March 20168 logisticstechoutlook.comSome people may not think of the logistics industry as cutting edge or technology- savvy. And there are good reasons for that. Ask anyone the first thing they think about when talking about logistics and transportation, and they would probably answer trucks and truck drivers. While this image still holds some validity, it hides a much more impressive reality. The trucks you see on the roads conceal marvels of the latest and greatest technology. Sensors, computers, handheld devices and mobile apps are all inseparable parts of the logistics operations these days. Some of the coolest innovations near the top of the hype cycle today were part of the logistics industry for a long time. Uber-like concepts were in use before Uber even existed. Internet of Things (IoT) was a part of daily operations at a number of logistics companies for many years. Big Data was a reality long before the term became mainstream.Business Needs & Technology ChallengesAs the saying goes, "Necessity is the mother of invention." Despite the unglamorous image to some, the logistics industry requires a tremendous amount of technology to operate. Customers need to be able to place an order, define specific parameters of their shipment, get an accurate quote, track the shipment, and determine whether the delivery was successful. Logistics companies need to understand the customer demand, match it with available capacity, determine the most efficient delivery route, track the freight, communicate with drivers and provide the ability for customers to know where their shipments are at any point of time. Truck drivers need to be able to communicate with the company, accept load offers, obtain recommended routes, provide acknowledgements of pickup and delivery, send in all the necessary paperwork and get paid for the work performed. And this doesn't even touch the air, rail or ocean transportation modes, which have their own sets of requirements.The challenges in the logistics industry are incredibly complex. Technological solutions are not only needed to operate efficiently, they are necessary to survive. To keep up with the competition and position themselves for success, logistics companies should invest in a wide range of technologies. The core systems need to integrate with a variety of providers, from EDI and web services to external data feeds and route mapping. Each truck needs tracking equipment to transmit its location. Some trucks require temperature-control sensors as well. These IoT devices generate a huge amount of data and therefore require Big Data solutions to properly consume and interpret it.Besides interpreting a large amount of data from the equipment in the field, logistics companies also generate a significant volume of data from their everyday operations. Quotes, booked orders, amount of daily phone calls, revenues, profitability figures and many other data points are necessary to understand how the business is operating and what needs to be changed to improve performance. As you can imagine, Business Intelligence and Analytics solutions are critical. Data warehousing, reporting and dashboard tools are necessary to provide insight into business operations and help leaders make informed decisions.Before mobile applications became mainstream, the logistics industry already had heavily invested into them. A variety of problems had to be solved. Drivers needed to be Technology Convergence in the Logistics IndustryBy Leo Shuster, Director, IT, Panther Premium LogisticsOpinionIn MyLeo Shuster
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