Managing risks with the advancement of logistics technology

What are the current risks in logistics?

All too often, the control levels for logistical operations are set below the minimum. While your Chief Financial Officer might not be in daily contact with the logistics team, supply chain analysts will tell you that if the control levels aren’t high enough, decision-making will devolve to the lowest priority (cost) because that’s all the decision-makers are empowered to take action on. To avoid this, it’s essential to set control levels high enough to make decisions based on factors other than cost.

Just because third-party logistics (3PL) has grown to support the logistics industry, that doesn’t mean that supply chain governance shouldn’t be built into your organisation – even if your logistics and warehousing are entirely outsourced. An excellent logistics organisation can only do so much from the outside. No matter how great your warehouse space is, unless the supply chain strategy is linked with the company’s strategy, you’ll always be drifting away from excellence. Aligning 3PL with organisational goals is essential to maintaining a successful business.

Software is created to help businesses become more efficient and organised. However, sometimes this has an unintended consequence – it can lead to an organisation that only thinks in the ways that the software allows. This can mean that supply chain employees spend a lot of time inputting data but then have difficulty extracting the information they need to make good business decisions. In order to avoid this, it’s important to have a clear understanding of how the software works and what its limitations are. Additionally, supply chain employees should be trained on how to use the software to its fullest potential so that they can obtain the information they need in a timely manner.

The advancement of logistics technology 

In a world with many risks and challenges, it’s more important than ever to be aware of the potential risks involved in logistics and transportation. In unstable markets and high-risk areas, there is an increased likelihood of criminal acts during transport. This means that moving products from one location to another can be a risky business, especially in areas where globalisation is on the rise. The logistics industry is particularly at risk of huge losses in profit and customer satisfaction due to the increasing demands and expectations of customers.

By leveraging the power of AI, machine learning, and predictive analytics, companies can automate warehouse operations, improve delivery times, proactively manage inventory, optimise strategic sourcing relationships, and create new customer experiences that increase satisfaction and boost sales. In other words, these cutting-edge technologies have the ability to transform the logistics industry as we know it – making it more efficient, streamlined, and customer-centric than ever before.

Future predictions in logistics technology

The use of autonomous mobile robots (AMRs) in the supply chain industry is something that has been talked about for a while now, but there has been little adoption of this technology so far. This may be about to change, however, as warehouse management systems evolve and become more efficient. AMRs could be used to optimise the picking process, for example, making it faster and more accurate.

Truck manufacturers and shippers should invest in advanced manufacturing and collaboration software systems to prepare for a recession. These systems allow trucking companies to monitor the market, automate processes, and cut costs more effectively.

Many businesses today are struggling to keep up with the demands of distributed inventory, as current inventory software doesn’t provide the necessary analysis. This is where DIFF comes in – short for distributed inventory flow forecasting. DIFF is a tool that predicts the flow of materials, thus enabling businesses to make the most of their resources and maintain a reduced inventory. In other words, DIFF makes it possible for companies to keep up with innovative shipping demands and stay ahead of the competition.

The implementation of driverless vehicles and drone delivery options has given companies a newfound solution to a variety of issues – most notably, perhaps, the lowering of costs by lessening the need for human intervention. This technology not only has the potential to save companies money, but it also allows for greater access to remote and hard-to-reach rural areas. In the past, there has been some scepticism surrounding this technology; however, given the worsening shortage of available human drivers, it may be a positive solution for the future.

Reducing risks with effective logistics technology 

Technology is always advancing, and with these new advancements comes the potential to relieve some stress that has been placed on the logistics industry for years. Some of these promising technologies include 5G, real-time data transmission, robotics, the Internet of Things and data analytics – all of which have the ability to give logistics managers better visibility into different areas of the supply chain and help them be more agile when issues inevitably occur.

Even though smart factories and warehouses can help to increase our square footage capacity, and autonomous processes could help to address labour shortages, the software can only help us so much and won’t solve all of our capacity issues. There are many processes in the chain that still require human intervention, so demand for labour will still be an issue.

A well-organised logistics policy is key to successful warehousing and logistics management. In truth, the best product won’t make customers happy if it’s delivered late, damaged, or goes missing during shipping. Knowing what standards to set ensures that risk management becomes a priority when choosing business partners and assessing risk throughout the supply chain.

Having the right level of software and technology to help support your business logistics is key. One way to ensure this is to create alliances with partners and suppliers – working with the best allows an organisation to learn about technology and systems without having to take the risk of investing in them until it’s sure it’s worth it. It also stops an organisation from becoming over-reliant on technology. From driverless cars to drones, the logistics industry has taken great leaps forward – working with strong partners ensures even the smallest business doesn’t get left behind.

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Mango Logistics uses advanced logistics software

If you are looking for a logistics partner who can support you and help your business overcome challenges currently faced in today’s market, Mango Logistics is here. Using the latest in technology advancements, combined with offering organic certification and sustainable supply chain support, we are a leading logistics provider in London and across the wider UK. 

Get in touch with our team to discuss your logistics challenges and see how we can help your business thrive.