This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
As we seek to add value for shippers, our industry must continue to leverage technology to meet demands for speed, visibility, efficiency, and cost effectiveness from customers. In the years ahead, the ability to maximize the use of data to enhance supply chain management is critical to driving customer-focused innovations that result in real value.
Suppliers, manufacturers, and consumers have come to expect speed and transparency from their logistics providers. They want to know when goods or materials are picked up and shipped, the status of those shipments throughout the supply chain, and confirmation of their arrival — all on demand and in real time. They also demand cybersecurity that ensures that information is safe and private.
Supply chain managers can leverage this transparency and incorporate predictive analytics to make the process of moving cargo and packages timelier, more efficient, and more cost-effective so the flow of goods from manufacturing to distribution centers and then the final mile to destinations meets the expectations of our digital age.
We’re already seeing GPS and other devices installed on vessels, truck fleet vehicles, shipping containers, and cargo to provide end-to-end visibility that can be shared with customers. This technology is also helping us as a logistics provider be more efficient, cost-effective, and timely. For example, monitoring devices on chassis can help us manage equipment so it’s ready at optimum times. Remote management of refrigerated containers means we can adapt to changing needs during a sailing to save time with changeover at destination.
Now, we’re moving into data science and predictive analytics to anticipate the pace and volume of cargo movements, equipment utilization, and more. Generating the data in transportation management software, we can process of hundreds of thousands of transactions digitally and leverage the information for our customers’ benefit. The effective use of technology is one of the ways we are adding value to our customers’ supply chains.