Even at that early stage, companies must evaluate the potential impact of new business opportunities on their existing operations. Does your company already have the technological solutions in place to make this assessment?
In the corporate world, we are accustomed to hearing that smart logistics supported by advanced technology solutions should:
√ Reduce the number of "empty miles" driven by truckers.
√ Lower the costs of repositioning empty containers—which constitutes one of the industry's major pain points.
√ Shorten delivery times.
√ Improve agility and flexibility while reducing inventory stock levels.
However, to dissect the true contribution of technological services to logistics, it is helpful to start by clarifying some foundational definitions.
Technological Solutions to Optimize Logistics
Logistics is a network of combined resources, methods, and infrastructures designed to ensure the storage, transportation, and delivery of goods and services. The terms "logistics" and "supply chain" are frequently used interchangeably, yet they refer to two distinct aspects of the process:
√ Logistics refers to internal operations within a company, including purchasing, materials handling, packaging, shipping, and transporting goods to distributors.
√ Supply chain, on the other hand, encompasses a broader network of organizations working collaboratively to deliver products to consumers, including vendors, carriers, warehouses, call centers, and more.
At the core of logistics itself, technology keeps information up to date regarding customer requirements, pickup and delivery points, permitted time windows at each location, and any deviations from the initial agreement. It also enables precise end-to-end tracking.
Furthermore, technological services bolster corporate logistics by factoring in variables such as vehicle type, weather conditions, and road networks. These factors—along with others like bridge clearance heights that affect truck or train transit, or regulatory measures enforced by transport control authorities—can significantly impact a company's logistics circuit. For instance, in countries like the United States, companies must comply with regulations established by the Department of Transportation (DOT), which limit the number of continuous hours a driver can operate a commercial truck. Such measures directly impact planning and act as critical constraints to manage.
Technological Services for Smart Logistics
To remain competitive, businesses need real-time visibility into the progress of logistics operations, supported by a robust alert system to make timely decisions without compromising customer expectations. Achieving this requires technology that facilitates capabilities such as:
- Generating alerts for road closures.
- Generating alerts for deviations from pre-established routes.
- Reusing an empty container (for a new movement) sourced from a container depot or an immediately preceding transit leg.
Additionally, systems must ingest data from diverse sources to enable effective tracking and automated alerting:
- Receiving data via Electronic Data Interchange (EDI):
- Container tracking details.
- Train or vessel departure and arrival information.
- Integrating real-time telemetry from container-mounted GPS devices.
- Integrating location data from drivers' GPS units.
- Establishing geofences to automatically log arrivals and departures at warehouses, ports, or depots.
The Human Factor
Logistics is an industry that has been relatively recently revolutionized by the explosive growth of e-commerce. The expansion of online channels required companies to integrate inventory management and warehousing with their e-commerce portals to meet personalized customer demands. Today, the logistics sector is being transformed by powerful trends, including process automation, collaborative robots (cobots) in fulfillment centers, wearables and augmented reality in warehouses and depots, IoT sensors for cargo and fleet tracking, and the emergence of drones and autonomous vehicles.
However, discussing technological services or applied technology in logistics does not imply that the human factor is obsolete. Logistics must incorporate human judgment and adapt to situations that automated systems cannot foresee. In such contexts, technology provides users with the tools to react quickly and efficiently to unforeseen events requiring replanning, without breaking commitments to customers—always aiming to minimize the impact on costs and profit margins. Examples include:
- Floods leading to road closures.
- Destination facilities temporarily closing intake for incoming containers.
- Delivery points closed due to highway congestion.
Logistics is a precision activity operating on razor-thin margins, where efficiency must be maximized and room for error eliminated. It is now well-established that technology solutions have immense value to deliver in achieving this goal.