What next to expect

Supply chains and transport networks form the backbone of the economy. But many supply chains are not equipped to cope with the world we are entering.

 

The Logistics & Supply Chain market is facing future disruption, which is not surprising considering that for decades many players have operated low tech, were manpower intensive due to multiple data entry points, and have to deal with statutory requirements that are not standardised. All of this results in multiple touch points with multiple systems, and a manual handling processes might cause delays and unintended errors in the information flow.

 

 

HOW ARE ALL THESE IMPROVEMENTS IMPACTING THE SUPPLY CHAIN INDUSTRY?

 

• There is a need to compress time to market and therefore reaction time end to end for everyone in the supply chain
• Increasing pressure on costs and therefore wastages have to be targeted for elimination.
• Efficiencies have to be created in processes which have to be passed on to clients

 

Leading supply chain disruptors like Amazon and even Uber are using IOT, Big Data Analytics to create efficiencies in their processes to have inventory available for their customers based upon historic trends, bringing in innovations in supply chain to bring visibility, reducing costs & improving quality of service for their clients. Those supply chain companies who will innovate and compete are likely to last these disruptions.

At Geodis, we are constantly innovating our processes & systems to enhance service experience for our clients. We have created IT platforms like IRIS, an innovative platform to provide full visibility to our clients which allows them to manage exceptions & alerts, shipment booking features, customized tracking and shipment analytics.

 

 

PARTICULARLY IN THIS AREA, IT IS LEADING THE CHANGE IN THE WAY SUPPLY CHAINS WERE TRADITIONALLY OPERATED.

 

1) Data entry points are being minimised to ensure both higher manpower productivity as well as improved data accuracy.

2) The proliferation of smart phones and handheld devices applications is creating a bigger IoT network passing on real-time & accurate information on traffic delays, suggesting alternate
routings, tracking shipment and deliveries real-time and planning to overcome other gaps in the supply chain. This is already impacting how much and where companies hold inventories.

3) Ever-changing consumer behaviour and market complexity is increasing exponentially. However, with improved data quality and devices which are able to analyse big data collected from all sources, there are huge improvements in setting up efficient supply chains with better load planning, route planning, warehouse planning based on center of gravity a.k.a. heat mapping studies on customers & supplier points and efficient inventory planning based upon near real-time analysis of stock levels at multiple inventory points.

4) Technological advances with additive manufacturing systems (3 D printing) is already creating a dent in urgent spares market for Aviation/ Defense as also with many Modeling requirements across industries. It is only a matter of time before larger more complex commercial items are also started to be printed on demand rather than moved around, sometimes hand carried across continents.

5) Field trials for Drone deliveries have been experimented with for some time and are nearing commercial application (first legal delivery in the US happen in 2015). Whilst jury is out whether this would become a mass use product in the immediate future but it will impact outlying areas/ sub optimally serviced locations/ smaller urgent fulfilments thereby impacting super express deliveries.

6) Closer home, GST has made life a little more complex for all of us, at least for now. However, long-term impact is expected to reduce delays, reduce costs both through better asset utilisation as well as operational efficiencies.  This is also going to impact warehousing quality & efficiencies, reduced inventory due to warehouse consolidation and also less damages.

7) Finally, all these improvements in efficiency would also help us improve asset utilisation and therefore reduce our carbon footprint.

 

 

By: YUVRAJ SHARMA, National Sales Director India & Regional Field Sales Director APAC, GEODIS

 

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TransREporter focuses on providing its point of view on industry trends, the health of the industry and various other reports and analysis necessary for logistics professionals.