The world around us is evolving at high speeds, and the speed of change is going to increase more in next years. Digital revolution has permeated in the society and has hit on companies of all industries. The companies should change and adapt faster in order not to be outdone. This is the mantra repeated in the executive’s directions among the main companies.
Supply chain industry has been sustained by processes very established and hesitant to change. However, the current situation is different and this is pushing a new digital reality. New consumer habits and technology, both, are transforming the way living, working, thinking and knowing the logistic operations. Last miles delivery or autonomous transport vehicles are realities that are forcing companies to invest in innovation.
According to the last report of Deloitte about the sector, only 38 percent of executives say they are extremely or very confident that their supply chain organization has the competencies it needs nowadays.
Source: SCM World
The increasing complexity of logistic processes and the new technology capacities have created breeding ground emerging innovative solutions which help organizations to manage this complexity and improving efficiency, supported with the large volume of data daily generated. The companies can optimize their processes in multiples areas such as supply chain, inventory control, resources management, customer experience, etc. Accurate and real-time information allows providing forecast more reliable that helps to improve the management of decision-making, planning and operations scheduling. The advances are getting that companies strive to improve in these areas. In this sense, they are being more productive, more competitive and more profitable due to the technology as it´s playing a crucial role in this transformation.
All these changes are forcing Logistic companies to become a technology company. Between the eight relevant technology trends in the industry for next years are inventory and distribution network optimization, using telemetry, data stored and computation in cloud, robotic and automation, predictive analytics, mobility technology, and autonomous vehicles and drones (see link). In all of them, IoT and artificial intelligence play an important role in getting business goals. Massive use of data increase the need to apply a smarter solution to business, for handling all complexity, and this is where the artificial intelligence can help us.
Source: DHL Trend Research
One of the greatest challenges faced by the logistic market is how to make the deliveries fulfill with customer satisfaction standards, and the same time meeting with expected profitability. Currently, customer is demanding more and more their delivery on the same day even on the same hour, wish to know their status and knowing exactly when it is going to come. This is a great challenge can be resolved with advanced analytics solutions. With which it is possible to expedite the delivery plan using all available data of logistic operations. In that way, it is easy to manage deliveries optimally: taking into account the fleet availability, fuel consumption, driver’s performance, etc.
And we should do us the idea soon will see autonomous trucks and drone for delivering our orders. Is well known ongoing initiatives of companies like Uber, DHL, or Amazon.
Source: DHL pilot in several German cities, published by Mckinsey
Leading companies of industry are using big data, machine learning, predictive analytics, operational research and business rules for making better decisions, with more strategic and cooperative focus which until now. Developing digital capacities provide a competitive advantage, necessary for surviving and prospering in the world today. Is your company ready to address this challenge?
Manuel del Barrio de Pablos. Co-Funder & Partner at Decide Soluciones. If you would like to read about Advanced Analytics, Artificial Intelligence, Big Data and IoT, visit our blog in www.decidesoluciones.es or follow me on linkedin and twitter: @delbarriomanuel.