Supply Chain World Volume 10, Issue 1 Volume 10, Issue 1 | Page 14

“ If you look at things from a cost perspective , much relates back to storage and transportation ,” Gopal continues . “ Process and value-added services go along with that . As such , we can also define disruption as improvements that are made when shifting from legacy systems to new , optimized processes . Benefits accrue in various areas : digitalization , optimization , infrastructure and modernization enhancements , and so on .

“ Whether you are dealing with a developed or developing country , transportation represents a significant part of any logistics spend , ranging anywhere from 50-to-70 percent ,” he explains . “ Hence , it is imperative that assets are fully utilized . Naturally , the first fragment of the logistics ecosystem to be disrupted was the transport business . Transport aggregation models , for instance , ensure trucks are fully utilized ( since , typically , utilization sits at around the 50 percent mark ). Models look at last-mile delivery and real-time monitoring to guarantee assets are aided by disruptive logistic practices .”
Real-time visibility
Another example Gopal points towards is the effect disruptive logistics has on warehousing . “ Historically , at least , sales numbers and business volumes could be managed by human beings ,” explains Gopal . “ Not anymore . Today ’ s age of e-commerce and mass consumption means we must look towards robots , transforming the way goods are moved and processed within a warehouse .
“ In Germany , many start-ups are going one step further , using Augmented Reality ( AR ) glasses to expedite the initial training period for every new employee – all they need to do is put them on , follow a set of instructions , and away they go .
“ Indeed , if you look at Industry 4.0 , it suggests a revolution , brought about by novel technologies and processes , will forever change manufacturing . The sector is evolving , and this has led to a new focus on Artificial
Intelligence ( AI ), automation , and robotics . It ’ s never been easier to capture data and store it – there ’ s so much being collected right now . In a warehousing context , you have collaborative robots , which will continue to learn as they gather more data on what products are being picked and how often .”
While the pandemic certainly increased volumes from an e-commerce perspective , it also accelerated the pace of digitalization . “ Prior to the pandemic , supply chain digitalization was talked about by companies ,” reflects Gopal . “ But now there is no escaping it . The times mandate immediate action . Moreover , demand for 48-hour , 24-hour , and sameday delivery has forced logistics companies to generate innovative delivery models and establish new micro-fulfilment centers . “ Powered by AI , real-time tracking provides the dynamic scheduling and ( re ) routing required for this procedure and allows logistics companies to optimize delivery
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