Sustainability is one core component of an effective supply chain. Fortunately, modern tools, devices, and software, such as the Internet of Things (IoT) and blockchain, are streamlining how we balance these systems. With highly transparent and secure networks, we stand to improve the overall sustainability of supply chains for cleaner and more lucrative results.

The IoT and blockchain support sustainable supply chains in a variety of ways. By exploring these sustainable functions and how you might integrate them into your business processes, you can build the supply chain stability you’re looking for in an uncertain economy.

IoT provides data transparency that supports decision-making

The Internet of Things is the term given to devices that collect data and then communicate that data over the internet. IoT devices range from industrial sensors to wearable devices, all with various implications when it comes to the functionality of a supply chain. These implications are far-reaching across transportation and supply chains and would not be possible without the world of big data that the IoT taps into and makes useful.

IoT is instrumental, for instance, in developing eco-friendly, efficient fulfillment center strategies. That’s because these processes rely on the kind of big data transparency that only the IoT can offer on a scale that reverberates through the entire supply chain. The IoT enables accurate tracking methods, consistent protocols, and data analysis that all stand to change supply chain decision-making for the better.

Many companies have already experienced the sustainable benefits that come through industrial IoT. Shipping line giant Maersk, for example, built an infrastructure of sensors and mobile and satellite communication technology with the help of Ericsson to monitor its fleet of 300,000 refrigerated produce containers. The increase in transparency of container conditions led to a decrease in necessary inspections. This, Maersk says, means reduced resource use and even CO2 emissions.

As we have seen, the IoT supports supply chain flexibility in the following ways:

• By improving supply chain transparency
• By improving system efficiency
• By reducing resource consumption

As you explore the use of connected devices in your supply chain, consider these benefits. But also understand that with more connected devices, you present your company with more digital security risks.

Want to learn more about managing your company’s supply chain? Take the FITTskills Global Value Chain course here.

Blockchain protects data from interference

Connectivity offers us much in terms of actionable insight and effective communication. And yet, digital threats are a huge concern for supply chain companies. In one infamous example, Target became the subject of a data breach through its vendor and had to inform 110 million customers of their potentially stolen credit card data.

It is precisely attacks like these that make it necessary for supply chain companies to protect themselves against all the threats of the digital world. Malware opens up the gates to your data. From there, you stand to suffer incalculable losses from the damage to your reputation alone. Blockchain systems, however, are changing the playing field with enhanced security measures for protecting data.

Blockchains are decentralized data systems designed for cryptocurrencies like Bitcoin. They store data in nodes linked by cryptographic hashes. Now, blockchains are being integrated by companies like FedEx to improve the traceability of their packages because blockchain can store a (mostly) tamper-proof record of inventory locations and conditions.

With greater accuracy in a record, any data breach can be caught and prevented more efficiently. Simultaneously, these improvements offer much greater sustainability potential through their ability to pinpoint spoiled products or remove recalls with greater precision. Supply chain companies that can track inventory can more effectively reduce waste.

In this sense, blockchain and the IoT fulfill similar functions and offer similar benefits across a supply chain. In fact, utilizing these technologies in tandem can be a great way to maximize supply chain potential.

IoT and Blockchain streamline security and sustainability

The IoT offers unprecedented insight into business functions and supply chain conditions. But traditional networks for hosting this data present all kinds of digital threats. That’s where blockchain can come in to help improve the security of an IoT network and provide new business potential.

Blockchain is unique in its use of servers in various locations to host, protect, and backup data. To infiltrate such a system typically requires absurd amounts of computing power. By leveraging the power of the IoT to assemble supply chain insights, then protecting those insights on a blockchain, you can build greater accountability and security for your supply chain. From here, sustainability becomes easy.

That’s because sustainability means longevity without damage. Getting there requires insight only accurate data records can provide. Apply the IoT and blockchain as you assemble the information architecture needed to streamline a supply chain, and watch cost and resource-saving opportunities open up across your ventures.

