Advanced technology can transform a logistics operation, but before committing to a project, make sure you understand what problems you’re trying to solve, know your options and put the right team in place to ensure success. Michael Senftleber, chief technology officer (CTO) at Arrive Logistics, takes us through the process of implementing advanced tech solutions to logistics, managing hurdles and ensuring progress.
Logistics operations have to be resilient and agile under normal circumstances, and the past two years have been anything but ordinary. Logistics professionals have faced obstacles, including blocked shipping routes, acute labor shortages, unpredictable virus outbreaks that affect regional operations and countless other curveballs. Many logistics organizations are looking at digital transformation as a solution.
Deploying advanced technology can maximize load volume, increase visibility and streamline order entry and accounting processes. Logistics professionals can help carriers and shippers eliminate empty trucks and avoid blocked or slowed shipping routes with the right technology. Advanced technology saves time, money and resources — while building resilience. But applying advanced technology to improve logistics requires a complete understanding of the business problems you’re trying to solve, the available options and the team you’ll need to reach your goals. Here are some tips to help you successfully integrate advanced technology into your logistics operation.
What Problems Are You Trying to Solve?
One common mistake people make when using technology to improve operations is thinking too small. Instead of starting from a big picture view of how they want to differentiate their company in the marketplace and then applying technology to create the solution, they choose a technology framework first and then change their business to accommodate the technology.Â
Additionally, businesses often fail to focus on what makes their value proposition unique when adopting new technology. When trying to solve a business problem and set the company apart from competitors, logistics operations leaders face a build vs. buy dilemma, and pinpointing what makes their company unique can inform that decision. Invest in your key differentiators. Your HR team probably bought a human resources information system instead of building one if HR is a supporting organization. The same principle applies.
Keeping Your Project on Track
Understand the business problems you’re trying to solve and identify the technology you’ll need to apply and create to solve them. These tips can help you keep the project on track and get the best results for your people and your customers as you develop and deploy solutions:
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- Break your project down into strategic focus areas so you can apply or create the best solution for each. In some cases, there may be existing solutions you can use to streamline logistics processes, and for others, you may need to create a custom solution.Â
- Avoid the temptation to focus on “quick wins†as you develop solutions. That can snowball into workarounds that are dependent on individuals. Instead, build solutions for roles and personas.Â
- Use intuitive software design principles to achieve a modern user experience, build workflows, and cross-train staff to maximize efficiencies and resilience.
- Automate manual tasks and connect data across the business so your people can focus on higher-level work, which delivers more value to the company and customers.Â
It’s essential to understand the entire lifecycle of business processes to leverage technology appropriately. For example, in third-party logistics, the task is to make it easier for customers and suppliers to do business using whichever channel they prefer, i.e., via phone, online, chat, interactions at a physical location, etc. Application programming interfaces (APIs) can connect data across a multichannel ecosystem in a way that improves visibility and transparency in logistics, which adds value.Â
Shippers want to move freight, and carriers want to grow their business by efficiently transporting cargo. To the logistics professional, a load is the relevant work unit. The logistics brokerage handles it for the shipper. Technology can streamline and simplify the processes involved to complete that work unit with automation on both the shipper and the carrier side. This frees logistics employees to add value by handling exceptions and other tasks that technology can’t handle.Â
See More: To Efficiency and Beyond: Smarter Field Service Management with Schedule Optimization
Driving Transformation with Data
It helps to think like a tech company when transforming your business with technology, focusing on product management, user experience design, and engineering. If you plan to turn data into an advantage that sets your company apart from competitors, think beyond just capturing data, which won’t be enough. Partner with all relevant stakeholders to understand the possibilities to apply that data to create value at scale.Â
Data science and machine learning are powerful assets, but many companies miss an opportunity to leverage their value fully. To go beyond the surface efficiency gains, you have to invest in architecture and work with data scientists who have academic qualifications and enterprise experience. Their past projects don’t necessarily have to be in the same industry, but it’s imperative to find data science experts who have built, deployed and used technology in an enterprise environment.Â
The bottom line is that digital transformation requires clarity on the problems you’re looking to solve and the approach and people you’ll need to reach your goals. It’s also critical to manage expectations about what you can achieve with technology and the required timeframe to accomplish your objectives. Once you put all these pieces into place, you’ll be ready to apply any advanced technology to transform your logistics operation.Â
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