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Technology in Transportation, Warehouse and eCommerce Services

logistics software

Technology in Transportation, Warehouse and eCommerce Services

Logistics is one of the oldest and largest industries in the world. The industry has becoming saturated with additional new companies each year, resulting prices becoming like commodity items, where Profit and Cost can be measured. We now live in a digital era in which platform business models like Uber, Amazon, and Airbnb have proven effective and disrupted traditional business model. Working on a platform enables each company to collaborate and cooperate with others to share resources and be more adaptable to future market demands. Airbnb, for example, does not need to buy property to run its rental business, and instead, they are able to collaborate and cooperate with existing real estate owners to become one global real estate rental ecosystem. 

The logistics industry, whose job as an Intermediate is next to be transformed into a platform business model. Shippers/consumers are able to place shipment on logistics platform, by passing conventional forwarders. The industry is still operating in linear-sequences and offline-environments, where each interaction and transaction need to be coordinated by human and paperwork documents that travel from one operation to the next. Currently, companies when serving its consumers are not directly connected and interacted to each other, there are too many delays in communication and response. As a result, operation, marketing and administration cost becomes expensive with low efficiency to fill unused resources.

The shifting age bracket of older to younger in population preferring technology platforms when shopping for their necessities has created a new variation of consumption and impacted new logistics service requirements. The business world has become online and logistics needs to be dynamic with creative services in providing digital requirements. New products introduction is now promoted via live streaming instead of paper publication, resulting product market trends to become shorter. The logistics company can no longer afford to work manually and independently to catch up to the fast-moving market requirements. 

Logistics business systems have always been operated in linear-and-sequential processes for ages. Each process needs to wait for a completion of prior operation with proof of paper document, making the industry become slow moving, un-productive with redundancy and unable to keep up with digital consumer. Sales needs to generate work orders to be reviewed by the supervisor before operation is able to start. An invoicing need to wait for delivery paperwork to return and be reviewed by the supervisor before billing can be processed and sent to its customers. Inventory level only can be recorded after warehouse operation returns paperwork to administration to be reviewed. It has too many unnecessary and overlapping manual procedures resulted operation cost becoming expensive and respond to customer inquiry and requirement becoming slow.

Under a single platform, it offers interconnected Domestic Land-International air transportation-eCommerce logistics-Warehouse services. Each logistics function has a standard operating procedure document, which is controlled by algorithms sent to the parties involved. The end-to-end workflow process is made easy and effective with integrated services and standardization digitize documents. To set up the process, information about incoming sales orders is automatically provided to sales and operations at the same time. Direct digital transmission of the finished operation document is made to the shipper for evaluation and the transporter accounting for billing preparation. Once the warehouse operator presses the finish button on their mobile device, the inventory level is updated automatically. 

With a proper set up where functions and services are interconnected enable domestic and international information distributed seamlessly from one operation to another in real time. For example, during export shipment customs handling operation at origin airport when documents and final weights are verified and cleared by customs, the algorithm will automatically send an online notification and email pre-alert of incoming documents to the transporter at destination for them to download via email or online download menu with reference to work order number. 

Transporter-at-destination can immediately begin pre-customs procedures to expedite shipment clearance at the airport prior to shipment arrival. With real-time response, it reduces shipment delays and unnecessary extra expenditures at destination. When a shipment is cleared by customs, an algorithm distributes information automatically to assign driver mobile devices with detailed shipment to pick up and delivery route to consignee final address. 

The way we used to work with human and paper resources will not carry us to the next era. Updating the schedule of fleet rotation, pricing scheme, counting load level of incoming shipment into vehicle using excel format and paper are no longer sufficient. The final report takes longer because we have to repeatedly redo-and-review numbers and documents. 

The Covid-19 pandemic not only led to global lockdowns, halted commercial activities, but our social and business life suffered for more than two years. Many new regulations and workforces were implemented that were difficult to adapt and created more expenses to our daily life. Now, we are gradually ready to travel and explore the world again. Many countries are open, airplanes are now flying, and the tourism and trades industries are now in revival mode. World countries are busy preparing and accepting incoming tourists. Example, Thailand, a country which generated more than 12% of GDP from tourism, now allows visitors to come by Air, Rail and Ocean without any covid checked. Travelers besides sightseeing and to relax, they also spend money to buy souvenirs to bring back home for loved ones, or to re-sell products in their home country at eCommerce sites.