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Logistics and shipping have always been busy and rapidly transforming industries that embraced the latest technologies faster than many other industries. From the adoption of advanced car sensors to the Internet of Things (IoT) gateway and devices or the big data analytics to analyze freight and shipping data, there has been no dearth of successful efforts to incorporate new technologies to boost efficiency in the sector. No wonder logistics solutions developed by mobile app developers played a central role in this technological revolution in the sector.   

Logistics as an industry has been at the forefront of the adoption of mobility and mobile apps. From the shipping and logistics brands around the world to the businesses running their own in-house logistics solutions, the adoption of mobile apps has been widespread.  

In this context, it is vital to understand the wide-ranging implications of mobile apps for the entire logistics industry. Here are the key ways mobile apps transformed logistics operations and businesses. 

IoT, GPS, and AI

Internet of Things, Global Positioning System (GPS), and Artificial Intelligence (AI) have been among the most elementary technologies for the entire logistics sector. Thanks to the connected device ecosystem and the GPS, tracking shipments and on-road vehicles became easier than ever before. No wonder the world’s biggest logistics solution providers are now using IoT and GPS for their processes. 

In the past few years, artificial intelligence (AI) has come in a major way to help these two technologies provide more precise output. While connected transport systems can be tracked and the GPS system can deliver precise location information about the transport vehicles, AI technology can process this information along with the traffic data to guide the vehicles to take the best routes. Moreover, AI-based apps can also predict delivery timing more accurately.

Effortless warehouse management

Human errors have always been a nightmarish factor for the vast majority of logistics and shipping services and companies. Fortunately, thanks to the mobile app-based consolidated management of warehousing data and streamlined processes, the impact of such unwanted errors can largely be avoided now.  

Mobile apps facilitate automatic processing through logging equipment IDs and include storage information to make the whole system streamlined and friction less. The best thing is, logistics mobile apps can also sync all data with a central database.  

Keeping track of shipments

Thanks to mobile apps, we no longer need to check emails or the respective merchant website to track the shipment we are likely to receive. We get instant notifications on our screen and can track the shipment in real-time. Moreover, the entire process is transparent and informs us about the product shipment and arrival from time to time through mobile notification messages. 

This ease of keeping track of shipments is great for the user experience of countless customers who order products online. Moreover, shipment tracking through mobile apps also helps to boost the productivity of the entire sector. 

More e-commerce sales

Besides providing better customer experience and greater procedural simplicity, mobile apps for the logistics sector also helps to create more business opportunities simply by increasing total sales across retail and merchant apps and websites. 

Thanks to the faster and transparent delivery process that allows shipment tracking throughout the process, many retail customers order products online or through mobile apps without the slightest worry over any errors in the entire process. Moreover, the prompt confirmation of an order and notification about the shipment in the delivery process makes the whole process transparent, trustworthy and reliable. 

Cost advantage and efficiency

The mobile app development for the logistics industry can not only ensure optimum transparency and efficiency but also help reduce the task loads for logistics professionals. For example, the streamlined, transparent delivery process helps reduce the number of phone calls from customers asking for updates and information, as they always remain informed about the progress of the shipment and delivery. This helps the logistics companies to decrease costs by reducing the demand for dedicated and round the clock customer service.  

Transport operations

One of the key advantages of logistics apps is the way they help ease out transport management and operations. Any logistics service needs to handle a fleet of vehicles from various operators and transport services. By using a simple app, the logistics company can manage all these vehicles from various operators and transport services in a seamless manner. 

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In January’s Consumer Electronics Show in Las Vegas, we saw a considerable amount of new tech items launched and introduced to the public. While most were upgrades of existing technology and devices (smartphones, smart TVs, and other consumer electronics), there were some that really drew our attention.

Even if it’s hard to judge if a new product or piece of tech is a trailblazing idea, there were innovations that really aimed to change our perspective. We saw common products injected with internet connectivity and capability, becoming “smarter” by being able to provide additional information on top of the usual tasks they’re expected to do. Add in a certain level of automation and you get everyday items actively gathering data from their environments, and possibly adjusting their performance to match the needs of the people using them.

Improving common household items through the “Internet of Things” concept also opens up new possibilities for businesses. Small improvements such as activity and location tracking, data gathering, and automated sending all have the possibility to change the way businesses interact with and sell to their customers.

