Digital Transformation: Investing Today for an Empowered Tomorrow
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– Vikash Agarwal, Managing Director – Maersk South Asia, A.P. Moller-Maersk
In the logistics industry today, customers are challenged by lack of visibility and transparency in their supply chain. A complex supply chain with a large number of stakeholders, like suppliers, logistics agencies, transportation vendors etc., means that brands are reliant on a higher number of logistics nodes. Every hand-over has a margin of error that could lead to mistakes or delays, creating an environment of risk, lack of control and great dependency on service providers which became even more visible during the pandemic.
We are not seeing a new world as a result of the pandemic, just new circumstances. Trends that were already present and being developed have been expedited but risks that were a part of the overall supply chain network have also been magnified. The industry should use the pandemic as an opportunity to work towards reducing the risk of delay & wastage thereby eliminating weakness in the supply chains of customers.
“The acceleration of digitization of supply chains can help in discerning the movement of goods at each step from start to finish. “
Customers are not physically close to their goods when it starts to move through the supply chain and having access to data that is seamless, timely and integrated helps them feel more in control of their supply chain management. We need to create this visibility for them so they can act when situations arise such as delays, changes to destination or demand to name a few; in essence, empowering them to make decisions on the basis of accurate data to derive desired outcomes.
We have observed a gradual switch in the mindset within the industry and customers since the advent of the pandemic. Technology will play an ever-growing role in operation planning, demand planning, demand sensing and network design, where the capabilities of the supply chain will be greatly enhanced. The foundation of technology is data. However, the challenge for most major companies is bringing together the different data sources such that it can be consumed and analyzed easily to gain reliable insights for better decision-making.
Logistics providers need to build the capability to leverage technology at scale and provide digitized, scalable, and most importantly, better solutions that meet the customers’ needs and which is expressed in their individual bespoke supply chain and operations design. The ability to offer digitized solutions to customers in the future will no longer be a differentiator, but a ticket to participate.
“Blockchain is also being considered a potential game changer; besides moving goods, the supply chain is also moving an incredible amount of data and information.”
Unfortunately, this often leaves an enormous paper trail that can get complicated particularly for a fragmented supply chain. Creating a platform that connects the entire ecosystem and allow the exchange of documents, information and data freely and seamlessly is a way not only to reduce cost, but also decreases lead times in the supply chain.
The use of technology is also enhancing the potential of supply chain integration. The impact of disruptions on a fragmented supply chain can lead to a disproportionate cost for customers and thus, they are attempting to reduce the number of stakeholders involved in their supply chain operations. We see these proof points in the Middle East as well as in India where customers seek one partner for various solutions that encompass transportation across ocean, land or air as well as process handling such as customs brokerage, booking management, CFS solutions.
Today, we have several digital tools that provide end-to-end tracking and monitoring of cargo across our various solutions. At the same time, we have also seen an increased interest in our visibility app, which in addition to cargo tracking, also allows customers to store and share documents and have a holistic view of all their shipments.
Digitalization is inevitable across all industries. Right from machine learning, AI, IoT, and blockchain among many more evolving tools and processes, technology plays a highly crucial role in the growth of any business as it enables brands to make decisions on the basis of accurate data and analytics. Brands in the retail and ecommerce industry have either partially or fully integrated technology for improved warehouse and store management in order to create a more seamless experience for their customers. Similarly, automotive players are investing heavily in AI and automation right across manufacturing parts and products to warehousing facilities to reduce any margin of error like faulty parts, delays, inaccurate demand planning, etc.
“We were not born a tech company, but we are getting more and more tech enabled. It remains a high priority for us because thousands of companies big and small across the world depend on us transforming to support their ambition and their growth for the future.”
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