Inbound Logistics | January 2023

[ INSIGHT ] SCCAPACITY

by Syed Aman Co-founder & CEO, Hwy Haul contact@hwyhaul.com | 855-499-4285

3 Ways Digital Transformation Enhances Capacity

After consecutive pandemic years, supply chains are a mess. As a result, businesses are running out of stock just as surging consumer demand drives up prices for remaining goods, contributing to record inflation and further disrupting consumer markets.

Taken together, these connected technologies can inform the entire supply chain. By 2025, more than one-quarter of supply chain decisions will be made using intelligent edge ecosystems, according to a Gartner analysis, as connected technologies enable more responsive decisions for companies navigating a complicated and interconnected supply chain environment. 2. Automated systems streamline operations. Articial intelligence (AI) and machine learning (ML) technologies are rapidly advancing, redening real-world logistics operations in the process. Moving forward, supply chain entities can expect to leverage these technologies to make their operations more streamlined and responsive than ever before. For starters, many enterprises and small and mid-sized businesses (SMBs) still rely on input-heavy technologies such as spreadsheets and fax machines to facilitate logistics management. Articial intelligence can perform many of the dozens of back-ofce steps and touchpoints required to keep supply chains running smoothly, streamlining days of work to just a few minutes.

Here are three ways that leveraging digital transformation to improve supply chain and logistics outcomes can improve capacity. 1. Connected devices enable more responsive decisions. Supply chains are predicated on effective connections, and today’s expansive network of internet- connected devices, including Internet of Things (IoT) ecosystems, make these connections more potent and powerful than ever before. For example, location trackers providing real-time progress reports enhance visibility into supply chain operations, helping identify bottlenecks and implement immediate solutions. Similarly, driver apps that manage scheduling and availability can help companies keep their logistics operations optimally staffed and engaged. Finally, a collection of IoT devices, such as temperature sensors, equips every part of the supply chain with actionable insights to ensure that sensitive cargo is optimally stored and transported.

This reality was acutely on display in February 2022 when more than 100 containerships collectively carrying over $25 billion worth of products waited 18 days on average to unload their containers at Los Angeles and Long Beach ports. Unfortunately, diagnosing the problem is the easy part. Solving supply chain challenges is decidedly more difcult, especially as businesses grapple with the implications of Russia’s invasion of Ukraine, the Great Resignation, persistent strong consumer demand, and other disruptive elements that will surely arise in the weeks and months ahead. In response, many companies are turning to digitalization to make supply chain logistics more efcient, effective, and sustainable. In a survey by MHI and Deloitte, 80% of supply chain entities reported that they are accelerating digital transformation in response to the pandemic, making it clear that innovation is key to enhancing logistics performance.

68 Inbound Logistics • January 2023