Interconnected devices and household items will work together to make your day

Now that IoT is becoming increasingly well-known, we’re exploring ways to make the most of these connected “household” things. Initially, we’re able to connect one thing to the web, and are already amazed with all the added functionalities we can get from it.

For example, by connecting your fridge to the Internet, you’re able to wirelessly check its contents, create a shopping list based on your current inventory, or even count the calories of whatever is in there. The common telephone, when connected to the Internet, improves it drastically. It paved the way for affordable global communications used by enterprises.

Amazingly, we’re already moving past that phase to a new level of IoT development. We now know that if we “inject” a bit of internet connectivity into a common household item, we’ll be able to discover new uses from it.

Now, we’re starting to string together these interconnected items and create a life-altering experience.

We’ll be able to look at things differently and see if these things can redefine some of the most mundane chores that are currently part of everyday life.

If we look at the bigger picture, this interconnectedness of common household items can prove useful for big businesses. We could see multiple devices from one maker, all working together to provide a better experience for the users.

For example, Nokia is venturing into health tech in the form of sleep tracking. Their aim is to give users insight into their nighttime habits. Their product, Nokia Sleep, is an internet-connected pad placed under the mattress to track your movement, brain activity, and other data to analyze your sleeping patterns. What they aim to learn about is the quality of sleep that you’re getting and gain insight into how they can improve it.

With all the data gathered, Nokia could introduce other products like a lamp/night light, music player, and an automatic recliner which would all be interconnected. All you need to do is sleep, and based on your sleeping patterns, these devices will all work together to provide the best quality of sleep for your specific needs, from selecting the best lighting condition and background music to optimizing your sleeping position. It could even be possible to integrate it with your phone system so that it can filter calls or alerts by importance. This information can then be used to develop or sell new products, increasing the value per customer and overall business performance.

Going back to the fridge example, perhaps grocery stores will be able to send you coupons for products your fridge realizes you’re almost out of, or recommend recipes based on ingredients in your fridge and let you know what final items you need to buy to finish the recipe.

All your household devices will be listening to you, and you’ll probably want them to

The number of smart speakers or voice assistants available in the market today is steadily rising, and this could be proof that we’re warming up to “willingly” connect our homes to the Internet. But having an always-on smart speaker listening to everything you say is just the start of the interconnected future that IoT promises.

Other items, especially the ones we use regularly, will have the capability to “listen” to their users and gather every bit of usable data. Some devices and apps are already gathering audio information to customize ads, and the ability to target and customize to your exact wants and needs will only improve with time.

One example of this is the GoBe 2 smart-life band from Healbe, a California-based maker of fitness wearables. The GoBe 2 is capable of tracking your calorie intake, detect minute changes in your bloodstream, your heart rate, and sleep quality. What makes the GoBe 2 unique is that all of the information gathered will be uploaded to the cloud, to an online portable accessible to your trainers, nutritionists, or wellness coaches.

This takes tracking to a new level, as it gathers data not only for your personal consumption, but for those providing services to you. This way, another pair of eyes will be on the lookout for your health. It also gives them more data to create customized offers or promotions, perhaps for a yoga class to help you relax or a vitamin to supplement your nutritional plan, which should benefit you as a customer as well.

If we magnify this and apply it to all businesses, this presents a massive opportunity to properly learn about your customers.

Makers of “smart” devices can gather data from their products in order to learn about specific habits of their users, which can then be re-used in many ways. Ideally, the data gathered will be used to benefit the users and not the company, though there will be countless opportunities where both will benefit.

With IoT, the world is changing before our eyes – are you ready?

The concept of IoT is slowly opening our eyes to a world of interconnectivity. It’s not just about our computers and communication devices, because even the humble toaster sitting in the kitchen can be made “smarter.”

What matters is how open-minded we are to these changes, because our willingness to use them and be tracked by them will make or break IoT. And if we look at the bigger picture, the evolving concept of IoT can also shape the way we do business, as it opens us up to new products and services and changes the ways businesses and their customers interact on an everyday basis.

How do you feel about the increasing use of IoT – are you more excited about its potential for connection and convenience, or concerned about data and information privacy issues? Let us know in the comments below.

