Logistics Viewpoints

A complete analysis of logistics trends, technologies, and services

Editor’s Choice: 6 Reasons Why Companies Need IoT

Logistics Technologies | By •

IoTNote: Today’s post is part of our “Editor’s Choice” series where we highlight recent posts published by our sponsors that provide supply chain insights and advice. This article is from Kirk Carlsen, Director of PLM Product Marketing at Oracle, and looks at the importance of IoT.

During my time as a professional cyclist, I learned that the more information and technology I could leverage, the faster I rode. As technology improved, the data and insights I collected from daily training optimized my performance. I monitored things like heart rate, power, and nutrition and incorporated all of it into my routine. The more I analyzed and integrated this data into my training regimen, the better I began to understand how sensitive each individual aspect of my lifestyle was and how information delivered key indications of my fitness. In a sport where races are won and lost sometimes by inches, any increase in my fitness, even if it was only one percent, could mean the difference between winning and losing. If I could have connected my entire body to sensors that delivered real-time insights to increase performance, I would have.

In athletics, I was just touching the surface of how to incorporate information technology into understanding human potential. Luckily for business, similar enterprise transformations are possible today by using key technologies such as the Internet of Things (IoT). With the visibility and analytics delivered by connected devices, companies can make the right decisions at the right time, safeguarding profitability and customer service. And not unlike cycling, small percentages in improvement for a business could mean the difference between establishing competitive advantage or dropping behind the pack. So, here are six key reasons why I think organizations across every industry need to adopt IoT into their digital transformation strategy.

  1. Increase visibility across siloed business functions to improve business maturity

With billions of connected devices transmitting potentially valuable information, you can begin leveraging market awareness and measuring performance within your organization. With the evolution of digital business, operating models are shifting to derive business value and competitive differentiation from visibility and predictive capabilities. The digital journey begins by integrating these once siloed functions into end-to-end driven complete architectures. IoT is the digital thread that brings these functions together.

  1. Drive innovation with data analytics

Connected devices and new sources of data streams are driving companies to reevaluate their current business models and adopt entirely new operating models. IoT breaks down the barrier between the customer and the organization. With data provided by connected devices, and by cycling that data back into the business, businesses can make intelligent business decisions that start with service and drive new innovations that meet expectations.

To read the full article, click HERE.

Building Profitability with Agility while Digitally Transforming the Supply Chain

Business Intelligence | By •

digital transformation Many companies were in the midst of digitally transforming their supply chain when the Convid-19 pandemic hits. During that time, with great volatility, many companies struggled to keep pace with increasing customer expectations around delivery on-time.

In my Logistics Viewpoints article in January 2021, “The New Definition of Supply Chain Agility and Resilience in an Unpredictable World”, I highlighted that modern supply chains must be built on a foundation of extreme agility and responsiveness. As the world is seeing evidence that we are closer to the light at the end of the tunnel and looking forward to the post pandemic recovery era: agility, resilience, and consistent (not just when absolutely needed) responsiveness will be the new competitive differentiators. In this part 2 article, let us continue to explore the concrete actions we can take in our Digital Supply Chain journeys.

Some companies chose to forgo the transformation initiatives to focus on dealing with disruptions to their business. Some chose to carry on with their digital journeys as they must find better ways as the physical and operational logistics footprint were changing rapidly to adapt to the new customer-first, eCommerce expectations. Almost a year after the outbreak, in their session about “GE Appliances’ High-Speed Upgrade of Its Digital Supply Chain” at the 25th Annual ARC Industry Forum event, GE Appliances discussed how they continued to take on that Digital Supply Chain Journey at the outbreak, so that they can track shipments from manufacturing plants in real-time or anticipate disruptions with machine learning (ML) that could slow customer deliveries.

Plan and Execute for Success

Some manufacturing, consumer brand, retail and logistics service companies made ambitious goals to delight customers through digital transformation but in some cases significantly eroded profit margins. Some organizations invested in solutions that offer little more than knee-jerk reactions, resulting in not-obvious improvement to the bottom-line or even net losses.

