A Digital Era is Changing the Supply Chain: What the Future Holds?
Tech innovations are vital nowadays. Every industry is adopting new technologies to improve their services, and logistics and supply chain companies are no exception. Over the years, technology has played an important role in this industry, giving companies more control over supply chains. FreightWaves states that, “Supply chain technology is on the rise. More tools are now available to provide businesses with greater control over supply chains, even in the face of disruptions caused by these black swan events.”
We spoke with experts in our company, and this is what they had to say:
Joel McGinley, our Managing Director, believes that the real impact of the digital era in freight is an increase in productivity, a decrease in mistakes, and an overall improvement in efficiency. Any time we’ve seen technologies come into this industry, we’ve seen an improvement in productivity. He says that when he was running DAT, a lot of people were concerned that DAT was going to put them out of business, and it only enhanced their business. Every time we’ve seen new technologies come in, whether it’s tracking and tracing, whether it’s a new TMSS, we’ve always seen an increase in productivity, an increase in profitability, and an expansion of efficiency. The real impact is seen in all three of those areas.
Vinicius De Araujo, Business Analyst at Hubtek, states that increasing technological innovations are making big waves across all sectors, and logistics and the supply chain may be one of the most impacted sectors. He says that supply chain is well known for its heavy use of manual processes and large amounts of data stored in different ways and in different places. That’s why this industry has perhaps the most to gain from implementing new technology and keeping up with its trends. For example, supply chain visibility. Supply chain visibility is no longer just a great thing for logistics companies to have. Now, we need to take another step forward, and that step forward is becoming real-time.
This real-time data is now, more than ever, in demand by customers and carriers, which means logistics and supply chain enterprises need to focus on implementing new technology that promotes real-time response. However, it’s not just new technology that’s shaping the future of logistics, it’s also emerging business models and new players, often driven by startups, as well as new systems incorporating elements of the shared economy.
Alejandro Muñoz, Growth Master at Hubtek, argues that our industry has faced several challenges when it comes to increased efficiency and the best use of resources to achieve the greatest profit on our investment. He believes this is where technology plays a big role, because we now need to complete more transactions within the same timeframe to keep businesses running, and the company that has a quicker response time will earn more business. However, the magic is not only in doing it faster, but more accurately. Therein lies the real impact of the digital era on the supply chain – finding the best recipe to get faster data processing with the highest level of accuracy and increasing profitability without affecting the service and customer relationships.
Based on our expert’s points of view, let us know what you think.
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