The post How the Internet of Things (IoT) is revolutionizing the business-customer relationship appeared first on Trade Ready.

As the rate of technological development zooms ahead, and global value chains evolve, companies will need to be ready to open their eyes and minds to the possibilities of new processes and the skills that go with them.

Here, we are predicting the top 8 ways supply chain management will be different in 2018, and how you can keep up.

Check out Part 1 in this series to see the first 4 changes we have forecast in the year ahead.

Read on for 5-8.

5. Self-driving fleets will move from testing to implementation

Recently Tesla has been making headlines with the reveal of their Tesla Semi – the electric car company’s first foray into transport trucks. While there is no clear date for the roll out of the trucks, equipped with advanced autopilot, orders have already started pouring in from big names including Pepsi Co, UPS and Walmart.

Companies that invest in the electric fleets should see a cost savings of 20% over a standard diesel truck, according to Tesla CEO Elon Musk.

Tesla won’t be the first to put a “robotruck” on the road. Daimler’s Freightliner division began testing out its autonomous tractor-trailer in Nevada back in 2015.

But with significant regulatory hurdles, will this new type of vehicle really take off in 2018? The momentum is certainly building, and with good reason. The benefits of autonomous trucks are plenty, and the need to address a rapidly growing demand and diminishing workforce are driving the adoption of the vehicles among the industry’s major players. According to Wired, the trucking industry is now short 50,000 drivers, and as current drivers retire that number could reach as high as 175,000 by 2024.

According to the New York Times, in 2017, companies and investors are on pace to invest $1 billion into self-driving and other trucking technologies – a tenfold increase over 3 years ago. That number is set to increase exponentially over the next few years. Companies of all sizes, including small start-ups are joining Google, Uber and Tesla in developing and testing their own autonomous trucks.

Silicon Valley start-up Embark have partnered with Frigidaire, and have been hauling their refrigerators 650 miles down the I-10 freeway using their robotrucks since October. For now, all automated trips are being supervised by a driver, but Max Fuller, executive chairman of trucking giant U.S. Xpress, has stated that he expects to see Level 4 autonomous vehicles (those that can fully operate without a driver present) to be hitting the roads within in three to four years.

6. Last mile delivery gets disrupted by sharing economy

Thanks to ecommerce pioneers such as Amazon, consumers now expect and demand ever greater control over the delivery of their purchases. Same day delivery has become a reality in major cities all over the world. In order to compete, retailers must now embed logistics into the customer experience from the very beginning.

Lessons learned from the hospitality, staffing, and mobility sectors provide successful examples of how to use sharing across all parts of the logistics value chain. There are infinite ways this can and will transfer over to other parts of the supply chain industry.

Oft-cited giant of the sharing economy, Uber, has taken their ride-sharing service a step further with “UberRUSH”, using GPS enabled apps to connect drivers to ecommerce customers in real time for fast, last-mile delivery. It integrates with ecommerce platforms like Shopify and Bigcommerce.

In urban centres, urban discreet warehousing can enable companies to become more agile in delivering goods on demand.

Logistics providers will need to learn to adopt capacity sharing platforms to remain competitive – or risk losing out to niche companies providing this as a specialty.

The sharing economy also presents new options for businesses to improve efficiency and productivity within their own organization with on-demand staffing (think TaskRabbit, Fiverr and Upwork).

The sharing economy provides endless opportunities for companies of all sizes, and after a few years of proven successes, 2018 will be the year it really explodes into supply chain management.

7. ‘Amazon effect’ moves into industrial manufacturing, high tech and more

Several times a year Amazon makes new announcements about how they are further revolutionizing ecommerce and delivery. The bar continues to be effectively raised and Amazon has become a model to innovative companies who recognize that they must “evolve or die”.

Though it may seem a daunting prospect, omni-channel logistics companies will be looking to rise to the occasion and compete with Amazon head on.

And in order to do that they will have to get on board with some of the best tech tools being developed for business today.

Real-time data collection is now a reality with the adoption of business-ready IoT. Companies that are able to leverage the data they are collecting can better service their customers by not only meeting their needs but anticipating them, and providing convenience through omni-channel ordering from any device.

