Transportation is evolving rapidly due to data and analytics-driven supply chain technology.
FREMONT, CA: E-commerce's rise continues to drive higher expectations of acceleration, endurance, and visibility. Transportation and warehousing providers have been encouraged to rapidly evolve to keep pace with increasingly high demands from manufacturers, retailers, and consumers at the service level. Supply chain technology is allowing this evolution, powered by information and analytics.
Ensuring Quality and Consistency
In the past few years, technology has propelled the industry into a whole new world of supply chain visibility beyond simple track-and-trace data. Now, as well as tracking their packages through transportation, clients can obtain text or email alerts along with the manner. The same information may show that delivery is within a mile of its location, enabling facilities executives to plan and remove surprises.
Beyond on-time deliveries, this greater visibility has implications. Ultimately, this data will lead companies to be able to carry less inventory because they will know with greater certainty where and exactly when their products are needed. Over time, this could result in significant cost savings.
Enabling Productivity and Efficiency
Fleet management systems also play a significant role in increasing the efficiency of transport. Systems communicate with vehicles continuously, collecting data on how long an automobile is on the road, in which it is supposed to head, and which route is the most efficient. Such systems reduce idle driver time, streamline fuel efficiency, increase safety, and reduce paperwork while also giving the warehouse greater flexibility and responses to unplanned events in real-time.
Digital freight marketplaces also allow organizations to think beyond today's shipment by making the trucking industry more transparent. All of these ideas can assist drive down expenses of operation without sacrificing service.
Saving the Roads
Finally, the information will coordinate with other techniques to play a part in one of the most exciting transport innovations: platooning. It connects three or four trucks on long interstate highways for trips. For the lead vehicle, a driver is required, and the remaining trucks follow a short distance away on a digital leash. The lead car regulates all vehicles' velocity, direction, and braking, responding with almost zero reaction time. Platooning is likely to be a transportation game-changer, save driver labor costs, increase road safety, and deliver environmental benefits.
Splitting the Cost of Technology
Today, carriers and 3PLs are working together to leverage these and other techniques to drive higher effectiveness and cost savings throughout the supply chain without compromising service level. 3PLs have demonstrated experience in leveraging emerging technologies and can often assist organizations to rapidly exploit what's accessible (and near-horizon) at scalable costs.