Want smooth logistics? Here's what you need.

As the world continues to return to normal and borders reopen, Asia’s supply chain challenges are finally starting to ease.¹ Holiday rush akin to the pre-pandemic era is here, and consumers are back to flocking to businesses for their needs.

As long as enterprises can plan and prepare the tools they need to ensure logistics processes go smoothly, they can expect to face little to no issues. IT Outlet Inc.’s CEO Kevin Huber puts it perfectly: “Get your internal processes down when it comes to delivery of information around order tracking and statuses. As consumers, we all know how comfortable we feel once we know our package is on the truck for delivery. Work with your shipper to deliver auto-updates to your customers when their packages ship. It’s the last piece of the puzzle before you get paid, so make it count!”²

So how do businesses know they’re ready for delivery peak periods? First, we must understand the APAC logistics landscape and trends to equip ourselves before demand in delivery increases.

With COVID-19 restrictions easing, supply delivery times are continuously improving. But despite this good news, some issues remain and need to be resolved.

One such issue is how Europe’s biggest export hub, Rotterdam Port, has a long backlog of undelivered goods,³ resulting in many Asian exporters’ containers sitting empty at the port. In addition to delays, disruptions and conflicts worldwide, such as labour shortages, China’s lockdowns, and the ongoing war in Ukraine, have led to logistic costs soaring up to 22.4%.²

As such, the logistics industry needed to transform itself to keep up with the world’s demands. MMI Asia’s Director and General Manager Michael Wilton succinctly sums it up: “In a disrupted world, the logistics industry has had to adapt, change, and remain flexible to meet the extraordinary demands the global economies have placed on their sector.”⁴

Thus, global companies are revising internal processes to shrink their supply chains, turning to onshoring or nearshoring to minimise the effects of disruptions. Case in point: Ikea India announced its long-term goal to partner with more local sources, targeting an increase from 27% to 50%.⁵

To do so, companies must adopt cutting-edge technologies to help transform supply chains.⁶ It may bring many changes in multiple processes, but such changes will benefit logistics in the long run, which is why companies must understand these technologies.

Cloud-based technology

Companies can leverage IT resources like cloud-based technology to optimise internal processes. Using cloud-based computing, businesses can enable real-time communication through all hierarchy levels, access up-to-date information without delay, and streamline various processes like product fabrication, packaging, and shipment. This way, companies can deploy vital resources as needed.

A perfect example is logistics provider Ninja Van,⁷ which has partnered with Google Cloud to adopt a logistics information solution. The cloud-based technology enabled Ninja Van to keep up with the demand for its logistic services, which have grown three times throughout the pandemic.

Robotics & AI

Businesses can also leverage AI and the Internet of Things (IoT), combined with robotics, to automate manual work and improve efficiency across the supply chain. Such technologies are already being used and developed globally, with the logistics industry benefiting greatly.

Collaborative robots, or cobots, like 6 River Systems’ Chuck⁸ can set a less strenuous pace for workers, leading in work zones and minimising human movement and physical strain in the warehouse. Cobots can determine an optimal route based on warehouse conditions and the priority of tasks to increase productivity.⁹ During peak delivery seasons, cobots can also keep up with demand without requiring businesses to hire additional staff.

Meanwhile, drones can assist in managing inventories, removing the need for manual counting. Drones can scan barcodes, record item locations, and even find hard-to-reach items that humans would need fork- or scissor-lifts to get. Though this function is currently undergoing regulations, drones can also complete order deliveries quickly, as demonstrated by Amazon Prime Air.¹⁰

Finally, businesses can also look into driverless vehicles, which allow one operator to monitor multiple vehicles and thus complete several deliveries simultaneously, reducing operating costs. Operators may even monitor all vehicles on their phones, ensuring ease and convenience for workers. Uber¹¹ has restarted its self-driving development programme; soon, we might see more driverless trucks on the roads.

Advanced and predictive analytics

With trends and developments constantly changing locally and globally, businesses need to stay current, which may seem difficult, but not when they use advanced and predictive analytics. An application of machine learning, advanced and predictive analytics uses data from IoT, weather patterns, dynamic sales information, and historical data to guide businesses into making sound and profitable decisions.

For example, Lazada Singapore¹² utilises their consumers’ data to understand each shopper’s profiles and habits, allowing them to offer better product recommendations and display relevant promotions and ads. Moreover, with advanced and predictive analytics, a business can optimise routes, improve inventory processes, forecast consumer demands, and save costs through predictive maintenance.

Digital twins

A virtual model that reflects a real-world situation, system, or entity, a digital twin is essentially a microcosm of an actual product, process, or system. Using a combination of IoT, AI, and data analytics, a digital twin can represent an end-to-end supply chain from producers and manufacturers to logistic providers and customers.

A digital twin can stay constantly updated to mirror its physical twin, informing businesses of solutions in real-time. Companies can also use digital twins to test changes in the supply chain and confirm their effectiveness before applying them to real-world products and systems.

For years now, multinational company Unilever¹³ has adapted the digital twin technology, partnering with Microsoft Corp. to build virtual versions of some factories across the globe. They use sensor-equipped machines to collect and analyse data and create digital counterparts that track near-real-time physical conditions. With digital twin technology, Unilever can optimise processes, minimise material waste and cost, and churn out quality-standard products.

As we’ve seen, the logistics industry welcomes more cutting-edge technologies to optimise logistics and help enterprises manage peak delivery seasons.

Moreover, these advanced technologies also contribute to sustainable or green logistics,¹⁴ which is a growing concern and consideration among consumers as the climate crisis worsens. With 70% of consumers willing to pay 5% more for sustainable products,¹⁵ more businesses will shift to green practices, including sustainable shipping, to keep up with the trend and reduce the environmental impact of logistics.

Don’t let your business fall behind. It’s time to develop a more efficient, sustainable supply chain with cutting-edge technologies. Stay ahead of the curve, and speak to us today.

Resources:

¹ Insider Intelligence. There are signs Asia’s supply chain challenges are starting to heal, 2022.
² Forbes. 15 Ways E-Commerce Companies Can Prepare For The Holiday Rush, 2022.
³ The Economic Times. Asia’s shortage of empty containers may worsen on Rotterdam jam, 2022.
⁴ Air Cargo News. New Transport Logistic event set for Singapore in 2023, 2021.
⁵ Reuters. IKEA India to source more products locally to tackle rising inflation, 2022.
⁶ 6 River Systems. Ultimate guide to technologies that are transforming supply chains, 2022.
⁷ Cision US Inc. Ninja Van Goes the Extra Mile with Google Cloud to Fulfill Vision of Tech-Enabled, End-to-End Logistics Management for Businesses in Southeast Asia, 2022
⁸ 6 River Systems. Meet Chuck: A better way to fulfill.
⁹ 6 River Systems. Warehouse layout optimization tips to increase production, 2022.
¹⁰ Amazon. Amazon Prime Air prepares for drone deliveries, 2022.
¹¹ Bloomberg. Uber Revives Self-Driving Taxi Dreams, Plans to Start This Year, 2022.
¹² Huxley. What does shopping on-the-go and big data have in common?, 2022.
¹³ The Wall Street Journal Online. Unilever Uses Virtual Factories to Tune Up Its Supply Chain, 2019.
¹⁴ Bringg. Green Logistics: Strategies for Eco-Friendly Delivery.
¹⁵ Transport & Logistics Middle East. Six Trends that will Shape Shipping & Logistics Industry by 2023, 2022.