Now that customers are able to order from anywhere, anytime, the same expectations are raised for delivery. One technology allowing companies to better meet these raised expectations is 3D printing. We talked about 3D printers in our #TradeElite Twitter chat at the end of 2016, and since then the technology has continued to gain momentum in adoption, allowing companies to react quickly to changing customer demands by producing parts in house, as needed.

As mentioned in Part 1 of this article series, AI will also empower companies to become more agile, fast and cost-effective in this post-Amazon era of global logistics. With the adoption of these new technologies into supply chain processes anything is possible.

8. Climate change will increasingly disrupt supply chains

Debate it all you want, but the science is in on climate change. And this global reality is adding risk and complexity to international supply chains. The increasing frequency of extreme weather conditions will continue to disrupt transportation, availability of raw materials and labour.

In the last two decades associated costs from supply chain disruption due to extreme weather events has grown staggeringly, averaging tens of billions of dollars per year.

Particularly susceptible commodities include agriculture products and oil & gas, but all transportable goods will be at increased risk of weather-related supply chain disruptions in 2018. Businesses need to be prepared to weather these storms. Building more resilient supply chains with built in safeguards is no longer an option. Companies can do this by diversifying their supply chain with alternative suppliers to lessen the impact from one disrupted vendor, or suppliers concentrated in one region.

In contingency plans, supply chain managers should also look at different transportation options and determine how goods would travel if one method of transport was disrupted. Having backup routes and transport options available at the ready will allow companies to act fast in the case of disruption and reduce the financial and consumer impacts.

We would be remiss to talk about the effects of climate change without mentioning the efforts being made to reduce them. Joining big names such as Unilever, Procter & Gamble, PepsiCo and General Mills in incorporating sustainable practices in your supply chain can save you money on packaging, waste and logistics and reduce your company’s impact on the environment.

That will look good on your ledger and your global reputation in 2018.

The post 8 Ways Supply Chain Management will change in 2018 (Part 2/2) appeared first on Trade Ready.

Oxford University estimates 47% of U.S. jobs are at risk of being replaced by robots within the next 20 years. Other estimates predict that the majority of jobs requiring basic repetitive skills, including manufacturing jobs, will be automated.

These estimates also conclude that two-thirds of white collar jobs will be lost to automation within that same time period. This includes several levels of global business professionals, from banking and finance and legal professionals to researchers and marketers.

There is reportedly a 65% chance that a child born today will grow up to work at a job that currently doesn’t exist. Though I am an optimistic person, I worry about the implications of these fascinating statistics on the economy and on international trade.

We are soon going to be living in a society where there won’t be enough work for everyone. More importantly, many of the remaining available jobs, even in white-collar industries like finance or law, will be paid less and require less responsibility, critical thinking and high-level skills than an average job today.

Though we are all born with different aptitudes and IQ levels, society has so far done a fairly decent job in providing work for the majority of the population. Even though job satisfaction levels are at an all-time low, most of us can still find work to put food on the table. Low-skill work involving heavy repetition often has a very low job satisfaction rate, but ultimately provides jobs that are essential to the economy and employment rate.

As these jobs are increasingly outsourced to lower paying countries, or replaced altogether by technology, what happens to the people who once held them?

The new industrial revolution will affect young professionals

We are now into our fourth phase of industrial revolution. The first one, which centered on the invention of steam engines (1817-1865), pioneered industry, and electric power brought the second revolution from 1865-1914. The air travel era (1914-1973) is now considered to be the third phase.

In our current phase, with the invention of the Internet and other related technology, we are seeing changes in our lives that are unprecedented in the history of mankind.  The good news is that millennials today are the savviest, best-educated generation to date. The bad news, is that they’re also earning less than ever before.

The average earnings of adults aged 18-34 between 2009 and 2013 ($33,880 USD) is the lowest since 1980, the New York Times reports. Many manufacturing, blue-collar and low-level white collar jobs which supported America’s international trade have been replaced by technology or outsourced. As a result, there are fewer stable, well-paying employment opportunities.

