As time continues to move forward, everything inevitably changes. The world as it is has changed drastically in the past decade. Also standards change with technological improvements. One thing that has gone through this era of progression is the supply chain, which can also be referred to as the logistics network.
While most fields experience evolution stronger with a far-reaching effect, the logistics network is improved periodically with small changes here and there. It also works on a per-organization basis with each entity bringing something to it. There are ways in which the logistics network can be improved with many parties having already paved the way. If you have a business such as one involved in fulfillment services for ecommerce, the following will be especially useful.
In What Ways Can It Be Improved
Major organizations will often say that logistics networks in general are invaluable. This is because it supports all aspects of the company both directly and indirectly. It is simultaneously the organization’s biggest potential weakness, as one crack will bring the tower down.
It is for this reason that it has to be tweaked and strengthened as much as possible. Fortunately, the aforementioned advancements in technology can also contribute to the bettering of the supply chain.
However, getting to this point can only begin when an organization recognizes certain things within itself. In total, there are four points that every company can address to ensure that evolution takes place smoothly:
Rethink the Evolution Process
The word “innovation” is more often than not used to talk about high-level technology that is yet to be used. This, however, isn’t practical and the focus should be more on current tools that can be used today.
These pieces of tech should ideally be of the best quality which means they have to be proven to work. This is not to say that the tech cannot be improved as well. The improvement of the tech will happen over time and the organizations will have to adapt.
It is also important to test out whatever you decide to use over a relatively short period of time preferably three months at most. This is in order to not waste any more time than is necessary.
Breaking Down the Silos
Any form of cached data that has nothing to do with the logistics network is known as a silo and it could severely handicap an organization. Doing away with these in particularly affected areas is a great start to making better advancements.
To do this, an organization has to:
- open up communication between departments and groups;
- this could in turn lead to teaming up with said groups and experts;
- it will help to open up the company to advancements.
Not Obsessing Over Costs
Innovative ideas often come with a price and this is something that should not be sidestepped. Those in senior positions have to be convinced that this is the way to go and this means that they cannot be cheap. Creative inventions of all kinds are an investment and this means that their view should always be long-term.
Taking Ideas from Everywhere
Whether it’s from the largest companies to the smallest, you can learn a thing or two. In this case, a company such as Amazon is a prime example. However, not every company is capable of that type of technological progression. As such, you should
look at this company and its practices closely. Other companies may have similar practices and they should be studied as well.
Changes that Can Be Made
With your company primed for a makeover, you can begin to look at and implement certain practices to better the logistics network. The following are just a few of the things that can be done on the part of the company:
1. Big Data Analytics
Technology has come such a long way that we can collect and analyze large pieces of data at a time. Through the use of custom algorithms and even possible artificial intelligence, this process is now incredibly efficient. As such major decisions concerning the supply chain can be achieved in a far quicker fashion.
2. Global Location Solutions
The transmitting and tracking of data used to be time-consuming and this was especially true when cases were international. With the latest geolocation technology, which can consist of various wide-area networks, this is more effectively handled.
3. Automation
In factories, the use of manual labor proved to be expensive and not efficient due to human error. The creation of robots completely changed that. Interestingly enough, those robots are getting increasingly outdated and the next evolution would be to make them intelligent.
4. Transportation
The transportation of all sorts of merchandise is an obvious thing to update because any manual work handled the old way is tedious. This is why software specific to the management of transportation and logistics had to be created.
Other parties down the supply chain, and especially customers demand that these goods be delivered on time. Tracking said goods in transit is also easier via software, making it a must-have.
5. Radio-based Identification
This type of technology has been around for a few years, but was not entirely refined. Its purpose was to keep track of the state of whatever the accompanying device was attached to. Using their recent barcode-like appearance, they are easier to implement and use effectively.
Final Thoughts
To avoid being left behind, it is important to stay relevant. The upkeep and enhancement of the supply chain is the perfect example of this and companies know it. Organizations that do not attempt to evolve will inevitably get surpassed by competitors that do. That is why businesses that are hesitant to go this route have to look at it as an investment.
Technology seems expensive in the beginning, but this all changes when the future of the supply chain is considered. In the years to come, that money will be all but inconsequential compared to the profit it brings.
