Summary
The pandemic has increased the urgency for digital transformation. This is particularly true in the area of transportation and logistics. Visibility, available shipping alternatives, and costs are the driving forces for this. The first link below is an informative podcast from Bob Bowman on the state of supply chain visibility. The possibility for dramatic improvements here are exciting. That is, if the non-technical barriers can be eliminated.
I am running a poll on LinkedIn for feedback on visibility issues. QUESTION Where is your single biggest supply chain visibility issue? The results so far are (159 votes)
- 37% Suppliers/Factory/Docks
- 32% Ports, Airports, Customs
- 31% Carriers, 3PL, Freight Forwarder
The second link below provides insights on the growing trend for using digital freight brokers. This is an area that is being disrupted by the likes of Uber Freight and others.
Top Links
Podcast | Making Dreams of Supply-Chain Visibility a Reality, SupplyChainBrain, Bob Bowman & Cindy Elliot, July 17 (20 min listen)
- Tracking at the container, component, or chassis level, is still the industry norm due to the barrier of siloed data
- The visibility black holes occur with handoffs to 3rd parties who have no obligation to report data
- Current tracking has many assumptions, e.g. the container got drop at the port, the ship sailed, the ship arrived, etc.
- The Port of Rotterdam’s “Container 42” intelligent container project attempts to forge vertically integrated open-networks between 3rd parties
- As data silos are eliminated, the capability for tracking, alerting and mapping supply chains and their disruption patterns will evolve with digital twins and AI technology
Transportation Experts Share Their Insights On Digital Freight Brokerages , Forbes, July 8 (5 min read)
- Companies are increasingly using digital brokers like Uber Freight, Loadsmart, Convoy, and Sleek Fleet for freight matching and benchmarks
- Most companies only go to an outside market when they don’t have enough capacity on that lane
- Fluctuations in available capacity and pricing are driving more shippers to use digital brokers
- Some large MTSs are developing their own digital broker systems, e.g. GlobalTranz with GTZamp for freight matching
- Transplace acquired Lanehub, to drive lower costs from carriers and private/dedicated fleets by matching headhauls and backhauls
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Best regards,
Don
Don K Brown
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