Many young professionals are unable to enter into the higher echelons of the workforce immediately. Instead they are forced to scrape together low-level, poorly paying work to support themselves, a phenomenon often referred to as “underemployment.”

Even high-level professionals may be under threat from technological change

The Internet of Things (IoT) is also connecting humans with devices to make our lives easier, and many tasks can be completed more efficiently than ever due to advancements in manufacturing engineering.

Robots are still far behind in terms of human intellectual levels, serving to make people’s jobs easier, rather than replace them. What distinguishes them, however, is their seemingly infinite ability to share and learn. Imagine millions of robots working on the same job and documenting their learnings in a cloud environment. This information sharing and machine learning could potentially outclass human intellect within a matter of years.

The counter-argument is usually something along the lines of: “Okay, I can probably order a burger through a robot, or even book an appointment or run some numbers through one, but what about skilled global trade roles such as logistics managers, trade lawyers, marketing executives, or CEOs?

These professionals not only have the theoretical knowledge, but also the ability to make intelligent decisions based on their assessments. Robots, on the other hand, have to depend on past data and are very limited in their decision-making capabilities.”

New technology is enabling a DIY-style international trade mindset

With the plethora of information available online, however, the need to consult a professional has been minimized in many cases. For example, prior to meeting up with a lawyer,  I have already drafted my case, minimizing the time spent on paperwork.

Doing business internationally is becoming easier due to access of information. This is leading to less autonomy for many professionals than they have enjoyed throughout the centuries. Now, professionals may not be the only expert in the room when dealing with the client, and instead can act as more of a facilitator. Software automation is helping people to do everything from filing taxes to planning travel, and therefore reducing the related service jobs.

I learned how to incorporate and trademark in a foreign country solely through guides available online, and then did it successfully without any issues.

You can research the latest trending items, source a manufacturer and then ship the product directly without even physically touching the product. And you can do this from anywhere in the world, all without the help of an experienced professional.

I was selling products made in China to Australian customers through a U.S. warehouse while sitting in Canada. There are even more complex examples out there.

The Internet is enabling far greater levels of globalization than ever before, all without the help of specialized professionals.

Worried about these big changes? There’s good news and bad news

Big Data has been a buzz word for a few years now, but we haven’t been able to fully exploit its potential because it’s not consolidated. When it comes to much of the latest international trade news and research, it’s impossible to keep up with all of the best information out there. Other human import/export professionals may have trouble keeping up too, but soon robots will have no problem doing this.

Today, we trust humans more than we do machines for intellectual problems, but this could change. Once robots know more than us, they will be able to analyze data and make predictions much more accurately than human professionals because they will be able to read, analyze and interpret far greater amounts of data at a significantly faster rate.

So in the future, a robot might diagnose a supply chain issue, a legal problem or financial irregularities, research similar issues and how they were solved, analyze all possibilities and then present conclusions and recommended courses of action. The supply chain professional would then simply have to read through the robot’s report and choose whether or not to approve the recommendation. Such an approach could cut an estimated 60% of the current jobs in manufacturing.

Use automation as the fuel to strive for more in your career

While I remain concerned about how automation may improve the lives of the socioeconomic elite far more than average people, I think that it will bring greater efficiency into our lives and significantly lower the cost of delivering services. This will allow people to have access to things they never had in the past, such as medical surgeries, drugs, travel, or legal services.

The bad news is for the people who are not interested in personal growth and want to stay within their comfort zones. There is no place for marginal work in the future. So get ready to expand your skillset, improve your technical knowledge and work alongside increasing numbers of robots and automated systems as you find your niche in the changing employment landscape.

In a decade or two, we will be able to classify people in two categories: people who tell computers what to do, and people who are told by computers what to do.

If you know which side of those two categories you want to be in, start changing now to ensure your place in the international trade world of the future.

The post Are you at risk of being replaced by a robot or automated system? appeared first on Trade Ready.

The spread of disruption and innovation in supply chain technology has now reached the ocean freight industry.

More than 90% of international trade commodities are transported via ocean freight, and the industry has seen its fair share of disruption over the years, including the creation of the container and more recently the mega-ship.

However, with global trade increasing over the years it has become increasingly difficult to maintain visibility and efficiency throughout ocean freight operations.