We all recognize difficulties to bring parcel from foreign country back home, beside needing to pay extra charges of baggage overweight to airline, traveler/shipper needs to pay duty and taxes in their home country. Even worse, some travelers who don’t understand their home country’s customs regulations end up paying a penalty or items that need to be destroyed. It is a big challenge to even business/individuals who resell products at ecommerce sites. How do they buy a repeat order or buy newer items? Do they keep flying back and forth to purchase and hand carry products to their home country? 

With more people now buying products online, eCommerce transactions are expected to grow at a higher rate than traditional brick and mortar transactions. People in the US or Europe who frequently search and shop for products made from other countries can instead buy products directly from where it is made, compare prices, make a purchase and tell a platform where to pick up and send to their home address. This is a new level of shopping experience with online eCommerce logistics that follow a moving market trend. 

Currently more than 64% people are connected to internet with majority via smart phones to a world-wide-web. The large share of businesses and households owning computers in developed countries has exceeded 80% along with more than six billion smartphone users worldwide. Furthermore, in each country, tens of thousands of independent logistics companies and millions of SME (Small and Medium Enterprise) consumer shippers have presented a platform business model with an adequate quantity of potential users.  

Working with an algorithm is like operating with a machine that operates continuously and produces results that are quicker, more accurate, and more productivity than human’s capabilities. The logistics industry sector with its linear and off-line business methods needs to transform manual, paper-based, and offline business procedures. Technology and algorithm have changed every aspect of our business and social life. Those who know how to Create-Design-Execute digital innovation, transform manual-to-become-autonomous, with limited human interference, are the ones who will become a winner in their industry. Written by: Eddy Syaifulah, is a founder of technology company.

              

 

arrive circle logistics tag documents food circle redwood

Time to Transform, is Now

The logistics industry is at a crossroads to either transform or to hold off acceleration. Companies should no longer hope that the old style of “Favors and Handshakes behind closed doors” in order to keep a business strong through these challenging times to continue.

The impacts from the pandemic and the war initiated by Russia on Ukraine had accelerated the slowing of the industry. Trade between countries continues to slow down immensely. Independent logistics companies need to start their own digitalization/process-automation transformations before it becomes too late to catch up with the evolution of the industry.

The way that a conventional company operates during the off hours has diminished the worker’s willingness to adapt to a digital working environment. Companies need to respond quickly to re-train their workforce in order to understand that emerging technological skills and tools are required to become more efficient, responsive and competitive against competitors with more resources. 

One of the critical problems that independent logistics companies face is relying too much on the manual workforce and the use of paper to run their operations, customer service, sales and marketing. As a result, each given task becomes slow and expensive. It requires time to give instruction and supervision which adds into the customers’ end cost.

Another challenging and difficult job is to figure out how to expand sales outside the home country. It takes time and money to find and to know new partners to work with. Most find an easier networking-route or participate as members of a Domestic or International Association. However, working with un-familiar company owners can create new delays in operation and conflicts of potential sales orders. 

Working in an off-line environment is still valid, however it is going to be difficult to out-bid against competitors who have an integrated business model. Most current companies are 2nd generation owners, with an inherited or purchased business that needs to immediately identify the right tools for the company to adopt in order to survive and prepare for more difficult times.

The technology world has evolved drastically. With the ability to automatically download digitized documents from anywhere with mobile devices, it has helped businesses better manage their distribution of resources and makes it easier to alternate the rotation of drivers and vehicles to arrange work schedules and to reduce bottlenecks of waiting for instruction. Drivers can download tasks directly into their mobile device instead of getting instructions directly from a supervisor, limiting overlapping job functions. 

Another key area that must be improved and integrated is the Customs Procedures, to inform shippers of import-export rules and regulations. Shippers should be alerted of shipment restrictions or documents requirements to import-export before proceeding to ship. Many shippers are caught after shipments have arrived in their destination country. Shippers have to pay excessive duty and penalty because of incomplete customs clearance documents and have to pay additional warehouse charges due to exceeded allowance storage days at seaport or airport-warehouses.

