How technology can support the changing & challenging dynamics for logistics.

Six years ago, one in ten packages ordered online arrived late in the UK at Christmas. That was a big worry for retailers and branded producers, but also a nightmare for the logistics operators who transport and deliver them.

In the present day, suddenly with a lack of lorry drivers, UK petrol/diesel stations are closing. It is estimated that the UK is 100k HGV drivers short (Source: BBC). This is a global problem made worse by the coronavirus pandemic. Before this news hit, John Lewis & Waitrose started looking to recruit more than 7000 people in temporary roles for Christmas, as it expects huge demand. The roles include delivery drivers and warehouse workers. It’s also clear that Brexit, although rarely in the news anymore, is continuing to affect the ability of firms importing & exporting.

The global logistics sector is more challenged than ever before, as customer demand and expectation remain exceptionally high. With the ability to order goods and receive them the next day, or even within hours, retailers require logistics partners to operate with fast and faultless delivery, at lowest cost encouraging brand loyalty, helping to drive up revenue. An optimised supply chain & logistics operation becomes paramount. It is very clear to be successful now and, in the future, companies need to design their operations around their customers.

How can integrated technology help?

Those organisations utilising advanced technology integrated within their logistics module to drive operations and ensure optimal deliverability are likely to see highest growth.

There are more and more examples of this fundamental shift in use of technology right across the logistics industry. See how container logistics organisations are transforming from legacy data systems: TradeLens,?a cross-industry collaboration between IBM and Maersk is an innovative open shipping platform that has utilised?blockchain?technology to modernise and digitise the world’s supply chains. Essentially, TradeLens empowers trading partners to share their supply chain data securely. This then gives all parties a more cohesive view of essential information like transactions, while still protecting the privacy and confidentiality of those involved.

Blockchain in Transport Alliance?(BiTA) is the leading global organization supporting the development of blockchain and blockchain standards within the supply chain. Patrick Duffy, President of BiTA believes that blockchain will eventually be a background system for transportation management systems (TMS) and other solutions, meaning fleets and shippers, regardless of size, will not need to have blockchain experts on staff. With a number of industry heavyweights testing blockchain technology, it won’t be long before these become mainstream solutions.

Artificial Intelligence (AI) can be integrated across supply chain operations to manage peaks and troughs, this has become significantly more important during the pandemic. By predicting and managing the fluctuating demand it minimises additional operational cost. You can read more about AI in Logistics: DHL & IBM - AI in Logistics

In fact, IBM is pushing further in AI with autonomous shipping. The maritime research vessel?Mayflower Autonomous Ship?is a first-of its-kind autonomous ship — and IBM technology played a central role in bringing it to life.

The Port of Rotterdam is committed to digitization in order to make the port, and the supply chain, more efficient. Through use of IBM’s IoT, AI & digital twin technology the port is transforming itself; committed to becoming the first digital port by 2030, and the smartest port in the world.

An area which continues to become increasingly important is security. The Transportation industry has become a priority target for cybercriminals and supply chain security is critical for business, customer support and IT organizations to work closely together on execution. It is therefore important to be to be able visualize the potential different threats, intelligently uncover, and seamlessly stop the threats.

Sustainability is also high on the agenda for all logistics firms with the?World Economic Forum?reported that nearly half of European citizens—and 3 in 4 Chinese citizens—consider climate change a major threat to society. That was before the pandemic! The unprecedented disruption COVID-19 caused may have pushed consumers past a tipping point. To understand how the events of the last year impacted public perception of sustainability and social responsibility, the IBM Institute for Business Value (IBV) surveyed more than 14,000 adults from 9 countries (Brazil, Canada, China, Germany, India, Mexico, Spain, United Kingdom, and United States) in March. The research revealed that the pandemic significantly shifted people’s perspectives on environmental sustainability. A full 93% of global respondents say COVID-19 affected their view.

Technology can clearly help companies reduce their impact on the planet; read the full report to learn how next-gen digital technology, better data governance, and the right information architecture can accelerate collaborative solutions and innovations for environmental sustainability.

Whilst the industry is facing challenges, customer expectation has never been higher. In some cities it is possible to get delivery in one hour, therefore, this heightened customer expectation means all logistics organisations need to utilise technology to avoid bottlenecks and delays.

Although we are some way off from thinking about how and when our Christmas presents will be delivered, with the current challenges of fuel, food supplies and delivery driver shortages, even Governments around the world are saying there is no magic wand to solve supply chain issues.

Alisdair Wright

IBM Global Industry Leader Travel & Transport, EMEA