Disruptive Innovations transforming  logistics by Abhilasha Satpathy, DCMME Center Graduate Student Assistant

Disruptive innovation and bid data can address many challenges in logistics. Some of them are:

  1. The Last Mile of Shipping Can Be Quickened – The last mile of a supply chain is notoriously inefficient, costing up to 28% of the overall delivery cost of a package.
  2. Reliability Will Be More Transparent – As sensors become more prevalent in transportation vehicles, shipping, and throughout the supply chain, they can provide data enabling greater transparency than has ever been possible.
  3. Routes Will Be Optimized – If you underestimate how many vehicles a particular route or delivery will require, then you run the risk of giving customers a late shipment, which negatively affects your client relationships and brand image. Optimizing saves money and avoids late shipments.
  4.  Sensitive Goods Are Shipped With Higher Quality – Keeping perishables fresh has been a constant challenge for logistics companies. However, big data and the Internet of Things could give delivery drivers and managers a much better idea of how they can prevent costs due to perished goods. A temperature sensor inside the truck could alert the driver, and suggest alternate routes.
  5.  Automation of Warehouses and The Supply Chain – The ability to accurately predict demand in every DC, retailer, and customer is the holy grail of being able to deploy inventory where and when it is needed.
  6.  Better inventory deployment and labor management – For retail store managers, planning shifts to meet customer demand is a sensitive task- overstaffing kills profitability, and understaffing results in angry customers.  Planning has always been done based on history.  One retailer took into account the following additional data:
  • New delivery times
  • Local circumstances and holidays
  • Road construction
  • Weather forecasts

Big data and predictive analytics gives logistics companies the extra edge they need to overcome these obstacles. Sensors on delivery trucks, weather data, road maintenance data, fleet maintenance schedules, real time fleet status indicators, and personnel schedules can all be integrated into a system that looks at the past historical trends and gives advice accordingly.

References:

Swingle, K. (2017, September 25). Disruptive Innovation in Logistics. Retrieved from https://www.spartanwarehouse.com/blog/spartan-logistics-understanding-big-date-and-how-its-revolutionizing-logistics.

Questions:

  1. What challenges can be fixed with big data and disruptive innovations in logistics?
  2. How does big data help in better inventory deployment?
  3. How does big data improve reliability in transportation?

 

DRONES IN GLOBAL SUPPLY CHAINS by Abhilasha Satpathy, DCMME Center Graduate Student Assistant

Two years ago, in an article in SCMR author Nick Vyas outlined real-life applications for drones in the healthcare industry, and predicted other use cases such as pipeline inspections or deliveries of parts and supplies in hard to access areas.

He also noted that “PINC, a provider of yard management systems, has deployed a solution that utilizes drones to identify the location of trailers, shipping containers, and other assets in hard to reach areas. Equipped to carry GPS, RFID, OCR, and barcode readers, the drones can fly overhead to quickly locate and identify assets that have been tagged in a yard or port.”

So, what is the state of drones in the supply chain today?

Companies are focused on improving inventory accuracy to achieve higher supply chain velocity. Tasks like taking inventory and cycle counting are still carried out by humans which can be done more than 300 times faster by drones.

What is the state of the technology? Today, the drone, or robot, flies autonomously in a gps-denied environment using advanced sensors. The company’s warehouse management system (WMS) feeds existing inventory information to the PINC application via integration. When the robot receives a task to count inventory – say the number of cartons on pallets in a storage bay – the software first creates the optimal path for the drone to travel based on mapping done previously.

The drone doesn’t need markers or lasers for guidance to navigate through warehouses. The robot is equipped with an optical system combined with computer vision and deep learning technologies. When it passes through an assigned location, which it knows by the X, Y and Z coordinates, it visually inspects inventory labels and takes photos of the inventory to be counted.

The digital images are processed in real time to generate a count, which is compared against the known count in the WMS system. Since the system manages by exception, after taking inventory, the application provides an exception report to the operator who can click on the exceptions, look at a photo to confirm a count and then, if needed, update the WMS.

Down the road, Yearling expects conversations about using drones in transportation to continue, if for no other reason than the amount of spend on transportation.

References:

https://www.logisticsmgmt.com/article/the_emerging_role_for_drones

 

Questions:

  1. How are drones being used in supply chain today?
  2. How do drones aid Warehouse Management Systems?
  3. How do drones improve inventory accuracy?