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The Role of Telematics Solutions in Global Supply Chain Management

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The Role of Telematics Solutions in Global Supply Chain Management

Today, the logistics industry is expanding at a fast pace. As global trends and strategies grow, so does the tendency to conquer new markets and use innovative technology. However, it is also vital to understand that, with this rapid expansion, the complexity of processes in the logistics industry reaches new heights. Consequently, more advanced solutions are needed. One of the branches that excel at improving the organization and operation sectors of logistics is telematics. The role of telematics solutions in global supply chain management lies in simplifying all processes and providing answers for the growing industry’s complex demands.

Telematics tip the scale in favor of logistics companies in the current market

One of the obstacles to managing vehicle usage in logistics and the supply chain was that there were no options to track information like vehicle location and activity, engine diagnostics, and driver behavior. With the development of telematics technology, this problem has been solved. Telematics allows you to gather all this wide range of information on a single platform and visualize the entire picture of one vehicle or an entire fleet. Consequently, fleet operators have a full grasp of the entire operation, and they will be able to manage resources better.

With the global pandemic still on the loose, logistics companies worldwide are fighting for dominion and re-shaping the supply chain in the process. To be successful among strong competitors, it is crucial to use modern tools and approaches. The correct use of telematics solutions will tip the scale in favor of those who use it. Let’s learn more about it to see how.

Improving time management becomes a crucial factor

One of the best features of telematics solutions in global supply chain management is optimizing processes, substantially reducing the time needed to complete various logistics activities. Consequently, flexibility within the supply chain increases, making it possible to minimize delays. Since time is everything in this industry, it becomes obvious why companies invest money into getting the latest telematics equipment.

How telematics affect the sustainability factors in the global supply chain?

With the increased use of vehicles for transport, it is getting harder to control the damage caused by gasoline fumes. The additional benefit of telematics is that it reduces the negative impact of transportation processes on the environment. The feature that allows you to optimize delivery routes will, in the long run, substantially reduce the use of gasoline, resulting in less pollution and less damage to the environment. With such wide use, it touches all the critical areas of the logistics industry and strengthens the global supply chain management.

IoT in conjunction with telematics

The Internet of Things is connecting the entire world in ways that were unimaginable just 10 to 20 years ago. A question presents itself; what will the next 20 years bring to the table?

IoT is a powerful tool that communicates with other solutions like telematics and helps them reach the peak of their performance capabilities.

The way in which this “partnership” improves global supply chain management can also be seen in its monitoring and tracking features. It is possible to precisely track vehicles and monitor a wide area of business networks. The warehousing and logistics departments have a transparent view of receiving and delivering operations, consequently eliminating blind spots in all processes.

Improving business efficiency while lowering operating costs

Improving business efficiency and reducing operating costs is greatly improved with the use of Fleet Telematics and other intelligent tools.

The idea is to transform big chunks of data into usable information. Whether you want to guide the forklift as it unloads packages in and out of the warehouse or use the system to keep track of goods delivery or real-time shipping schedules, telematics delivers at all times.

 

The safety of your employees is your primary concern

Speaking of how telematics influences all areas of the supply chain, we must touch on employee safety as well. We mentioned earlier how telematics measures vehicle usage and driver behavior and sends that data to the operators. By monitoring the speed of the vehicle, hard brakes, swerves, and a wide range of road conditions, it allows a full analysis of the driving.

With the addition of a dashcam, you can get a full report of the road and the driver backed up with images. Knowing this information will help prevent accidents and protect both the driver and the other vehicles in the traffic, and, in turn, lead to saving money.

Customs reports and dashboards

Working in logistics means having contact with customs. Sending and receiving goods every day requires a lot of paperwork, as well as special rules and regulations depending on the nature of the goods.

Telematics solutions in global supply chain management offer improved customizable reports and dashboards for easier tracking and full insight into the nitty-gritty of the customs processes.

An overview of the global supply chain management features

With telematics solutions behind the wheels, global supply chain management gets access to unique features, like vehicle administration, ad-hoc data analysis, NRU and RMA program management, safety program, and much more.

It is a unified platform that combines planning and execution, creating synergy in business operations.

Protecting the future of the global supply chain

The consequences of COVID-19 on the logistics industry are still not showing their real face. However, that does not mean a new threat cannot appear at any time.

Complete transparency of operations increases overall security in all areas of logistics. This allows for the entire industry to prepare for future disruptions of the supply chain network.

The idea of implementing advanced solutions is not only to manage processes but also to protect the industry from any possible disasters that could seriously hinder its operations and affect customer satisfaction.

Going beyond telematics – the future of the global supply chain industry

To quickly jump back, no one knows with certainty what will the next 20 years bring with telematics’ development. However, there are some ideas and projects worth investing in. We are slowly moving towards the future of autonomous vehicles that do the “driving” while the driver prepares delivery documentation, works on customer communication, invoicing, and much more. The vehicle is connected to the environment at all times, using sensors that send information about road conditions, communicate with traffic systems, and all that without any human interaction.