Before the pandemic, in a study of logistics providers conducted by Fraunhofer IML, among those embarking on digitalization initiatives, only 25% of logistics providers in the Fraunhofer IML survey are leveraging digital technologies to think outside the box and reinvent their foundational delivery model. These forward-looking companies understand that digital transformation is their means to reinvent themselves, leapfrog the competition, increase agility, and establish themselves as strategic, long-term partners with their customers. While this is encouraging, 75% see digitization as a way to either replace existing analog processes with digital ones or support new processes for customers within their existing operations.

Now, logistics providers are accelerating the pace to adopt new technologies to serve customer-first and eCommerce expectations. At our Blue Yonder ICON event later in April this year and 3PL Execution Forum in June, 3PL and 4PL companies will explain how they are leveraging innovations as an advantage. The supply chain can increase its visibility by leveraging AI and analytics to identify internal or external anomalies that are the first signal of a disruption. What comes after that is the leveraging of AI and its ability to make autonomous decisions across the end-to-end supply chain when disruptions do occur. By leveraging the analysis of historic events and probabilistic outcomes, new technologies can pull the right levers to correct supply chain performance, with much less or no human intervention.

The Key to Long-Term Success: Build Agility, Resilience and Profitability Together

As supply chain managers decrease their focus on exception management and tactical intervention, they can devote their time and attention to more strategic activities such as market research, outsourcing and data science. In addition, the worlds of planning and execution is converging, with the gap between demand, production, and logistics closing.

From an inbound operations perspective, visibility continues to be a common thread in facilitating this convergence. From an upstream point-of-view, raw material availability, visibility, sourcing and timing will continue to be the primary areas of focus, particularly with organizations looking to mitigate any new market disruptions. Today, companies are realizing that having excess inventory, logistical expediting, and promotions without tight supply chain execution, without unifying logistics, and without a scientific basis may not be the solution and. In fact, it may lead to increased variable costs.

Ideally, with this convergence, the demand data should be shared upstream with suppliers and other trading partners, creating a new demand fulfillment strategy and a collaborative response to any deviations from plan. It should also be shared downstream. In the upcoming hyper-connected world, the entire network can proactively sense and respond to potential supply chain disruptions caused by major events such as natural disasters and pandemics, as well as smaller events such as local weather, port congestion, equipment failure, capacity shortages and labor shortages.

The Crucial Role of Trading Partners

An example is carrier network services for executing a cohesive set of first-, middle- and last-mile operations and optimizing common carriers and fleets. Connected via a common technology platform, the supply chain partners can respond to unexpected demand volatility caused by social media, news reports or special events. The traditional supply chain has often been characterized by blind spots, which are caused when a lack of collaboration makes trading partners unable to see key information such as product location, available-to-promise inventory or a realistic customer delivery date.

These blind spots can no longer be tolerated in today’s environment of extreme volatility and high customer expectations. In a survey published by the Council of Supply Chain Management Professionals (CSCMP), siloed systems and/or processes were named the single greatest barrier to driving supply chain innovation and improving the customer experience. In addition, 46% of the companies deemed “most innovative” in the study reported having 80-100% electronic connectivity with their trading partners. Supply chain partners that are unable to share data may struggle to find a common ground and collaboratively respond to demand and supply volatility as a single, linked entity.

Fortunately, IoT, AI and ML are converging to illuminate this kind of critical information and create true visibility, and responsiveness, across the supply network. All trading partners can see potential disruptions in the product flow to the marketplace, while also gaining a probabilistic view of the potential impacts. In addition to seeing upstream supply obstacles, all trading partners can also recognize downstream fulfillment issues such as low inventories or labor shortages. In the same Fraunhofer IML study cited earlier, 81% of logistics service providers say that market demand for digital collaboration and transparency along the supply chain is a “very strong” (36%) or “strong” (45%) influence on their business. It will be interesting to compare the results in future surveys as eCommerce propels better management of logistics operations each-es in additional to bulk.

