Disruptive Technologies have the potential to quickly redefine supply chain rules of engagement. Many of these advances are poised to create new pathways for supply chain practitioners.
Inbound Logistics' July 2015 3PL Perspectives
market research report had asked more than 250 third-party logistics (3PL)
providers to share their opinion on the disruptive innovations that will have
the greatest impact on logistics and supply chain management in the future.
3PL providers overwhelmingly cite the Internet of
Things (IoT) (42 percent) and Driverless vehicles (41 percent) as the two
innovations most likely to impact the supply chain. With regard to IoT
progressions, semiconductor manufacturers and suppliers are already looking to
lock up key precious metal resources in advance of growth expectations. While Amazon continues to generate buzz about its
drone delivery program, only 25 percent of 3PL respondents identify this as a
major disruptive force in the supply chain. More surprising, 24 percent of respondents
cite 3D printing as having a similar impact—equal to RFID.
Let us look at these 5 disruptive technologies:
1 IoT
Internet of Things (IoT) The Internet of Things (IoT) is the network of physical objects—devices, vehicles, buildings and other items—embedded with electronics, software, sensors, and network connectivity that enables these objects to collect and exchange data.
Internet of Things (IoT) The Internet of Things (IoT) is the network of physical objects—devices, vehicles, buildings and other items—embedded with electronics, software, sensors, and network connectivity that enables these objects to collect and exchange data.
Research
firm Gartner recently released a write-up highlighting what many supply chain
professionals have been weighing for some time: the IoT trend is going to impact
businesses, and in particular, it will disrupt the way we think about
logistics. In the piece, Gartner says a thirty-fold increase in
Internet-connected physical devices by the year 2020 will “significantly alter
how the supply chain operates.” Specifically, it notes the impact will relate
to how supply chain leaders access information, among other things.
2 Driverless vehicles - This seems like science fiction. However technology giants and major auto makers like Daimler Volvo, Scania are testing their proto types of this technology and also proving that this is the way forward.
Daimler recently demonstrated a prototype truck which drove autonomously on an autobahn in Germany. The truck successfully navigated a junction in real driving conditions in the demonstration showing us just how real the technology is. Daimler demonstrated the truck as part of their ‘Future Truck 2025’ strategy when trucks will be equipped with their ‘highway pilot’ assistance system, allowing them to navigate successfully at speeds of up to 85kph.
The introduction of driverless trucks could be the biggest change the road haulage industry will ever see. The driving forces behind driverless trucks are .
Costs - 45% of a haualage cost is attributed to the driver. Eventually removing the driver , will have a hige impact on haulage costs, profits and margins.
Driver Shortage - World over, people are less willing to commit to a career as a HGV driver owing to poor pay, long hours away from home, poor image of the industry & working conditions.
The technology. There have been major technological developments in terms of assisting the driver. Daimler’s ‘proximity control assist’ will adapt the speed of the vehicle depending on the traffic through an integral cruise control and braking system. 3D maps already exist for a ‘predictive powertrain control’ system and telematics products for vehicle and transport management have already been rolled out.
Daimler recently demonstrated a prototype truck which drove autonomously on an autobahn in Germany. The truck successfully navigated a junction in real driving conditions in the demonstration showing us just how real the technology is. Daimler demonstrated the truck as part of their ‘Future Truck 2025’ strategy when trucks will be equipped with their ‘highway pilot’ assistance system, allowing them to navigate successfully at speeds of up to 85kph.
The introduction of driverless trucks could be the biggest change the road haulage industry will ever see. The driving forces behind driverless trucks are .
Costs - 45% of a haualage cost is attributed to the driver. Eventually removing the driver , will have a hige impact on haulage costs, profits and margins.
Driver Shortage - World over, people are less willing to commit to a career as a HGV driver owing to poor pay, long hours away from home, poor image of the industry & working conditions.
The technology. There have been major technological developments in terms of assisting the driver. Daimler’s ‘proximity control assist’ will adapt the speed of the vehicle depending on the traffic through an integral cruise control and braking system. 3D maps already exist for a ‘predictive powertrain control’ system and telematics products for vehicle and transport management have already been rolled out.
3 CLOUD COMPUTING
Cloud Computing, also on-demand computing, is a kind of Internet-based computing that provides shared processing resources and data to computers and other devices on demand.
Cloud Computing, also on-demand computing, is a kind of Internet-based computing that provides shared processing resources and data to computers and other devices on demand.
4 DELIVERY DRONES
Delivery drones have several applications in shipping and delivery of food parcels medicines. Please refer my post for more info. http://shippingscmlogistics.blogspot.in/2016/04/path-breaking-usage-of-delivery-drones.html
5 RFID
Radio-frequency identification (RFID) has been identified as the next major step change in logistics. Smart companies are striving to reduce costs, improve service, and increase return on investment throughout the supply chain. Automation-based solutions can play a crucial role in meeting those goals, and many organizations consider radio-frequency identification (RFID) technology a major force in transforming global supply chain automation and visibility.
RFID increases equipment, inventory, and business process visibility. It also increases efficiency by optimizing business processes and automating asset and inventory management. The technology also streamlines data-capture procedures and increases accuracy by eliminating error-prone manual processes, and helps reduce labor costs. It provides real-time, up-to-date information across the entire supply chain.
RFID
solutions can help lower operating costs, increase distribution center
throughput, maximize on-time deliveries, and improve customer service and
satisfaction. Automated
systems have helped many companies optimize asset and inventory management in
internal or closed-loop solutions in which RFID tracks assets, such as
vehicles, equipment, and returnable transport items, which stay within the
company. Here are two examples:
An
international rail company operates intermodal terminals where shipping
containers are moved between rail lines and truck chassis. Because private
truckers use the equipment on a per-diem basis, the company needs 100-percent
accuracy to ensure 100-percent revenue capture. A closed-loop RFID tracking
system cut cycle times almost in half.
In
a large production facility, eight different departments were requesting daily
trailer moves. Trailer location, re-handling, and multiple moves wasted
significant resources. The company installed a complete RFID system with fixed
readers at gates and handheld readers for faster, more accurate automated yard
management, cutting total costs by six percent.
RFID is evolving in many intriguing directions. Companies are increasingly interested in using active RFID tags as sensors to ensure food safety by monitoring temperatures in different areas on refrigerated trailers. When an area gets too warm, the tag automatically notifies the driver and master control so they can remedy the situation. RFID sensors also help ensure traceability in the event of a recall.
Moving Forward ........ Other
advanced transportation uses include placing RFID tags inside gas tanks to
automatically record the amount of fuel dispensed and charge the transaction to
the system, eliminating the need for drivers to carry credit cards or cash. In
addition, RFID tags and readers can help lower costs and reduce CO2 emissions
by helping to optimize routing and reduce the number of costly re-deliveries.
To summarize - All the above mentioned disruptive technologies will play an important role in helping shippers and logistics service providers & also in redefining the global supply chain.
Please do share your views experiences in comments
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The author is a Shipping & logistics professional and can be reached on
The author is a Shipping & logistics professional and can be reached on
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