The global supply chain management will flourish in these conditions, allowing complete automation of all systems through telematics. It sounds like a futuristic sci-fi movie, but countries like France and Germany are already implementing some starting forms of these management systems.

It is safe to say that the future of telematics opens many doors. It is yet to be seen how soon this change will happen, but progress is imminent.

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Austin Dillon is a freelance writer interested in all topics surrounding international trade and shipping. With 3 years of experience writing about the global supply chain, he has gained valuable insights into the field. When he is not working, Austin loves watching old Hollywood movies.

logistics industry

Trends that will Reshape the Logistics Industry

No industry exists in a vacuum. Everything is interconnected and hinges on each other. The same is true of the logistics industry. The trends that will reshape the logistics industry are mostly trends that have to do with other industries that function together with logistics.

Experts believe that technological, business and social trends are going to drive the disruptions that will be felt in the logistics industry. For some, these changes will be long overdue.

From social trends like sustainability, over the changes felt in business with the rise of e-commerce, to the multiple changes the advancement of technology will allow, the logistics industry is set to undergo massive changes in the next couple of years. Let’s take a look at what we can expect.

Business Trends

E-commerce logistics and supply chains are what have most consistently been reshaping the logistics industry. What has been most influential are the customers’ expectations. Not only do customers expect to get their goods faster, but also at a low delivery cost. Not only that, but manufacturing is becoming more and more customized, which is making things all the more complicated for the logistics industry. These are the key business trends that are impacting logistics in 2020.

Last-mile Deliveries

With the advent of Amazon Prime, customers have grown to expect much faster delivery times. Companies like Amazon and Walmart provide services that offer same-day or 48-hour deliveries for less money than their competitors, sometimes even for free. This will lead to manufacturers, distributors, and logistics professionals needing to find strategies to offer shorter turnaround times on last-mile deliveries. In practice, shippers will begin focusing on what is called just-in-time delivery (JIT). JIT delivery means inbound freight arrives at the warehouse just in time for shipment in order to shorten the delivery time. This, in turn, will lead to the lowering of warehouse costs as well as carrying costs.

Localizing Warehouses

In order for JIT to work, companies will have to move warehouses closer to the consumers. Instead of having several major distribution centers, companies will look at having more smaller warehouse options throughout their market. The location of these will be determined by the frequency of orders in different areas.

Social Trends

For the most part, the social trends that will impact the future of the logistics industry are urbanization and sustainability. Increased urbanization is making it much harder to manage logistics and is making everything far more unpredictable. It also creates the demand for smaller commercial vehicles doing the deliveries. On the other hand, delivery trucks often add to pollution and traffic jams in a city setting.

This leads us to the second social trend aiming to impact the industry – sustainability. Doing deliveries cities with dense populations is getting harder and harder to manage sustainably. On top of this, there are stricter and stricter emission regulations. For example, freight-carrying ships have long been under fire for the amount of crude oil emissions. The limit for sulfur in fuel oil has been reduced starting with January 1, 2020, to 0.50% m/m (mass by mass). In addition to this, companies have been under constant pressure to adopt different green initiatives on the corporate level. All of this will force changes when it comes to logistics.

Technological Trends

Regardless of what happens in business or society, technological advances are the main and most numerous trends that will reshape the logistics industry.

Autonomous vehicles will provide great safety benefits at the fraction of the cost. Platooning technologies that link two or more trucks in convoy will provide greater fuel efficiency. Another technology that will also help with sustainability is the increased use of electric or hybrid trucks for deliveries and transportation.

Customer-facing APIs

These softwares are there to provide customers with information about where their parcel is at any time. This makes the customer feel in control of the purchase and, more importantly, makes them more likely to return. Reaching out to customers via email or text to let them know what stage their delivery is at is a simple way to keep them in the loop.

This kind of technology is also not only for customers. Advances in this field can help you keep track of your freight shipments, which can be invaluable especially if they are late.

AI and Big Data

Artificial intelligence and big data are the advances that are most likely to change the logistics industry. Analytics and AI will allow for better and faster decision making when it comes to logistics. They will enable automated scheduling as well as route and volume planning.

Drones and Robotics

Even though they are currently not very common in warehouses spaces, the awareness of the need for robotics is increasing every day. Currently, only around 5 percent of warehouses have employed this technology. It is certain, however, that this is the trend that is definitely here to stay. Its benefits are many, including solving the problem of the low labor availability for these jobs.

Drones have similarly been treated as too futuristic. However, an increasing number of companies are using them for their quick deliveries, especially in densely populated areas.

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Sebastian Miller has worked for statetostatemove.com for 4 years now. Working with a company specializing in all types of moves, from residential to corporate, for many generations has provided him with a rare all-encompassing glimpse into the moving industry. He lives and works in Dallas, TX.