At SodaStream, which provides 1.5 billion liters of homemade sparkling water to millions of homes globally, advanced warehouse solutions are leveraged to avoid delay to the plan-to-order process and enable more efficient order fulfillment and inventory management processes.

At Swedish appliance leader Electrolux, technology investments have been continuing to link its geographically distributed, highly complex worldwide supply chain and encourage close collaboration both internally and externally. Selling 60 million products annually in 150 countries, Electrolux has been viewed as a leader in adopting digital supply chain solutions that facilitate this collaboration and focus the entire value chain on the end consumer. A 2018 academic paper authored by researchers at the University of Southern Denmark noted, “Electrolux is the company in the worldwide household appliances industry with the widest geographic reach, also product-wise….Electrolux is balancing between globalization and localization in the different key value chain functions, searching to take the best from the two.”

Leverage Digital Journeys to Win

Both upstream and downstream signals will increasingly pull products from supplier warehouses and corporate distribution centers alike and affect tactical transportation and other logistics related plans. While the advanced technologies are available to support the level of agility required for an uncertain world, often the barrier to successful adoption is cultural. But the journey to improve must accelerate, unified logistics and advanced technologies will support the hyper-connected supply chain to come. We will continue to explore the steps in the digital journey (such as on-demand transportation, labor, and warehousing) and examples of determination from the top in addition to logistics operations.

Terence Leung is Senior Director, Solutions Marketing at Blue Yonder. He has a keen interest in digitalization and the value it generates throughout the supply chain. In this role, he leads his organization to drive thought leadership and go-to-market strategy for supply chain execution and logistics solutions. In addition, he works with customers to understand requirements and drive best practices.

Prior to joining Blue Yonder, Terence was the leader in product marketing and value engineering at One Network. Previously, he was in leadership positions in industry management at Savi Technology and solutions and management consulting at i2 and Deloitte Consulting respectively. Terence holds an MBA from the University of Texas, Austin and an Electrical Engineering degree at MIT.

Class 1 Railroads Need to Invest to Improve their Performance

Transportation | By •

Class 1 Railroads

Class 1 Railroads Have Been Charged with Unfair and Arbitrary Demurrage Fines

My colleague Muhammad Wasay Rashid has just completed a market study on the adoption of Internet of Things (IoT) technologies by the global rail industry, including the freight segment. Mr. Rashid reports that sales of IoT technologies for Rail are bigger, and growing faster, in Asia and Europe. This article will explain why there are good reasons why North American Class 1 Railroads should be more aggressively investing in these technologies, particularly geolocation technologies.

IoT “things” are industrial smart devices, often sensors, that connect to the Internet and can collect useful data. In rail these IoT devices are used to improve rail operations in several ways. Rail applications that utilize the sensor data are Geolocation and Service Performance, Security, Train Control, and Maintenance.

Geolocation

IoT-based geolocation enables freight, or the empty cars shippers need to put their freight on, to be tracked. This solution empowers railway operators to locate their empty railway cars or track a customer’s cargo on an outbound shipment.

In the US, Class 1 railways’ unfair, arbitrary, and illogical fines led to a groundswell of complaints and hearings by the Surface Transportation Board last year. While the bulk of the proceedings were focused demurrage and accessorial fines, shippers also took the opportunity to complain about poor service. Class 1’s estimated time of arrival (ETAs) performance is horrible. Rail carriers expect shippers to look on their computers to see where their cars are. But because cars pass from one rail line’s tracks to another, that means looking in multiple systems. ETAs are at the mercy of the least accurate leg of a trip. And the amount of time a car will spend at an interchange yard is particularly hard to predict. The whole idea that shippers should have to continually look online, instead of being provided updated ETAs, is ludicrous. Geolocation will improve North American shippers’ happiness, but Class 1 Railroads still need to work far harder to improve their service performance.

