Global Connections through Technology
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Executive summary
In the global world, transportation and logistics are currently experiencing significant changes due to increased customer expectations. However, manufacturing is becoming customized, and millions of customers expect to improve goods delivery and flexibility in supply chains and logistic parameters. Logistic industries are under acute pressure to offer better services to millions of customers through intelligent use of modern technology, data analytics, and business automation. Every business experiences massive competition, forcing millions of customers to start logistics operations to carve the value chain through digital technology exploration. Collaboration and sharing are crucial elements of logistics. However, many companies have begun adopting Uber’s business approach to deliver milestone partnerships and achieve business standardization in various logistic operations. In common dominant theme is to allow the logistic industry to apply the required technology to achieve market dominance. Multiple problems and challenges are facing the transportation and logistics industries due to a lack of using the right technology in their day-to-day operations. In the world of business, modern technology has extensive effects on achieving competitive advantage through cost differentiation. However, technology has increased effects on value chain activities, and companies are expected to gain a competitive advantage by exploring marketing scope. For example, black-chain business, the internet of things, artificial intelligence, business automation, 3D additive manufacturing are major technological transformations expected to transform the business landscape in achieving a valued chain that helps the logistic industry realize its competitive advantage. There is, however, a need for a physical internet cloud solution—that is expected to bring more value chain standardization through shipment orientations, labeling, and supply chain systems. With increased technological changes, complex competition in logistic companies is expected to offer digital platforms via the acquisition of entrepreneurial start-ups that ensures continuous profit acquisitions.
Table of Contents
Lack of digital culture and training. 6
Lack of Machine Learning and Artificial Intelligence Techniques. 6
Lack of Digital Standards, Norms, and Certification. 7
Evolving Customer Expectations. 7
Technological Breakthroughs. 8
New Entrants to the Industry. 9
Role of Emerging Technologies in Reaching the Transposition Organizations Competitive Advantages 10
Conclusion and Recommendations. 11
Global Connections through Technology Report
Introduction
Logistics industries are currently facing future stoppage due to increased digitization and evolving customer expectations. Modern technology in logistics companies enhances greater efficiency due to collaborative approaches aimed at re-shaping the market as new entrants and start-ups keep dominating the world. With approximately US 4.6 trillion dollars’ worth of revenue in place, logistics companies need to adopt new technology to achieve a competitive advantage in world markets. However, increased customer expectations, current technological dominance, new entrants in the logistic industry, and collaboration measures form formidable forces that disrupt logistics companies’ future. The fundamental disruption forces have varying reputations to millions of individual enterprises depending on the segment of ownership and operations. The future of logistic companies does not hold the vacuum as digitization is expected to bring formidable stability and solve long-term challenges affecting logistic industries.
With significant differences in profitability and margins, collaboration, start-ups, complexity in competition, and scale matters hold the industry’s future. Technology is viewed as a game-changer as millions of customers depends on B2B and B2C segment. The logistic sector needs collaborative growth, which will drive market leaders to acquire strong market dominance in a volatile market. Complex competition in the logistic business is expected to grow in diversified directions as suppliers and customers become profitable players in the logistic market. The report offers to review problems experienced in the transportation and logistics industry due to lack of the right technology, disruptive factors affecting the logistic sector, and technology’s role in achieving competitive advantage in the logistic industry. Finally, the report offers technological recommendations—that logistic companies must embrace to gain a competitive advantage.
Problems and Challenges Transportation and Logistics Industry Face Due To Lack of Having the Right Technology in Their Operation
Lack of digital culture and training
Digital fitness in logistic logistics companies has posed a considerable challenge from data storage to privacy. Currently, there is no global sector that is expected to subscribe highest stakes on data analytics other than transportation and logistics industries. The logistics and transportation companies have experienced limited access to data despite vast opportunities to improve business efficiency and better customer service delivery. The integrated value chain has experienced substantial declining forecasting—that is expected to scale up logistics and transportation capacity to enhance improved business plans. Due to insufficient digital transformation, the logistics and transportation company has experienced declining transparency, efficiency, and safety in supply chains. Companies are unwilling to adopt profound collaborative horizons due to uncertainties concerns in data security and privacy.
Lack of Machine Learning and Artificial Intelligence Techniques
Cloud computing technology has dramatically transformed many businesses due to virtual freight forwarding in operational areas. Logistics and transportation industries have not achieved the required level of flexibility and scalability in their operational efficiency due to limited machine learning and AI in data analytics. Logistics companies experience high financial investment requirements that need machine learning and investment of artificial intelligence techniques, especially in data analysis. With limited access to machine learning and AI techniques, logistics and transportation industries have experienced declined customer experience and limited operational efficiency in daily operations. The logistic industry is experiencing reduced inventory visibility and management, thus declined predictive maintenance.
Lack of Digital Standards, Norms, and Certification
Transportation and logistics companies are rated at 28% despite 45% digital achievements in automation and electronics companies. The lack of digital culture has enhanced declined digital standards, norms, and employee certification. Logistics industries have not adopted black-chain technology, and as a result, the transport and logistics business are experiencing declined supply chain security, reduced efficiency, reduced errors, and increased human workforce. Logistics companies need to adopt robotics and automation to minimize workforce and lower transportation costs.
Disrupting Factors Affecting the Logistics Industry and Their Implications for Individual Companies
Evolving Customer Expectations
Individual customers are thriving to better shipment services from transportation and logistics companies through improved efficiency, flexibility, and transparency. Currently, operational models and profitability parameters are experiencing difficulties due to price fluctuations. There is no doubt that the logistics industry operates B2B and B2C customers who often rely on efficiency and transparency. Manufacturing sectors are currently experiencing great customer expectations and efficiency in delivery services. Many manufacturing companies produce products based on specific end-customers as many forces influence customer interactions in supply chain structures. Multiple logistic industries frequently serve B2C customers, and digital diversity had forced many customers to achieve digital transformation before logistic companies went digital. Logistic companies need to adopt total retail in order to formulate a better brand experience for all customers across physical stores and other payment options.