With better technology integration, shippers can enter their products HS/Customs-Code and the system will immediately advise about documents needed by customs at the origin and destination countries. Drivers will then be able to get clear instructions when picking up a shipment that requires additional documents such as: MSDS, Quarantine, Health certificate, etc. needed to be picked up together to speed up the customs process.

Rebalancing the logistics industry into a digital or platform business model requires a thorough coordination by technology developers to Digitize information and make it easier to store and share transmitted data.

We need to transform the conventional logistics information system to improve the trade-supply chain networks. With Digitalization of logistics functions, Operations, Customer service, Administration, Sales and Marketing become auto responsive in distributing information to the right person at the right time to improve decision making. The accelerated growth of Global and Regional market will require each one of us to respond not tomorrow, but today. 

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Logistics in E-Commerce Environment

The innovation of mobile technology allows more individuals to participate in global ecommerce markets.

Any individual with a smartphone, regardless of location, can become a buyer or seller with a few clicks. The widespread existence of ecommerce transactions resulted in an increase in transportation and logistics services. Business and individual who shop online/ecommerce are able to access online products across Asia,
Europe and USA.

Ecommerce consumers who shopped online have shifted to new demands such as to drop shipment into third party logistics provider, instant delivery direct to consumer house, and the capability to have an online tracking. These new requirements have forced independent logistics companies to speed up, adapt and invest in new technologies if they do not want to be left behind.

Most online shoppers like to browse before making a purchase decision. Spending hours searching from one site to another to compare quality, style and price is a common consumer behavior. Shoppers also like to share stories of what they found with friends on social media platform to compare notes with friends. Many
products vary in price, style and quality from country to country, which creates a good opportunity for shopper/traveler to buy and re-sell in their home country. However, most shoppers lack of understanding of shipping processes, rules and regulations of import duties, and taxes that must be paid on certain import value products.

On many occasions, shoppers are drawn to use an unqualified logistics network delayed or cancelled shipments or overcharging shipping fees or an illegal network that make products become illegal to resell in home country.

With an estimated global ecommerce 2.15 total transactions with total sales revenue of 4.9 trillion in 2021, and expected to reach 7.4 trillion USD in 2025 (Statista), it is vital for logistics companies to think about how to serve ecommerce environment. If you are an owner of a company that has not served this market, long term planning to include ecommerce markets will help increase business and better prepare an integrated service. At origin, service should include: pick up shipment, consolidation staging area and air freight rate. A company at destination who receive shipment should have online customs clearance and delivery capability to the final destination address. Another important ecommerce factor is to participate on logistics platform to allow shopper/shipper to communicate and to interact directly with logistics company.

The process of receiving an ecommerce product from another country requires many steps. Once a shopper has finished shopping on an ecommerce site and has entered new shipment detail information in logistics platform with detail instruction how to pick up its shipment. The platform will trigger a customs procedures
menu to analyze each order information to prevent being delayed or rejected at destination during customs clearance. The platform will then display available companies at origin and destination for the shipper to select. Company at origin and destination should accept new orders before invoice is generated automatically to shipper. Once payment is made and receipt is uploaded, company at origin will start to work on the shipment schedule and consolidate by each selected area or country to minimize operation cost and better allocation of resources. Once company at origin finishes their customs handling, documents should be uploaded automatically to company at destination. Company will then able to pre-arrange customs clearance process and prepare schedule to deliver to final consignee address.

Internet and technology innovation will continue to advance due to demand, and consequently, transportation and logistics services will have to respond by keeping up. Every paper has become digital document, and every job function is processed and run by an algorithm to become faster, more efficient and require less human involvement/automation. The world of independent company is becoming more difficult to operate and those that do not follow a digital process are either left behind or have to close their business
doors. Transformation into new digital eco-system is not an overnight result nor an easy to do, however, it is something that we all must do to build value of our business services and a long term sustainable partnership.

Written by: Eddy Syaifulah of Mahyu LLC.

integrate logistics automation freight

The emergence of logistics platform

Since the start of the pandemic in early 2020, the logistics supply chain industry began to experience difficulties. Due to the air traveler restrictions in most countries, air transport was the first to reduce their normal scheduled flights which disrupt air transport shipments. Then, ocean transport experienced its own set of problems; vessels had to berth longer out of the ocean since ports were operating at half capacity because of the alternating work schedule of its workers. Problems worsened with an increased demand of containers capacity by Asian manufacturers due to an explosive demand by e-commerce. As a result, ocean liners were not quick enough to return empty containers back to Asia, which created a supply chain backlog and a price increase to the industry.

