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EXCLUSIVE COLUMN
EXCLUSIVE
EXCLUSIVE COLUMN of Amit Kumar
By Sea and Coast | 04/03/2020

Digitization is a continuous process that has proved consistent in almost every industry

This is certainly true of freight forwarding, where digitization, along with online purchases, global markets, and new production technologies, has had a lasting impact. Logistics, cargo handling, last-mile execution, customs clearance, and compliance, and many other aspects of this business respond to these and other factors. Here s how. Digitization is a continuous process that has proved consistent in almost every industry.

(1)  Electronic commerce causes a huge increase in the volume of transport. According to Statista, the global ecommerce market - the B2C market - could be worth over $ 6.5 billion by 2023. Further observations indicate that the B2B market is six times larger. The sheer amount of products is a big change and a challenge for cargo transportation. It can be rightly said that e-commerce has a direct impact on the amount of cargo transported. According to the commodity industry: Intra-regional truck journeys with last-mile delivery are increasing even though the average journey length is decreasing. As retailers have expanded their multi-channel sales strategies to reach more people from more locations, the freight industry has responded by building new distribution centers to further shorten the value chain. About 13% to 30% of online purchases are returned - a significant increase compared to stationary purchases with a return rate of 8%.Online commerce also increases the requirements for reverse logistics. This is not news that the ability to buy and sell items online creates online buyers. More interesting is how the ubiquity of e-commerce has impacted other technologies and trends on this list, including the need for better trust mechanisms, global demand, environmental friendliness and the establishment of an industrial IoT for transport companies. Electronic commerce not only increases the volume problem. It also raises the bar in terms of delivery times and lowers the bar about price expectations. The commodity industry must respond in kind.

(2)  The industry adheres to block chain standards Blockchain in Transport Alliance (BiTA) represents over 300 members of the global transport industry who see blockchain as the basis for a new type of commodity industry. BiTA spokesperson said: Over the next five years, we plan to massively implement many digital technologies, including blockchain so that the transport of goods from origin to destination will be almost trouble-free.TradeLens is a blockchain initiative that is already recording impressive interest in the freight and freight industry. The top five freight lines, which account for 60% of global ocean capacity, have already registered. This type of trading system reduces costs and offers a much shorter value chain thanks to the blockchain technology of the distributed ledger. The problem is not that blockchain disturbs carriers, carriers, and external logistics companies - it already disturbs them. Smaller companies need to know wha s on the horizon and which technologies are most likely to disrupt their business models and workflows.

(3) The global e-commerce market causes environmental pollution One of the largest carriers, Maersk, announced that by 2050 it will be climate neutral - a promise made that sea freight accounts for 90% of world trade and has a huge impact on the environment and climate change Transparency is one of the main reasons for the global trade-oriented market. When customers have a choice, they increasingly choose green products or services from two companies when both offer similar products and services. This applies to the selection of freight services as well as any other product. Carriers and other companies play a huge role in overall supply chain stability, and the global market means that they can no longer hide outdated practices. Like in the United States, the Environmental Protection Agency (EPA) notes that companies should use available technologies such as sensors and business.intelligence platforms to measure, evaluate and evaluate freight operations and make better strategic decisions to reduce emissions. One of the starting points is the EPA calculator for greenhouse gas emissions, which companies can use to assess the nature of their impact on the environment. From there, it makes a difference in knowing which technologies offer a reliable solution, including the Internet of Things.

4 The Internet of Things makes goods transport more responsible According to Deloitte, companies dealing in the transport of goods and goods by rail, land, sea or air transport have a unique opportunity to use widely distributed networks to quickly access and access information on transport processes, emerging conditions to respond. IoT offers data mobility up to individual resources and articles in the carrier s supply chain. Take, for example, the problem of keeping food, drink, and medicines at set temperatures. Freight forwarders and forwarders who use sensors in airconditioned vehicles or facilities can immediately determine if a product no longer meets the requirements. Intelligent cooling systems can even automatically regulate the temperature. Sensors also improve the details in paper paths and product origin control documents in other ways. Fragile products, including fragile parts and carefully calibrated equipment, often require particularly thorough inspection upon arrival. Shippers have to make the right packing decisions first, but the availability of sensor data during travel helps manage risk and makes it easier to answer error questions if necessary.

(5)  Automation saves resources and streamlines operations Automation is one of the most important digital breakthroughs in the freight and handling industry. Here are just three reasons why: Connected material handling devices can be used in distribution and sorting centers that monitor their condition and proactively report maintenance problems, which helps eliminate error patterns, optimize part life cycles, and focus talent on other priorities. Intelligent inventory and warehouse management systems allow carriers to automatically identify available warehouse space in their warehouses and find partners with loads ready for consolidation, while automated systems store or receive goods without assigning order pickers or. stackers. The cargo control on arrival or before departure uses modern achievements in image processing. Job testing robots can help redistribute talent to more demanding tasks while reducing error rates. The transition to just-in-time business processes and the dream of forward-looking shipment means that the freight transport industry is constantly under pressure to modernize and rationalize everything. The e-commerce explosion is both an opportunity and a big problem for companies in this field - and exciting new technologies help them survive change.




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