How is Technology Driving Changes in the Logistics and Supply Chain Industry?
- 8th September 2020
- Innovation and Technology
Improvements in technology have pushed the boundaries of practically every field, including logistics and supply chain management. If you’re accustomed to getting things delivered at your house in just a few clicks, you can thank the technological advancements in the global supply chain industry. Read on to learn more about the impact of technology on logistics.
Introduction of social media
Just like with other industries, the power of social media is driving changes in the logistics industry too. Social platforms have become one of the most effective ways for companies in this field to communicate with their customers. Social media also increases their engagement with customers via advertising campaigns and industry news.
A recent survey by Google and Temasek shows that more than $37 billion has entered the internet economy of South East Asia over the last four years. The majority of this funding was used by e-commerce start-ups in the region.
Logistics companies are switching their focus from acquiring you as a customer, to engaging with you in the hope that purchases will follow. As a result of this strategy, you will find more enticing content on the social platforms of most logistics and e-commerce companies.
Integration of multiple communications platforms
With the internet becoming second nature for most of us, we’ve grown used to high-speed communication channels. As a result, our expectations as customers from the logistics industry have grown.
Therefore, supply chain management providers have had to become more transparent and communicative to engage with more consumers. Today, numerous communication platforms allow smart logistics companies to interact with stakeholders at all times.
An excellent example of the integration of multiple communication platforms can be seen in the CEVA Logistics’ Mobility Suite in Singapore. This multi-platform smartphone application can help logistics providers communicate with different government agencies and delivery providers to optimize the transportation of goods.
Integration of IoT and RFID
A common problem in the logistics industry is the lack of real-time tracking of sensitive goods during their movement. This often leads to a delay in order fulfillment or loss of inventory.
Thankfully, new logistics technologies like Radio Frequency Identification Sensors (RFID) and the Internet of Things (IoT) allow companies to address this issue by tracking their goods in real-time.
The RFID can connect with sensory networks installed in airports and seaports to detect the arrival of motion-sensitive goods upon entry. IoT can play a crucial role in internet-connected warehouses to keep track of shipments and reduce the burden on ground handlers.
A recent survey by Capgemini and GT Nexus found that 70% of retail companies in Singapore have already started integrating IoT in their supply chain and logistics divisions.
What kind of technology can you expect in the future?
The technological movement in the supply chain industry is far from over. There are many exciting developments that can have immense potential in the logistics industry. Below, we’ve listed a few of them.
- Robotics: Although robotics is still a futuristic technology, it has many exciting applications in the logistics field, such as autonomous forklifts and customer service robots. Amazon recently revealed that implementing robots can reduce warehouse operation costs by almost 20%. The use of artificial intelligence in logistics can also contribute to robotic applications in the field.
- Drone deliveries: Imagine the hassle-free delivery of your goods by drones, meaning you don’t have to interact with a delivery guy at all. Once deemed an impossible idea, drone deliveries may soon become an integral part of the supply chain world. In fact, The Straits Times reported Singapore’s first drone delivery service on April 19, 2020, however, you might have to wait some more for this method to become mainstream.
- 3D printing: This produces physical objects from digital models by adding thin layers of material in succession. The process cuts down material waste and improves production efficiency. 3D printing can have numerous possibilities in the supply chain industry where it can boost on-demand production and makes it easier to produce supply chain tools like forklifts and drones in bulk.
These applications are just a handful of the many possibilities for technology in logistics. Pursuing a career in this field can provide you with a front seat view of the exciting future of the logistics industry and a supply chain career can also be financially and professionally rewarding.
If you’re keen to learn more about the role of technology in logistics, the London School of Business and Finance (LSBF) in Singapore offers a Master’s in Logistics and Supply Chain Management that can help you embark upon a successful career in this field. This advanced degree is designed and awarded by the University of Greenwich (UoG), a recognized London-based institution.