We have known for some time that the supply chain is fragile. The pressure for extremely lean last-mile efficiency created a system that did not have the flexibility to bend with changes in the marketplace. The challenges brought on by the pandemic and the corresponding recovery shone a light on this fragility. These last few months made it clear that the supply chain needs to evolve into a stronger, more agile and adaptable system that can respond quickly to challenges and implement solutions, utilizing machine learning (AI) to analyze data when conventional programing has its limits. Also, LPWAN/5G technology with live-tracking positioning will be a key factor that Dachser will focus on. Technology for environmental protection will be more and more important, as well, and is in the center of our developments.
Technology that provides transparency and enhanced communication among all supply chain stakeholders has been a key driver of our business for decades. We at Dachser believe strongly in the value of technology as it relates to enhanced efficiency and cost-effectiveness, but during this crisis, these benefits have been magnified beyond our expectations. For some customers, utilizing this solution-driven technology made the difference between staying in business and closing their doors. I believe that blockchain technology will drive many new innovations and apps that will especially support transparency and create the entry to new business models in the near future.
Looking at the supply chain as a whole, capacity issues must be addressed, and technology will play a critical role in ensuring we do not relive the last few months. Capacity crunches of warehouse space, shortages of truckers, chassis and container dislocations, and a general lack of communication and collaboration throughout the supply chain created confusion and congestion at the ports and brought the supply chain to a halt.
As an industry, although we may be competitors, we need to move collectively in the direction of technologies that provide transparency, inventory and warehouse management, AI-driven forecasting, equipment and fleet management, and enhanced communication among all parties, which must become the norm.