Security

Security includes video surveillance of trains, cars, and wayside assets to prevent theft or damage. Other IoT sensors can be used as well. Rail cars may have sensors that detect a car door’s motion – whether the door is being opened, light – another way to detect whether a rail car door open or closed, or vibration. Systems can be designed with geofences. A geofence is a GPS generated map perimeter for a real-world geographic area. If a rail car door is being opened outside a designated geofence location, it is likely that theft may be occurring. On some modes of transportation, vibration, humidity, and water sensors are used to determine whether cargo has been damaged on route and help to pinpoint the responsibility for that damage. That is far more common for Ocean than Rail.

Train Control

The main concept of train control – or “positive train control” as it is often referred to by North American Class 1 Railroads – is that the train receives information about its location and where it is allowed to safely travel. Train control helps prevent accidents by enforcing the train’s speed, including in areas where there are temporary speed restrictions. It is also used to improve rail worker safety for workers working next to track.

Equipment on board the train interfaces to a centralized train control application and aids in enforcing safety. The IoT visibility can be based on radio frequency identification (RFID) or the global positioning system (GPS). RFID in train involves tagging rail cars and having read stations along the track at certain intervals. RFID does not allow continual monitoring of a train’s location. The more read stations, the better the visibility. But GPS allows for almost continued monitoring of trains and is clearly a better form of IoT when it comes to train control. The Association of American Railroads reported in 2018 that Class 1 Railroads were using GPS for train control across over 83 percent of total freight mileage.

Maintenance

Maintenance applications use IoT sensors to transmit data like engine temperature, fuel mixtures, coolant levels, and many other forms of data. Infrared sensors can be used to track the condition of the tracks. Rail cars can have vibration and other sensors that determine the health of these assets.

This sensor data can be used for condition monitoring – the asset is in good shape or bad shape – or it can be used for predictive maintenance. In predictive maintenance, instead of scheduling maintenance for an asset after so many miles traveled, the maintenance is based on what sensor data and advanced analytics infer about the health of the rail asset. Predictive maintenance allows the maintenance budget stretch much further than traditional maintenance regimes. Predictive maintenance improves the reliability, safety, and the efficiency of the railway network.

Final Thoughts

Rail is a low-cost way to move bulk freight. Despite being significantly less costly than truckload, Class 1 Railroads have been steadily losing market share to truckload because of bad on-time performance.  As new technologies like truck platooning and autonomous driving become real in the next several years, Class 1 Railroads are apt to see these market share losses increase dramatically.

Digital Transformation in Retail

Logistics Technologies | By •

A few months ago, I attended the ARC Advisory Group’s Industry Forum in Orlando. While I was there, I had the opportunity to sit down and interview a few ARC analysts including Craig Resnick, Harry Forbes, Inderpreet Shoker, and Jim Frazier. I also had the opportunity to sit down with Ed O’Brien and discuss digital transformation in the changing retail landscape. Specifically, I asked Ed about three main things. First, the role of digital transformation on retail deliveries, both today and in the future. Second, the role of IoT, connectivity, and interoperability in the emergence of robotics and autonomy. And third, the headwinds for machines such as drones.

The role of digital transformation on retail deliveries today and the future

In many ways digital transformation is the cornerstone of what’s occurring throughout the supply chain, not only through the manufacturing and planning phase but also into the actual delivery to the warehouses.  The next step is the last-mile delivery, and in many cases between the various phases of both semi-autonomous and autonomous vehicles, they’re starting to be tested and, in some cases, putting into production.  Not without some challenges, but there’ll be some great opportunities for being able to use the digital transformation, be able to plan, to be able to route, and also, it’s kind of a cool factor too that the end users are enjoying in the pilots.

The role of IOT, connectivity, and interoperability in the emergence of robotics and autonomy

They’re central to it, but there is a wide range of issues to contend with.  Safety for not only people that are being delivered to, but also navigating through the streets, navigating to homes in the case of a pizza delivery example, but even to the point of having semi-autonomous or autonomous packages through the companies like Amazon and others that are trying to get approval, in some cases having approval. But it’s central to know what’s needed, what are the barriers on the way.

In the cases of drones for example, when and whether beyond visual line of sight will be able to be used, whether over populated areas, and in the case of sometimes the cute little delivery robots, the idea of what happens if children are in the way, what happens if pets are in the way in urban centers.  That’s why they’re probably going to more visible in less populated suburbs. But there are a number of issues that are not insurmountable, but it may take quite a while to convince the public that they’ll feel safe no matter what.