The International Trans-Pacific Ocean freight charges significantly increased over the last two years. For example, the cost of moving shipment from South East Asia regions cost $3,000 USD/container to the US. It gradually increased every other month and reached $11,000 USD/container by December of 2020, an increase of more than 300% in over a year. The cost reached $16,000 to (US-West Cost) and $19,000 to (US-East Coast) in main ports by December 2021. An inland transport to the final destination, for example, Atlanta, costs $26,000/container. Imagine, a container that has 1,000 items from Asia to the US with a transport cost of $3.00 had become $26.00/ item. It is why inflation has been unusually high.


 

The logistics company (transporter) has been operating an offline business method for decades. Operating business in an offline environment makes operation and administration slow, expensive and non-transparent. Quotations given by transporters listed too many itemized charges, making it difficult for shippers to analyze. Charges at origin and destination varies among transporters. Shippers who want to get five quotations must make inquiries to five different local transporters, requiring about 2-3 days for one quotation to be delivered. Companies using an offline business method lack efficiency and are far behind those who have adapted to technology. We are now living in an online world where platform news, social communication and shopping is done in an instant, and businesses should use a technology platform to its advantage.

Shippers who participate in Logistics Platform would be able to analyze available transporters at Origin and at Destination. Logistics service information is properly displayed and all questions can be answered directly by transporters with the chat feature in the platform. With just a few clicks, shippers will be able to confirm shipments to transporters with transparent detailed services: pricing, schedules, document requirements at origin and at destination. Once the shipment is accepted by transporters, work-order and reminder note are issued by the platform to alert everyone involved. A shipper that paid $26,000 from Jakarta to Atlanta in an offline environment, would only pay $22,500/container in platform business model.

Internet technology is an important factor in our daily lives. The relationship between transporters and their shippers is now more interactive with direct communication. A platform with its embedded algorithm into digitalization would speed up and minimize transporter manual operation and paper administration. The status of delivery in Bangkok can be instantly viewed by the Shipper in Amsterdam. The identity of the truck and driver is available for shippers in Tokyo to track before shipment is released. Digital Proof of delivery in Los Angles is transmitted to the transporter in San Francisco to speed up invoicing and confirmation of acceptance by Shipper. Warehouse space becomes easily searchable with the selection of available warehouse operators where the platform operates. Decision-making is faster with less human involvement and operation becomes simpler.

We are now able to do almost everything using our smartphone, and it has become our identity and trusted 24/7 companion. Any individual with a smartphone can create products and sell online from every corner in the world. There are now more individuals who have joined Global Digital Market as either Buyer or Seller, driving the demand of logistics services. A platform that fits into the Business-Consumer trend will open up new channels and bridge the transition from traditional systems would attract many followers. The integration of the Logistics Industry with Internet Technology will be beneficial for all parties involved. With no barriers, shippers in Jakarta able to make a seamless transaction to select transporter at Jakarta and at Atlanta via smartphone or computer in just a few clicks. Companies that fail to catch up with Digitalization and Automation will lose out their Development Growth to connect the Online World, which demands direct interaction, competitive pricing and consolidated services.

logistics

How an Algorithm is Blended in Logistics Industry

Long before the current pandemic ever existed, the nature of global business environments had already drastically changed. Many traditional business methods had been replaced with online platforms, which were more cost-effective, flexible, and efficient.

The many advancements and changes from conducting real time-digital business transactions and more regional and global e-commerce businesses led to a higher demand for logistics services. The traditional logistics offline business model will need a transformation into real time-online business transactions in order to catch up with a global digital business model. Most logistics companies (Transporters) work independently to employ their own sales, operations, finance, and marketing staff. As a result, companies are unproductive, disconcerted, have difficulties adapting to the current trends, and fail to find better business opportunities.

