Gone are days of static analysis and planning. Deliveries are made not within charts and tables. They are made live, so should their scheduling and routing. All live. You know everything one glance, you can do everything in one click.
Elastic logistics is the new and evolved version of ‘lean supply chain movement’. As technology has caught up with logistics, latest delivery schedule and route planning help companies are on top of all market demand fluctuations and keep their products on shelves at all times or reach the consumer’s door within a day or two.
With technology, innovation is always around the corner. Some more than others. We have all seen the hikes in interest and following for tech innovations to have them fizzle out. We are at the start of such an upswing. Take a step further back, and you will get to the topic, Blockchain.
The World Bank has said logistical costs swallow up around a quarter of Indonesia’s gross domestic product, citing bottlenecks in supply chains, long dwelling times in ports and lengthy trade clearances. Indonesia’s e-commerce sales are set to rise from 3 percent of retail activity now to 19 percent by 2027, Morgan Stanley estimates.
According to the American Trucking Associations, freight tonnage hauled by trucks would increase by 27% (between 2016 and 2027). With global retail sales to touch $27 trillion by 2020, it just adds to the problems of high volume and restricted resources. Most of these companies would win or lose based on how they optimize their last mile deliveries.
Technology has enabled us to record, plan, allocate, dispatch, track, validate, and analyze all freight movement from a single dashboard with clear and real-time actionable insights in an easy-to-understand format. This leads to an agile, reactive, and dynamic setup for a company’s transportation management system.
Under-utilized capacity carries a clear cost which adds to the cost-per-unit carried by the resource. It isn’t feasible to run under-utilized resources to fulfill the ever-increasing demand created due to expectations of on-demand, same, or next day deliveries. On-demand and preferred slot delivery (or pick-up) is made more efficient with the use of an auto-allocation engine.
Traditional trade occupies close to 90% in key developing markets. By leveraging cloud-based technology, last mile delivery can be optimized for such distribution networks, bringing in organized patterns within the industry and generate more value for all the stakeholders involved namely the retailers, the distributors, the manufacturers, and the end-customers.
Polar Vortex can disrupt logistics movement pushing up freight rates due to a shortage of trucks and drivers. Shipments may be delayed either due to rerouting away from snow-blocked highways or, being detained due to traffic bottlenecks. Multi-modal transport via railroads and ports are also affected.
We saw last mile delivery being used as the key input in all omnichannel strategies. We saw localization in distribution strategies centered around making last mile delivery more effective. We also saw machine learning being implemented successfully in logistics and field workforce planning. These trends would be the greatest influencers in 2018 for logistics and field workforce management.