Headwinds for machines such as drones

Regulatory issues are certainly one of the headwinds for machines such as drones.  Getting the right business case for investments as well because they’re not cheap, and you’re delivering low cost in the case of pizzas, and whatnot.  Looking at packages, whether you’re looking at tests at Amazon, or UPS, or FedEx, or others, or even other services, they’re working on getting past the regulatory issues, the issues of—in drones for example, in addition to beyond visual line of sight, and being able to fly over populated areas, that’s the biggest issue for drones.

Also, the area that they could fly there are a number of those regulations.  But also, what happens if you have a failure? So, if the rotors fail, there has to be a failsafe, an audible alarm, maybe a parachute, and maybe some other feel safe way for it to land without hurting anyone.  So regulatory probably, but also the business case is going to be critical because the ones that we may see on YouTube now aren’t necessarily that big so you can’t really have a large payload to be able to pay for itself in one.

There are interesting things happening in this field of digital transformation, and although there are certain “headwinds”, it is still a major step toward the future.

The TMS Outlook

Transportation Management Systems | By •

TMS outlookI recently wrapped up my Transportation Management Systems market study which looks at the total size of the market, the forecasted growth through 2023, and the leading suppliers across a number of categories including industry, region, and customer size. The study includes a holistic view of the TMS outlook. A TMS helps companies move freight from origin to destination efficiently, reliably, and cost-effectively. Transportation management systems include 2 types of solutions. Planning and execution is focused on freight moves involving a carrier. The complete process would include procurement, creation of a route guide, planning and optimization, electronic communication with carriers, visibility and exception management, freight audit, and performance management.  Many solutions don’t support the end-to-end process described here.  For classification purposes, if the solution includes a route guide, planning optimization, and electronic tendering/acceptance execution, it is included in this category.

Fleet Management involves freight moves with transportation assets owned by the company. The complete process would include routing and optimization; visibility and exception management; transportation asset management; and performance management.  Many solutions don’t support the end-to-end process described here.  For classification purposes, any solution that includes routing plus any of the other modules listed above will be deemed a fleet management solution.

I was recently interviewed by ARC Advisory Group’s Allen Avery to take a deeper look into the TMS outlook for the foreseeable future and identify some of the larger trends in the TMS market. The full interview is below.

TMS Outlook – Trends

One of the biggest questions that comes up is around the key trends that are driving companies to explore transportation management systems. The primary reason companies buy a transportation management system is for freight savings. These freight savings can be attributed to simulation and network design, load consolidation and lower cost mode selections, and multi-stop route optimization. But few companies would buy a TMS if it would lead to declining service levels. A TMS maintains the service levels by understanding the origin to destination lead times and using that as a constraint during the optimization run.

Second, the freight spend required to invest in a TMS solution is lower than ever. Historically, if a company did not have over $20 million in freight spend, purchasing a TMS was out of the question. The emergence of SaaS solutions, and less sophisticated on-premise applications, has reduced that number significantly. Now, essentially companies of all sizes can afford a TMS.

Third, companies are debating whether to bring their transportation management in-house with a TMS or outsource to a managed services provider. The freight savings and service improvements associated with TMS are quite similar to MTS arrangements. The key question here is how much control companies want over the planning and execution processes.

TMS Outlook – Growth Drivers

Another question that comes up a lot looks at the underlying factors that are driving growth in the TMS market. First, TMS has a significant ROI. Planning & execution solutions can significantly reduce freight costs while improving service levels. In our most recent TMS ROI survey, average savings from implementing a TMS in the first year was 8 percent. While we have not done an ROI survey on fleet management solutions, our case studies also show better fleet utilization and service from these solutions.

E-commerce continues to grow at double digit rates, while traditional retail is growing at less than the rate of inflation. Fleet management solutions, when tightly integrated with an ecommerce site, help companies achieve promised delivery dates while minimizing costs. Planning & execution solutions include parcel solutions, which is widely used to support ecommerce.