Implications: B2B customers may increasingly invest in transportation assets, thereby securing more superior services to millions of customers. Transportation and logistics companies need to integrate data analytics and elaborate supply chains to ensure better business predictability and traceability. In many urban cities, technology will enhance smart warehousing as the best solution to declining logistic industries’ efficiency. As customer demands keep increasing, the logistic industry needs to adopt digital fitness to facilitate operational efficiency.
Technological Breakthroughs
Technology is currently transforming every transportation and logistics company, and the logistics industry’s future lies in success for those wishing to explore new business opportunities. Logistics companies must explore new technologies from data analytics to robotics/automation. With increasing digital companies worldwide, the integration of new technology in the logistics and transportation industries is expected to offer an array of business opportunities to millions of sectors linked to the logistics industry. Digital transportation is still a significant challenge for the logistics and transportation sector. Many businesses are expected to integrate massive data analytics to offer a long-lasting solution to the world of commerce. Logistics companies need to adopt machine learning and artificial intelligence to enhance better digital solutions to the logistics business sphere. In the short run, automation is expected to re-shape the industrial logistics workforce due to decreased services-to-costs ratios. By breaking automation into different parts, logistics firms will offer improved customer services, saving money and time. Automation loading and off-loading systems will boost operational efficiency and help in overcoming obstacles in supply chain management.
Implications: Logistics and transportation firms need to adopt automation and robots to improve service delivery. Automation will enhance information delivery in the transportation and logistics sectors, giving drivers a more reliable operational environment that supports product packaging. Profit-wise, logistic companies will focus on meeting customer expectations and building a strong brand that markets differences in the transportation sector.
New Entrants to the Industry
Digital transformation has given the rise of new business models driven by start-ups forcing current suppliers and customers to become the most significant new entrants in logistics and transportation firms. Given the nature of customers (B2B and B2C models), many start-ups in logistics and transportation firms are experiencing new challenges, and they are looking for modern technologies to explore new markets. However, many of the start-ups in logistics and transportation firms offer agitating prices, allowing the biggest entrants to offer relatively lower prices. In particular, new entrants are increasing price transparency by linking API to multiple customers providing customers with negotiable prices. Many start-up firms are adopting a “sharing economy” through collaboration with the biggest entrants, thus providing better transit platforms never live before. For example, Uber has established service delivery through UberCARGO deliver in Hong Kong and Mainland China. Of the most important, start-ups are not only available entrants in the logistics industry but major players shake-ups the largest commercial dynamics.
Implications: There is, however, a need for the significant entrant to maximize new technology to achieve a better competitive advantage over the start-up entrants. Many start-ups should enter into a new market through collaborative means to acquire a strong sharing economy. Self-driving lockers and machine-parcel firms should collaborate to improve transit capacity and allow effective customer delivery, efficiency, and interactions through price negotiations and transparency.
Role of Emerging Technologies in Reaching the Transposition Organizations Competitive Advantages
Emerging technologies have witnessed increased roles in digital transformation. Many organizations are relying on new technology to gain a competitive advantage over their rivals. However, logistics and transportation sectors are not exceptions. For example, blockchain as new technology has numerous roles in transportation and logistics firms. Logistics firms can use blockchain technology to boost security due to increasing threats from hackers. Logistics firms are applying blockchain technology from cryptocurrency structures to business transactions. Block-chain is seen as the gate-pass to transaction transparency, transaction records, and information synthesis. Right now, blockchain technology is seen as key to business collaboration in the digital ecosystem. Transportation firms use emerging technology to offer better customer delivery through improved transactions and consulting services.
Internet of Things is changing the logistics and transportation landscape as many start-up logistics firms are using new technology to achieve cost differentiation and leadership to gain a competitive advantage on the market. The Internet of Things is seen as new downstream, expected to create increased revenue as the transportation sector will connect machines with assets without actual human interactions. Modern technology has transformed logistics firms’ efficiency has new robots, and automation has replaced human labor leading to increased profit margins. Today, transportation and logistics firms can process data at a higher speed, thus saving time and money. For example, artificial technology will ultimately deliver absolute services to shareholders and deliver a great experience to workers and customers, thus ensuring increased commitments.
Conclusion and Recommendations
With increasing customer expectations, logistics and transportation firms need to adopt new technology, as manufacturing is becoming more customized due to evident digital transformation. For the logistics firms dealing with B2B customers, new technology is the key to achieving efficiency and transparency. The internet of things should be seen as the best strategy for manufacturing firms to produce equipment and consumer goods from a customer interaction perspective. Leading players dealing with B2C customers need to create a new brand that will increase customer interactions. However, logistics firms should use automation and robots as critical elements of logistics operational models. Many companies operating with transit goods need to use automation in warehouses to reduce labor costs. Moreover, the companies will reduce the human workforce and increase efficiency and timely delivery in warehouses. The logistics firms should encourage autonomous vehicles to ensure a reduction in workforce and increase efficiency and transparency in delivery processes. In particular, transportation industries should adopt drones which will increase cost efficiency through improved inventory, surveillance, and delivery.
References
Gutelius, B., & Theodore, N. (2019). The future of warehouse work: technological change in the US logistics industry. UC Berkeley Labor Center.
Ceniga, P., & Sukalova, V. (2015). Future of logistics management in the process of globalization. Procedia Economics and finance, 26, 160-166.