The technological juggernaut is transforming the logistics and supply chain industry in the region and globally. In this contribution, Eugene Mayne, Group CEO, Tristar Group, examines the repercussions and disruptions attributed to the Fourth Industrial Revolution and outlook for the future.
We are living in the Fourth Industrial Revolution, and everything around us is being disrupted. The pace at which new creative ideas are transforming business models today is rapid, and businesses need to invest in technological innovation in order to survive.
Looking at the logistics and distribution industry, the business landscape has changed dramatically in the last decade, with companies turning to automation and technology solutions to streamline operations and reduce costs, while also looking to digital technologies to provide better service to clients.
Blockchain, for instance, gives logistics businesses the ability to provide irrevocable verification and oversight to complex transportation processes for customers. It also enables businesses to eliminate the risk of human error and optimise warehousing manpower, scheduling and deliveries, which results in fewer manual transactions.
Additionally, the technology can make shipping faster and more efficient by improving data visibility and demand management.
Tristar Group was one of the first logistics companies in the UAE region to adopt blockchain technology, and will not be the last. By adopting blockchain technology, the Company has been able to seamlessly tie together its warehouse management system and transportation platforms, allowing key customers to access a single secure platform protected by military grade encryption.
A recent Boston Consulting Group (BCG) survey found that 88% of transport and logistics professionals think that blockchain will disrupt the industry. We expect other businesses to follow suit and champion the use of blockchain in their operations. The global blockchain market may be worth over $23 billion by 2023.
Where to next?
Customers increasingly expect to receive goods and services faster and at lower delivery costs, so logistics businesses are tasked with finding more efficient and flexible processes. Space travel and Hyperloop for mobility are just some of the radical innovations that could accelerate the disruption of traditional logistics businesses.
Another area is in analytics and data processing. The Artificial Intelligence (AI) market in the supply chain and logistics industry was valued at approximately US$ 502.9 million in 2017 and is expected to grow at more than 45% over the forecast period to 2025.
At present, many of the sector’s newest technological innovations are focused on storing and distributing hazardous products safely. Tristar Group, for instance, recently fitted fifty vehicles with Driver Fatigue Management Systems which use an infra-red camera system to track a driver’s eye movements. The Company has also recently acquired new trucks with the latest active and passive safety technology to help avoid dangerous collisions.
Socioeconomic investment
Fuel is a major resource used in the operations of logistics businesses, which is why as a sector we should support the advancement of the 17 UN Sustainable Development Goals and look for technological ways to reduce fuel consumption.
The potential for technology and innovative global businesses to find answers to many of the socioeconomic challenges facing the world today is inspiring. From climate change to community development, we know that digital breakthroughs driven by business imperatives impact more than the bottom line. Technology should be seen as a long-lasting investment in communities, providing a ‘digital-dividend’ that compounds over time.
Everyday infrastructure across all sectors is being transformed by new technology embedded throughout the supply chain. The future of technology in the logistics industry is an exciting space and we look forward to seeing where the industry will go in 2020 and beyond.