During my time serving the industry, I found my work schedule inefficient, with so much time being wasted waiting for price quotations from other agents or waiting for reports to issue invoice billing. The bottleneck in the logistics industry has always been the “long wait time,” which is one of the most expensive operation costs being added to shippers. For example, when our sales department receives a new work order, they need to prepare detailed instructions, reviewed and initialed by supervisor. The operation needs to wait for order instruction before operation work can be started.

Accounting is also facing the same waiting time before being able to issue the final invoice. Although the operation is finished, paperwork is still with the operation’s personnel who is only able to return documents by day’s end or tomorrow morning.

The logistics industry needs to implement a technology platform with centralized functions of operation infrastructures, financial, sales-marketing, administration. Technology with its algorithm is able to analyze business information and auto deliver information directly to other nearby companies, allowing greater flexibility and better decision making. With a self-configured algorithm, each company is able to receive collaboration and cooperation notifications of “sales opportunity or sharing space availability”, which each company can share with their consumers.

With a technology algorithm, digital logistics information is integrated, communicated, and distributed to the shipper without delay. The slow process of waiting for documents or waiting on instruction before work can be started will no longer exist. Shippers and logistics companies (Transporter) can easily review, evaluate and make a selection in real-time. Detailed digitized service requirements of schedules, location pickup and delivery, pricing structures, and other charges are automatically displayed in real-time before the shipper makes final confirmation. This will provide a new business solution that provides logistics service transparency and trust to all logistics users.

The question is, what will it take for the logistics industry to transform its offline business method into a real-time technology platform? There are complicated logistics variables that should be carefully managed properly by a developer, such as customs, financial and transportation where local regulation is varied from one country to the other. I am optimistic there will be a company that has deep knowledge in logistics and technology infrastructures able to design, develop and deliver a fresh solution to this giant industry, where each marketing-sales-operation-customer service, finance, and administration information are delivered to Shipper and Transporter without delay.

Our world is beginning to work more favorably toward a modern digital lifestyle which is simpler and more efficient than our grandfather’s times.

digital logistics

The Arrival of Digital Logistics

Consumers turned digital before manufacturers and distributors, including those in the logistics industry. It may be hard for companies to keep up with the constant changes and technological advancements. Cloud technology is a solution for companies to stay up to date, helping the traditional logistics industry to become a “virtual logistics industry.”

New technology changes many aspects of how a logistics business operates, brings new market entrances, brings in new customers, and manages new partner expectations, which consequently triggers new business models. Traditional methods of running logistics need to be revamped to become digitized and more transparent among partners. Operations need to be adjusted where documents accompany one shipment and if one document is missing, a shipment can be delayed sitting idle for days.

The logistics market, with an estimate approaching US$ 6.6 trillion dollars, is at stake. Logistics companies cannot afford to sit back and watch, they have to be proactive to new technology innovation. New technology will target digitization and most of logistics functions and its administration, such as automated scheduling, consolidation of pick up and deliveries from multiple shippers, auto instruction to the right warehouse operator to pick up certain items, automate marketing functions to look for cargo on return trips, deliver auto work order to driver, auto-generated issue invoice to customers, and more. With the help of technology in logistics services, a new approach in collaboration among partners is essential as it will provide capacity fulfillment to reduce much-needed operation costs.

 An adaptation of real-time digitization and data automation under one platform will give access for independent companies to participate in a technological economic era. It is estimated 535,000 distribution centers scattered in the US operate as standalone independent companies. Now, imagine if 5-7 percent of them are willing to collaborate with sales and customer services references under one logistics platform. Each company and its customers will gain efficiency, productivity, and faster workflows.

The environment of traditional logistics businesses that once took days to finalize is now being reduced by the real-time technology digitization revolution with simple real-time clicks. Technology provides an opportunity for many people in isolated areas to participate in new economic and technological ways of living.

The environment of business is becoming fundamentally altered by globalization, and followed by recent pandemic that have devasted most traditional business prospects. Our strategic decision to stay competitive and to operate much more efficiently has to be based on these contexts. Logistics companies face a lack of coordination and collaboration between or among effective partners for some time, resulting in a decrease in overall efficiency and a higher operating cost on different systems. An improvement of sharing real-time information in cloud platform among active logistics partners is one of the key elements in improving collaboration and cooperation, including an increase in the bottom line.

logistics

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.

logistics

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.