Over 140 billion dollars is currently blocked because of conflicts and lawsuits in the logistics industry. Absurd bureaucracy, tons of documents, and invalid transparency – these are the other pain points of the sector. Is there a way to get rid of them and introduce logistics to a new, better reality? Let’s explore data – sharing technology – the future of logistics.
Have you seen the video showing how robots move the entire shelves packed with goods in a smart Alibaba’s warehouse? This clip published by Tech Insider shows us perfectly how technology can accelerate the whole process of posting, and shipping packages. Jack Ma is a visionary, so it’s not surprising to see bots taking over the hard labor on the world’s largest retailer’s premises, but it also pictures where the whole logistics industry is heading. Let’s start with one major buzzword.
Data is the new oil
Above subheadline is a quote heard during this year’s infoShare conference held in Gdańsk. This ain’t just a hype. A quick glance at the below infographics ensures how serious it is.
What does it mean for logistics? In a nutshell, the collaboration between the key players in the sector – manufacturers, suppliers, logistics third-party companies, carriers, warehouses and so on – relies on data and data analytics. Quoting after the „Shifting patterns” white paper delivered by PWC: „There is no other industry where so many industry experts ascribe a high importance to data and analytics in the next five years than transportation and logistics – 90% in T&L compared to an average of 83%. The sector has never had access to more data”.
However, there are still many problems in the industry, and most of them are connected to tech-resistant nature of organizations. What’s missing here is the lack of digital culture and proper training for management and employees. That’s definitely slowing them down. How data – sharing technology can skyrocket their businesses?
9 reasons why logistics companies should embrace blockchain and data – sharing
- Fair cooperation – blockchain can enable the new quality of transparency during a collaboration between different companies.
- Boosting companies’ performance – by sharing data with business partners, companies can be more flexible when it comes making vital decisions, and that leads them to increased efficiency.
- Fighting the bureaucracy – overproducing documents should be left in the past once and for all. Unfortunately, many organizations still fetishize the idea of having multiple forms and sheets. It takes time, money, and tons of paper each year. It’s absurd! Thanks to the blockchain, there are less paper-based documents and data transfer can move to the cloud.
- Safer and faster transactions – as we mentioned earlier, over 140 billion dollars are blocked because of conflicts between vendors. Data – sharing helps to avoid expensive mistakes or frauds that can happen along the way.
- Brand new business possibilities – if we look at the logistics sector as a form of a network combined with information about vehicles, capacity, or orders, we can scale our vendors by matching these elements.
- Automation – despite the fact that smart warehouses use robots that take their instructions via wifi, many logistics companies are far behind. To organize a transport they still have to make dozens of phone calls, send e-mails or even faxes (which is beyond old-school)! Building an agile network is a remedy here – by sharing data between vendors, we can automize most of the processes, saving time and money.
- Business network building – connecting with new partners in the marketplace is more convenient as companies are closer to each other with the help of data – sharing platforms.
- Capacity & shipping optimization – sending half-empty vehicles instead of stacking them entirely, is a waste of space, money, and it’s definitely not eco-friendly. Imagine 50 trucks that are on their way from Berlin to Amsterdam, for example. Now, around 20 of them have only 40% of capacity used. Thanks to blockchain and data-sharing that kind of waste is preventable. We can analyze data from other companies, and optimize our transports? How? By teaming up with other business players and fill a truck with goods from several vendors. It means reducing costs by collaboration with other businesses, and this way it’s more friendly to the environment.
- Forging business sector responsibility – finally, our mission at Hublock is not only enabling real-time communication between all participants of the logistics ecosystem but more importantly – using data – sharing technology to lead the industry towards new standards of business cooperation.
The automation is coming
Although the „digital fitness” is still a challenge for many logistics companies operating in the marketplace, technology is the only way for them to keep up this crazy pace and at the end of the day – survive. Regardless of whether they base their goals on B2B or B2C customers, they need to convert to automation, data analytics, and data – sharing. As soon as possible.