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Technological Advancement in the Logistics Industry

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Technological Advancement in the Logistics Industry

In the last ten years, the rise of over 3.5 billion registered users participating in global e-commerce has occurred. The ease and openness of the e-commerce industry allow individuals and businesses to participate in domestic and international e-commerce trade platform, giving each country the opportunity to scale up its workforce and revenue collection. With the help of technological advances, products are now being introduced by the Internet through social media, live streaming, and many more avenues, rather than the traditional sales marketing and advertising methods. The growth of e-commerce has also affected the logistics infrastructure requirements and needs.

Logistics company owners are left with a variety of problems due to the ever-changing e-commerce world, including proper storage, competitive pricing, quick delivery, and fluctuating quantities and unpredictable changes. Though most are eager to find a solution, many have yet to realize that the solution requires full technology integration. Consistent system maintenance and development, integrating sales, operations, administration, and financial functions, connecting and configuring a variety of endpoints, protection from cyber-attacks, and many other functions are essential to creating a cost-effective and productive company during the internet era. With a complexity of technology system operations, it is best for companies to partner with a trusted technology company in developing a logistics platform that will deliver multiple benefits and develop long-term commercial ties.

The availability of a technology platform that works without geographical boundaries will have a huge impact on e-commerce and logistics users because they will be able to collaborate and cooperate with each other under one platform on every computer and smartphone device. Each user in real-time is able to list detailed logistics requirements and services to include pricing schemes, transportation schedules, warehouse spaces, detailed information operations, and others. Additionally, a working relationship with only particular companies and owning branch offices, warehouses, and vehicles in other countries should be transitioned into more transparent cooperation with local companies. Being able to share resources with trusted local companies will give advantages in speeding up operation processes and minimize cost while reducing investment risks.

Internet commerce trade will reach global sales of 17.5 percent in 2021 with a compound annual rate of 15 percent. As a result, many countries have introduced new regulations for e-commerce items that have created confusion and problems for many companies. These e-commerce regulations are overlapping with non-e-commerce items, resulting in a delay in clearance. In addition, when the pandemic lockdown period is lifted, we will see an increase of international and regional trades with the rise of conflict as a result of slow information distribution, causing delays and missed delivery dates.

We are at a point that it is almost impossible for companies to function properly without technological help in recalling HS code numbers, custom tax code, restriction and document requirements, operation notification and monitoring, and many others. With the availability of a real-time crowd sharing platform that is accessible for users, business and logistics transactions are a click away to finalize. Companies should prepare to meet unprecedented regional and international unexpected trades challenge in the internet era, nothing has ever flourished entirely alone: the logistics industry needs an advanced technological integration platform to flourish in the e-commerce era.

 

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Eddy Syaifulah is the head of Mahyu LLC.

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Logistics in the eCommerce-Era

Plans of business expansions and holiday vacations have been shattered and ruined by the pandemic. Memories of Christmas dinner and going to the local store without precautions are engrained in our minds. The world’s behavior has shifted to adapt to the consequences of a pandemic.

Many people are experiencing losses in business, losing employment and many other effects. The global ecommerce has over 3.5 billion registered users in 2020, providing many companies to grow in a new business concept without the brick and mortar store, and additional office workers. Ecommerce business has allowed supporting businesses to grow, in particular, the logistics industry.

As one of the oldest and largest industries, logistics is predominantly owned and operated by the older generation who has operated businesses with the same routine and procedures. Many logistics companies are still practicing the traditional method of doing business, with back and forth communication to negotiate and coordinate detailed requirements. However, consumers in ecommerce era are now demanding faster decision-making and transparency. With the right technological solution to handle multiple procedures, many important tasks such as administration, operations coordination, financial background check and verification, etc. can now be handled by complex computation algorithms instead of humans.

Companies can reduce miscommunication, mishandling, minimize delinquent accounts and improve response of customer service levels by creating a logistics technology that can perform job functions, such as Customs Clearance Procedures, Sales-Marketing Cross Promotion, Driver Instruction, and Operation Procedures, Warehouse and Airline Operation Procedures, Invoice and payment reminder, and others. With one platform, all of these features to help companies consolidate all logistics functions in one place.

