2 ways your supply chain benefits from transparency and democratization in bulk logistics
While the internet of things is taking over many industries, the global bulk logistics industry has been desperately lagging behind like a baby elephant unable to keep up with the pace of the herd.
Located far away from blockchain, electrification, and smart-everything, this baby elephant is now being discovered by innovative tech startups who are about to completely revamp and shake it up. Now wonder: the global bulk logistics industry is netting 1.5 US$ trillion per year but operates with mostly 20th-century ideas and technology. It was about time somebody stepped in and make it fit for the 21st century! And since global bulk logistics acts as a lifeline to many other industries, there are benefits to be had for everyone.
Here are 2 ways in which your supply chain can benefit from the democratization, disruption and transparency that technology brings.
1. Optimize your operations by being lean
Integrating the traditional 7 R’s of logistics in a single digital platform with real-time data and real-time access? Reducing cost while improving efficiency and visibility?
This is what the digital transformation in transportation and bulk logistics is all about.
Commerce is streamlined through intelligent automated tools and online applications, and supply chains are no longer restricted to what traditional vendors have to offer. Nor do they depend on a limited portfolio of customers.
In this new world, the playing field is level and whoever wants to buy or sell is welcome to join the party, with all the needed information (e.g. real-time pricing, availability and location) right at their fingertips.
It’s like transparency on steroids, something unheard of in this industry until only a few years ago.
These new systems enable a much more efficient operating model for all, as they do away with mundane admin tasks and multiple touchpoints for every operation.
Most importantly, they offer true marketplace transparency, ruled by the laws of supply and demand, unlike the legacy systems in which the big players basically controlled and divided.
It’s safe to say that this transformation in transportation and bulk logistics empowers your supply chain to take full control over the entire logistics process again.
From A to Z. The baby elephant is finally catching up!
But that’s not all. The digital transformation, or rather revolution, doesn’t stop there!
Technologies like Artificial intelligence (AI), robotics and autonomous driving are already knocking on the door of the industry and will be rolled out rather sooner than later. What we will see is a complete industry being turned upside down even more, driven by the necessity to change and carried on the shoulders of the new innovators of our time. Who knows what the industry will look like in 5 years from now ?!
All we know is that we are excited, and so should you!
2. Optimize and streamline Planning
Speaking of planning, it’s at the heart of every effective supply chain and what better way to do it than to make decisions based on real and actual data feeds from the marketplace?
The digital transformation offers just that and contrasts with the old system which uses models to predict or simulate market movements based on the past.
Just imagine how your business benefits if you can you can use fresh marketplace data to:
● Reduce overall operating costs
● Do better forecasting
● Accurately predict utilization of equipment
● Optimize “just in time” deliveries
These are just a few of the other things that the digital transformation in transportation and global bulk logistics helps to achieve. This focus on all real market data means better-informed decisions, which lead to leaner operations.
And leaner operations produce less waste, which by the way, also helps to lower your carbon footprint, another benefit.
So this, in a nutshell, are some of the benefits that the transparency and democratization in bulk logistics have to offer to you. Are you ready to join?
If you have any other examples of the benefits of digitization, we’d love to hear from you!