Finally, SaaS solutions are driving tremendous growth in the market. These solutions require significantly lower upfront costs and is therefore less risky. This is leading to increased growth in sales to smaller shippers and carriers. The majority of TMS providers are making the move to SaaS deployments.

There are also a number of key trends that I recently highlighted in an article about trends to watch in the TMS market. Specifically, companies are keeping a keen eye on visibility tools, especially as it relates to providing more accurate ETAs. Artificial intelligence and machine learning are also becoming a core part of the TMS landscape, as companies try to learn about constraints that impact their transportation activities. And finally, IoT is gaining a lot of traction especially when it comes to manage assets on the move.

Final Thought

The TMS market is poised for growth for a variety of reasons. There are a number of key trends that are driving companies to explore TMS, such as the need to lower freight costs, lower freight spend requirements, and deciding on whether to outsource or bring the operations in-house. There are also a number of market drivers fueling the growth, such as the robust ROI associated with TMS, the expansion of e-commerce and omni-channel operations, and the surge in SaaS solutions. Suppliers will continue to monitor a number of trends that customers are interested in, including visibility solutions, artificial intelligence, and IoT.

Descartes Evolution 2019: Disruptive Technologies for the Customer Experience

Logistics Trends | By •

Descartes EvolutionI’m coming to you live from Naples, FL at the 2019 Descartes Evolution Conference. This was my third time attending the event and as always, it did not disappoint. This year marked the largest conference yet, with more than 650 attendees; in fact, it has outgrown its old location in West Palm Beach and from the looks of it, may need a bigger home next year. Yesterday’s sessions were about the big picture, while today’s sessions will allow me to listen to Descartes customers tell their stories. The big theme of yesterday was transforming the customer experience. I’ll have more at a later date on the customer case studies, but this article will focus on the big trends around supply chain management and their impact on the customer experience.

Descartes Global Logistics Network

During his keynote speech, Descartes CEO Ed Ryan discussed the foundation that is Descartes: the Global Logistics Network. The network connects carriers (ocean, air, ground, and rail transportation companies), shippers (retailers, manufacturers & distributors, and service providers), governments (customs agencies, regulatory bodies, and other agencies & associations), and intermediaries (customs brokers, freight brokers, forwarders/3PLs/NVOCCs, and payment agencies). Currently, Descartes has 20,000+ customers worldwide on the network, which processes 18.6+ billion transactions per year, and has grown 21 percent. On top of the network are Descartes’ value-added services: Routing, Mobile, & Telematics, Transportation Management, Customs and Regulatory Compliance, Broker & Forwarder Enterprise Systems, and Global Trade Content. These solutions all tie into the larger network.

Technology Trends

Ed Ryan also highlighted some of the emerging technology trends that are disrupting the supply chain industry. These are all trends that have been around in some form or another for a few years. Ryan pointed out that some of these applications are becoming mission critical for transforming both the supply chain and customer experience, while others are, in his opinion, not there yet.

For example, at the leading edge of transformation are the Internet of Things (IoT), Artificial Intelligence (AI), Cloud Computing, Information Security, and APIs. From a Descartes standpoint, IoT is a major driver. Ryan pointed out that IoT has become commonplace for most companies, especially at a base level (think Bluetooth headphones). From a TMS standpoint, IoT is all about tracking assets. Companies can use location data of their assets, whether that is a truck, ship, or even a specific container, to better serve their customers. A late or early truck means Descartes’ Route Planner can change the routes and inform customers of delays or a potential early arrival, which can help customers make more informed decisions.

AI is continuing to play a bigger role in helping customers make better and more targeted decisions. Two examples that Ryan gave were for the company’s routing solutions and MacroPoint. Within the routing solutions, AI has been used for years to determine how quickly a person can do their job. From a MacroPoint standpoint, AI is helping to give customers more accurate ETAs when a driver is still a few days away. They know how fast the driver drives, when he/she drives, and as he/she gets closer, the data will be better. For the customer, this is important as they need to know when the driver will arrive, so they know whether they need to keep a dock door open or schedule another truck to take that spot.

