Invest To Improve The Glenn Industry
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Over the past year, the global pandemic has changed much of what is considered the status quo. From education to transportation, everyone involved had to take a deep look at how things worked and how they would change due to coronavirus disease (COVID-19). But, now that we’ve had a full year of adjusting to new hurdles, it’s time for industries to start thinking about the long-term changes that need to be made to thrive in the new normal. Now is the time for logistics to start investing in technology.
With the US government recently unveiling its infrastructure bill, the priority is clear – a plan is going to be put in place to fix the country’s ailing bridges, roads and airports. This will undoubtedly help the supply chain and logistics industry to make the necessary improvements, but the biggest impacts will be felt by carriers. Carriers will now have the tools to be more efficient in their day-to-day work, which means they will start to expect the shippers they work with to meet them at the same level. Simply put, it’s more crucial than ever for shippers to start investing in the technology and software that will keep them in step with the rest of the industry by enabling a faster and more accurate process for routing. shipments.
The benefits of a technology-driven solution
The logistics and supply chain industry has always been about relationships. For too long, many in the industry have associated technology with the demise of these relationships, but they haven’t. Technology solutions like cloud computing, artificial intelligence, and machine learning actually help foster relationships. Thanks to technological solutions, shippers can be more efficient in their communications with carriers and vice versa, which allows businesses to operate better. And, the industry is finally starting to take notice of this trend. In fact, companies have invested $ 28 billion in logistics startups, almost all of that investment having taken place since 2015, and digital brokerage platforms are expected to grow 30-fold over the next 10 years.
This focus on digital transformation across supply chain and logistics comes at an opportune time, especially as the pandemic has accelerated the need for technology adoption. With new infrastructure investments on the horizon, shipping leaders should look to three specific areas of technology investment to keep up with market developments:
â Cloud-based technologies. At the start of the pandemic, many found themselves working from home without coming back to the office in sight. While some industries were able to make this transition seamlessly, logistics and supply chain managers faced huge hurdles as processes were cemented at physical sites. But those who made the switch to cloud-based transportation management software (TMS) platforms were able to move more easily to working from home and getting the job done with little to no notice from their customers and partners. . Cloud-based technologies provide flexibility that is now essential for a successful workflow.
â Artificial intelligence and machine learning. The trend of artificial intelligence (AI) and machine learning (ML) shows huge growth potential in the industry. Over the past year, we have also realized the crucial role of AI and ML in optimizing shipping processes as people demand groceries and supplies at a faster rate than never. Efficient and optimized logistics processes were essential, and AI and ML are making this happen at a faster rate. For example, the technology helps identify gaps in the LTL market, so those gaps can be exploited to create full truckload (FTL) shipments. In this way, more product is transported, carriers are allowed to travel even more efficiently, and shippers can capitalize on more goods than before.
â Listening to big data. We continue to see the power of data integrations across all kinds of industries, but supply chain and logistics have a lot to gain from prioritizing this technology. By using the data captured in typical business processes, shippers have the ability to better communicate with suppliers around the world and automate certain responsibilities in order to streamline processes and increase overall efficiency.
There are several other types of technology starting to pervade the industry, but if shippers can prioritize these three areas initially, they will be in a much better position to be successful in the years to come.
A technology-driven future
As economies around the world go global, we will continue to see growing demand for innovative players and services in the logistics and supply chain industry. Technology will be a critical part of these advancements, and with increased adoption of cloud, AI, ML and more, we’ll see gamers continue to thrive in a global world. We will not see the relational foundation of the industry fade away, but rather see it strengthened through more efficient and effective processes that will advance the industry as a whole. Those in a position to prioritize these technology integrations will find success in the years to come with the investments made now.