How to Reshape Logistics using Technology

April 18, 2017 Published by
Technology has significantly improved the characteristics of logistics in every business. It has not just streamlined operations and improved process efficiency but also has automated delivery trucks. Smarter and simpler supply chain management is possible because of technology.

Three transpiring technologies reshaping the logistics industry have been discussed in this article.

Using Radio Frequency Identification Technologies (RFID):

The supply chain sector has been revolutionized after the traditional barcodes technology has been replaced by advance and more reliable Radio-frequency identification (RFID) technology which uses electromagnetic fields to automatically identify and track tags attached to objects, hence ensuring right goods at the desired place and whenever required in no time. These technologies have significantly improved the characteristics of modern supply chain management over time. It is convenient for supply chain managers to explore each step in the production cycle with real-time RFID insights. They not only come up with new ways to make sure that shipments reach their destination on time but also pinpoint process bottlenecks.

RFID Technology has drastically reduced the time and cost taken by human labor to scan, count, and register products in an organization’s ER system. It is also possible to prevent costly production breakdown using RFID because it makes it feasible for the manufacturers to monitor the frequency of machine maintenance.

Using Cloud Based Systems:

Cloud-based management software gives real-time accuracy and all-around visibility which is lacked in traditional supply chain management systems which are basic and transactional-based. Now it is easy to digitally track a product throughout each stage of its lifecycle with the help of integrated cloud-based technologies in logistics. It just not only synchronizes shipment components and updates current inventory records in near real-time but also reduces the frequency of lost products.

Besides, cloud-based technologies have an advantage over conventional systems that they can be accessed anytime and from virtually any location. Anyone willing to make transactions, communicate or download the relevant files can simply log in to the system remotely by simply using a device on which the internet in enabled. Due to external hosting of cloud-based systems, now it’s quite easy for companies to grow without setting up their own IT systems. If they want to expand their cloud services, it can be done in no time and a highly cost-effective way.

IoT Enhancements in Supply Chain:

In the past, the Internet of Things (IoT) was used in logistics to enhance the efficiency of the supply chain manufacturing process by connecting multiple technologies. It results in improved shipment workflow and reduced lag time. Interchangeable to RFID and cloud-based software in logistics, supply chain management will be influenced by IoTs in great ways.

IoT technologies communicate using Bluetooth, RFIDs, and cloud technologies to meet the growing demands of consumers and providers by quickly organizing, monitoring, and route products. Nowadays, IoT in logistics is fully integrated with the overall management of a supply chain.

General Motors monitoring system is one of the examples that tie together RFIDs, IoT, and cloud technologies. A handful of their manufacturing facilities measures humidity levels and the company has positioned network of RFIDs to do that task. If humidity exceeds the acceptable levels for painting car bodies, RFIDs notify ‘smart’ conveyor belts, so the next vehicle will be automatically rerouted to a different stage in the manufacturing process not affected by humidity.

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