The logistics industry involves many various parties in running its operation such as Shipper, Domestic and International Transport, Consignee, Customs officers, Warehouse Personnel, Accounting and others. This is a full operation which needs to be administered and monitored in order to be executed properly. With the help of technology algorithm, multiple information will be able to be distributed and delivered to the right operator’s smartphone device and will speed up notifications, operations, and processes.

Another key feature is the Face/Vehicle identification processes, allowing convenience to Shippers and Transporters to better monitor pick-up and drop-offs of shipments. With integrated technology features, the logistics industry will see improved service levels and the benefits of transparent cost structures to each transaction.

The pandemic has accelerated the pace of logistics digital transformation. Many new changes are seen as a result of the world crisis, including an increase in ecommerce businesses, remote work, online mobile orders and deliveries, and other changes. In order to survive as a business that has shifted away from traditional concepts, it is important to minimize costs and make smart decisions.

For the logistics industry, most infrastructure job functions and operation administration tasks can be performed through a smart algorithm platform. With an all-in-one platform, information can be accessed on mobile devices or desktops and is available on all operating systems. Logistics in technology platforms will allow better communication, organization, transparency, and companies will benefit by being more cost-efficient, connected, and productive.

The World Moving Forward

At the beginning of 2020, the world was upended with changes to its economics and social life by the arrival of COVID-19 – a virus that spread to countries like wild-fire that most were unprepared for. Fear and confusion led the way. Just like the early 2000s during the early stages of e-commerce, many of us stood still and watched certain industries use e-commerce to generate business and eat away at the expense of more traditional companies.

COVID-19 drastically changed the directions of normal activities. Social meetings, shopping habits, and business settings have now been reduced to online platforms. People are now forced to understand the role that internet technology will play in daily life.  Larger numbers of people working and shopping from home than ever before. There is so much difference in activities such as buying hot food or buying canned food from an online store. As a result, two key industries are expected to be extremely important aspects in supporting future daily life for many years to come: express last-mile delivery and logistics supply chain.

Express last-mile delivery has really been an important industry that we all have come to rely greatly upon lately. They deliver our hot-food order and all of our anticipated goods, sometimes even arriving at our front doors in less than an hour while the logistics business is taking a back doors approach in supplying a necessity to increase the productivity of many industries. Many independent logistics companies also help move a country’s raw materials, semi-finished goods, and finished goods into the domestic and international markets. This industry plays a key role in increasing the competitive power of corporations and revitalizing improvements in a country’s economics scales. However, competition in the logistics industry is extremely high. For it to survive and provide better services, companies should seek to consolidate and migrate their data into a cloud computing platform service.

With the adaptations into a cloud logistics platform, the traditional logistics roles can begin to expand, minimizing office and operating expenses, and reducing business risks. Imagine the number of logistics companies who have committed blocks of space to transporters but end up being unable to fulfill 12-24 hours before departure or a shipper who is looking to move shipments on a weekend due to a critical shortage in one of their key customers.

There are high penalty prices to be absorbed by all parties when shipment capacity is unable to be fulfilled due to a lack of communication and coordination among the companies. These unnecessary risks and wastes of business opportunities can be minimized if the information was cleverly integrated-communicated-distributed to its partners in a cloud logistics platform.

New trade and logistics solutions running through a cloud platform have begun with 4 billion smartphone global users. The notion for a business to have only one dedicated trade or logistics partner serving them for many years will need to be re-adjusted in order to provide transparency and better monitoring systems. People and business communities are now demanding convenience in purchasing items from their comfortable homes rather than calling to place an order. We are surrounded by technological inventions all around, created for the benefit of people, to improve our life by increasing productivity and efficiency. With 5G not too far away at a connection 100 times speedier than 4G, our social and business lives will be impacted even furthermore.

Almost all businesses will eventually need to operate on a cloud technology platform to make operations and decision making much more efficient. When trade and logistics are blended into a cloud technology platform, magical moments will definitely happen, with industries moving together with the same interest, we are seeing new ways of getting the job done.