Cloud Computing, Information Security, and APIs are also becoming a bigger piece of the supply chain puzzle. As cloud computing is continuing to gain traction Descartes is moving more data to the cloud. While the company still operates their own data centers, more is being migrated to the cloud for scalability. In a session on technology, Ken Wood, Executive Vice President of Product Management at Descartes noted that cloud technology is becoming a fundamental technology enabler for the company. This adds a layer of security and accessibility.

Looking at the information security component, Ryan pointed out that companies today face hundreds or thousands of hacking attempts on a daily basis. As a result, Descartes has a full-time team dedicated to keeping its network safe from malicious activity. In the aforementioned technology session, Raimond Diederik, Executive Vice President of Product Management at Descartes noted that the full-time team is not an extension of IT. Instead, information security is in the forefront of their mind and is part of everything that Descartes does, including roadmaps, R&D, and corporate risk analysis.

APIs were the final technology trend Ryan pointed out. Before, when customers wanted to pull information and send it to their customers, it was done in the Descartes application which could cause integration issues. Now, the advancement of APIs allows customers to extract info and disseminate it to their customers in their own application.

Transforming the Customer Experience

I sat in on a session moderated by Chris JonesExecutive Vice President of Marketing & Services at Descartes, featuring Mark Parsons, Managing Director at BC Sands and Len James, CFO at John S. James Co. Chris Jones highlighted the 3 Rs of supply chain as developed by the late supply chain pioneer Donald Bowersox: Responsiveness, Reliability, and Relationship. Responsiveness is getting the customer; Reliability is keeping the customer; and Relationship is owning the customer. These all play a big part in the customer experience, especially as it relates to supply chain. Mark Parsons pointed out that retaining customers and getting new customers is the key to staying in business. To do this, you need that “WOW Factor.” And that comes down to not just delivering on your customer promise but going above and beyond. For BC Sands, this means sending notifications via SMS about the delivery status of an order. And if it is going to be late, getting ahead of the problem so customers can plan accordingly. As Parsons said, “the perception becomes that we have our s**t together, which keeps customers happy and coming back.”

Len James pointed out two major effects that have created ripples in the supply chain: the Amazon Effect and the Uber Effect. James said that “it used to be you can have things good, cheap, or fast; now you need to do all three. This is the Amazon Effect and it can take a toll on the business.” During a session on the vision for TMS, Brian Hodgson, Senior Vice President of Industry Solutions at Descartes expanded on the Amazon Effect. He asserted that Amazon is constantly innovating its delivery solutions. First there was free shipping, then Amazon Prime, then Prime Now, then big and bulky deliveries with set-up and installation, and finally, Prime Day, which allows customers to choose the day of the week they want all their packages bundled and delivered. This makes managing expectations and constantly delivering on-time more important. The Uber Effect is where everyone wants to know exactly where the truck is in real-time, and when it will arrive. Advanced visibility into trucks and containers becomes a core part of the supply chain.

Final Thoughts

Day one at Descartes Evolution did not disappoint. We have been covering disruptive technologies at Logistics Viewpoints, and it is always good to see the market take the same interest. Descartes CEO Ed Ryan pointed to a few significant technologies that are changing the supply chain landscape, notably IoT, AI, Cloud Computing, Information Security, and APIs. There are other trends that came up, but as Ryan indicated, he sees them as less impactful in the near-term, namely drones, autonomous trucks, and blockchain. However, he did go on to say that blockchain has its place and Descartes is running some pilots. But, from a digital ledger standpoint , especially for something like a bill of lading for example, it is simply too expensive and unnecessary from an encryption standpoint. And while autonomous trucks are still a ways off, the self-driving features will help trucks to be more safe in the next 10 years. From a technology standpoint, these trends are key drivers for transforming the customer experience. And as unlikely as it may sound, the supply chain may have the biggest impact on the overall customer experience. After all, if the customer doesn’t get what they want, when they want it, and how they want

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