Technology Changing the Logistical Industry

Technology Changing the Logistical Industry
In today’s world technology plays a major role in everyday life, from wearable devices,
robotic machines, drones to cloud computing, hence it is important that one must stay
abreast and updated with all the latest that technology can offer that not only simplifies our
lives, but also makes us deliver better performance and even stay healthy.
Even in the world of logistics, technology has started playing a significant role in
transforming how things are done to cater to the new age that completely depends and
thrives on technology.
Logistics sector is becoming more and more popular in recent times as people have
discovered that every business runs on logistical background, which not only gets things
done quicker than normal, but also in a much more efficient way that increases profitability
and save a whole lot of time spent on unnecessary activates. There are more new
generation graduates that are seeking to start their career in the field of logistics today than
their counterparts a few years ago, this is because of the job opportunities that are offered
by the logistics industry and even during economic struggle, logistics industry has grown
offering jobs across its various sectors.

Technology is a means to enhance business competitiveness and performance, both
customer and business expect goods to get delivered quicker, having more flexibility and at
the lowest possible price. With new technologies emerging, they are creating strategic
opportunities for organizations to build competitive advantages in the areas of management
including logistics and supply chain. Manufacturing is becoming more and more customized
to suit to the ever-increasing demand from the customer for customized products that fit
into their budget and lifestyle. The degree of success for an organization to meet these
specific demands of the customer depends on the selection of the right technology for the
application, availability of proper organizational infrastructure, culture and management
policies. These specific and always changing demand from the customer is increasing the
pressure it puts on logistics is tremendous. In logistics, information, communication and
automation technologies has substantially increased speed of identification, data gathering,
processing, analysis and transmission, with high level of accuracy and reliability.
Automation is the first step forward in implementing technology in the simplest form which
are driven by software that improves operational efficiencies in machines with minimal
human intervention. Automation is applied in the areas of manufacturing, transportation,
facility operations and many others. In a manufacturing factory automation takes care of
operations such as assembly, inspection, processing and even material handling, thereby
increasing the output quality and quantity by reducing lead time which is a major factor that
causes delay in getting the product out of the factory for sales and distribution. Automation
not only increases production output but also aids to mitigate labour/ skill shortages,
eliminate manual tasks, improve product quality and reduce lead time. Rotterdam port in
Holland is a classic example of automation and is often called “one of the most
technologically advanced port in the world” The port’s fully-automated container terminals

use computer- programmed stacking cranes to unload cargo in ways that increase
production, improve handling performance and reduce labour costs.
There has been a sea of change with respect to technological improvements that has been
transforming the transportation industry. I remember way back in the early 2000’s one of
my friend who works for a transportation company had an incident. One of his truck went
missing with a cargo worth 1.5 crore. The truck left the warehouse on Monday and was
bound to the delivery location, until Tuesday morning the truck driver was in touch with the
office through his mobile by constantly updating the office about his current location,
however by that same afternoon, the driver’s mobile went dead and the office had no
communication or whereabouts. It took my friends office the whole of Wednesday to figure
out what actually happened to the driver and their truck with 1.5 crore worth of goods.
Today these kinds of mishaps are easily mitigated by simply installing a GPS device and an IP
camera in the truck. The GPS device gives real time location of the truck and if you have a
good software it also gives you details such as the speed of the truck at various stages of the
journey, time lost when the truck was parked either for the driver to have his meal or for
any other reason plus you can see if the truck followed the prescribed route that was
planned for it or it deviated from the actual route resulting in higher fuel consumption and
increased lead time. With the IP camera inside the truck or in the drivers’ cabin can give you
a full-time view of what is happening in the cabin in addition to you having a conversation
with the driver if required. Technology at your fingertips can help give you access to a whole
lot of information which otherwise would be available on real-time basis, with these kinds
of technological advancement help productivity and increase profitability to a greater extent
giving companies the necessary competitive advantage in the market.
With the advent of block chain technology privacy bottle necks staring at the supply chain
industry had been reduced to a large extent. Block chain technology is gaining popularity in
the supply chain domain by reducing errors in documentation by encrypting them and
taking them online thereby preventing unauthorized usage of critical documents by
miscreants. Block chain technology gives utmost transparency and unprecedented privacy in
terms of all the transactions that takes place in a supply chain process. Smart contracts are
one such example of block chain enabled transaction, shipping bills are another example.
Block chain technology allows customers to track their products and trace the entire life
cycle of their product manufacturing. Banks, trade finance personnel can easily verify and
check any transactions in the supply chain. Information stored in blockchain is unalterable,
it cannot be changed by any third party, which makes this technology more secure than any
existing solution. Implementing block chain technology reduces physical paper work, allows
organizations to save more than millions of dollars. As more and more logistical companies
are turning towards the implementation of block chain technology, there is going to be a
collective change in the way a common man would look at logistics and the improved
services a customer would benefit from these technological advancements.

Leave a Reply

Your email address will not be published. Required fields are marked *