Technology is changing the way we live and work. As our world becomes more interconnected, so do the people in it. This means that our logistics needs are also becoming more interconnected. IoT development has created a new world order where every device is connected to every other, creating an ecosystem of data. Internet of Things development has brought a whole new set of possibilities and challenges for supply chain and logistics management.
With the massive uptick in capital markets and contract value, many business owners are increasingly concentrating on their supply chain. And while the majority of these businesses still depend on spreadsheets and notebooks, there is a plethora of possible uses for technology in the sector.
An efficient logistics operation is the backbone of any successful business, and technology is playing an increasingly important role in driving logistics forward. Here are five supply chain case studies that can empower firms to stay on track.
Predictive analytics and supply chain management
Businesses have spent decades focusing on cutting expenses and inventories. Because manufacturing disruptions were uncommon, supply chain resilience took a back place. As a result, many people were caught off guard by the recent crisis two years ago.
Companies must now restructure their supply chains and to do so, companies must consider several possibilities and quantify the implications on their business. This is where IoT-enabled smart supply chain solutions, like digital twins, are quite beneficial.
Digital twins is the virtual representations of actual items and processes.
Digital twins facilitates the simulation of adjustments to the supply chain. At every stage of a supply network, they: Analyze product flows, transit volumes, and expenses.
- Compile data from several systems-
- Correct data contradictions
- Create hypothetical situations with an interactive map. The supply chain network is modeled to demonstrate how external events or network changes may impact the whole supply chain.
They are able to mimic the disorder found in international supply chains, including issues with suppliers and transportation. The system can also forecast how a disruptive event may affect the supply chain and offer suggestions for mitigating its effects. Supply chain network optimization has helped corporations be better equipped to deal with impending shortages and can lower expenses.
Inventory Optimization and ML
Retailers frequently run the danger of running out of popular items while having an excess of less popular items on hand. In such a scenario, a store would continuously miss out on sales of a hot item, locking in money in the form of unsold inventory. Today’s risks make it increasingly harder to decide whether to spend more money on more expensive storage or buy more merchandise and store it.
This new age technologies help:
- Track inventories
- Determine the optimal stock levels.
- restock supplies in advance
- Evaluate external risks
For instance, a platform developed by Flieber for e-commerce businesses makes use of cutting-edge data analytics and machine learning to forecast sales and identify the appropriate quantity of inventory. Additionally, the system notifies retailers when to restock so that fresh goods may be brought in before they run out of stock.
With these IoT developments, businesses are able to store the right amount of strategic items and decrease surplus inventory, which impacts sales.
Fleet Management and Smart Routing
This was a major setback for independent operators and start-ups, who have less bargaining chip with shippers. Their clients are not eager to accept price hikes that match the surge in diesel prices, forcing truckers to cut corners on vehicle maintenance and other expenses.
Wise System’s smart routing solutions can assist trucks in lowering expenses and fuel usage. They employ artificial intelligence algorithms to solve the so-called traveling salesman problem or TSP. Its fundamental concept is to identify the best possible routes across various cities. This type of solution analyzes data such as local traffic, weather, and gate codes. This internet of things development offers a route with the shortest mileage and time spent in transit.
Logistics Automation and Cybersecurity
Larger corporations often have a robust security system. As a result, hackers frequently attempt to obtain access to critical data through their smaller providers. Businesses must safeguard their assets even if they are outside of the usual assault zone. Traditional solutions, on the other hand, can only monitor assets that are directly connected to the company’s IT infrastructure.
A third-party risk management system can aid in the analysis of externally facing connections. These systems, as opposed to conventional ones, concentrate on all the connected IT assets and evaluate their security.
Consequently, a business owner:
- Avoids expenses associated with data leakage
- Addresses reputational risks
- Avoids fines
Container Management and AI
Aside from fuel prices, the freight sector is dealing with another major issue, container scarcity.
It all began when the WHO proclaimed the COVID-19 pandemic and manufacturers shut down their operations. Because US businesses were unable to create enough items for export, transcontinental containers became stranded in North American ports. Shippers cut the number of boats at sea in response to declining demand. There is now a deficit of containers that is not going to be resolved very soon because manufacturing rebounded more quickly in other nations than in North America.
In contrast to manual operation management, technology can increase the efficiency of maritime transportation and freight control. For example, Portcast, a Singapore enterprise, established an ocean shipping system. It watches ships in real time and calculates the shortest routes between ports.
Portcast uses artificial intelligence to assess data such as ship positioning, speed, direction, ports, wind speed, and wave height. They also examine economic patterns, climatic patterns, and challenges such as the Suez Canal blockade. Furthermore, Portcast monitors more than 90% of worldwide ocean carrier traffic and 35% of air cargo.
All of this enables the system to:
- Forecast outages
- Identify the source
- Eliminating delays
Shippers may now better prepare their trucks and warehousing crews for the arrival of containers.
The idea of using big data for logistics is not a new one. However, it is still in its infancy and will only continue to grow as information technology becomes more advanced from year to year. This article has presented you with a rundown of the logistics areas that stand to benefit from big data, such as routing, capacity planning, inventory management and much more. While the lines between logistics and shipping are very blurred sometimes, it is clear that technology improvements in these fields have the potential to transform our everyday lives.
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