Indeed, the Port Technology periodical recently quoted Martin Stopford, Non-Executive President of Clarkson Research and Author of Maritime Economics as saying that “a fleet of ships should be run the same way BMW runs a car factory”.

As a result, like every other segment within logistics, the ocean freight market is undergoing major advances.

Introducing the “Smart Ship”

Think of a smart ship as a giant smart phone. Smart ships are being built with the ability to communicate with other vessels, ports and partners.

In 2015, Hyundai and its partner Accenture announced plans to design a ship that will include a network of sensors and analytics software to improve port logistics and maintenance, as well as reduce running costs.

Also in 2015, CMA CGM equipped one of its 18,000-TEU vessels with Traxens technology, which allows containers to communicate with the vessel by using built-in relay antennas.

The system collects data on location, temperature, humidity level and vibrations, and can report impacts, attempted burglary, and customs clearance status in real-time.

Furthermore, it can remotely control and adjust the temperature of refrigerated containers and will allow resource optimization for routine inspections.

In addition, Xvela has created a cloud-based vessel stowage and collaboration platform for ocean carriers and terminal operators.

In March 2016 it announced a pilot program in which Hamburger Hafen und Logistik AG, PSA International, DP World, Modern Terminals Limited, and Port of Tanjung Pelepas, along with ocean carriers Maersk Line, MCC Transport, Orient Overseas Container Line, Nippon Yusen Kabushiki Kaisha and Hapag-Lloyd have agreed to participate.

The purpose of the pilot tests are to provide visibility of stowage planning-related information for both terminal operators and shipping lines, and better connectivity between carriers, terminals and partner organizations.

Terminals will be able to access departure stowage plans as ships leave prior terminals, allowing them to allocate resources and resolve potential issues while carriers will have transparency of terminal operations and the ability to share in real-time with partners.

Book, compare and track ocean freight from the comfort of your living room

For users of ocean freight, the ability to book and track ocean freight has greatly improved. Startups such as Haven, Freightos, i-Containers and Kontainers all provide online platforms for users to compare rates, pick carriers, book shipments and track from origin to destination.

The bonus is that this can all now be done from the comfort of a home, office, coffee shop – literally anywhere and at any time.

By utilizing such platforms, the playing field between large shippers versus small shippers is levelled, thus increasing competition among ocean transport companies.

Virtual reality, drones and self-driving ships: the future is here!

The outlook for the ocean freight market looks to be something out of a Jules Verne novel. Imagine an autonomous ship transporting goods from Singapore to the Port of Vancouver!

The marine division of Rolls-Royce Holdings is actually working on this, and is said to be about 10-15 years from achieving this goal.

The company has already developed a virtual reality command center, a first step towards autonomous ships whereby captains can remotely control multiple ships from onshore.

Humans would still need to conduct maintenance and repairs when a ship comes into port, but even this could eventually be handed over to robots.

Finally, drones are already being embraced by the market and will likely increase in use. According to a Wall Street Journal article, Maersk is looking to use drones to cut the cost of supplying ships at sea.

According to its studies, Maersk notes it could save up to US $9,000 per ship in annual operating costs by moving items such as mail, medicine and spare parts by drone. The company is also looking at stationing drones aboard ships for other tasks, like hull inspections.

Disruption and innovation in how we conduct business, regardless of industry, is occurring at a rapid pace.

How we once viewed supply chains, the underlying basis of how commodity-based business is conducted, is changing dramatically thanks to many technological advances.

The ocean freight market is no different. Perhaps this emphasis on innovation and disruption has come at the perfect time as the ocean market struggles with overcapacity, declining rates and aging ports in need of efficiency improvements.

The result will be a very different ocean freight market, but one that is much more responsive and efficient.

The post Get onboard the “smart ship” – innovation and disruption in the ocean freight market appeared first on Trade Ready.

Supply chains are becoming increasingly integrated and more intelligent.

Collaboration, knowledge sharing and learning are at the center of intelligent supply chain management.

New software and technology developments support end to end supply chain collaborative processes.

Innovative data management platforms allow global organizations and their suppliers to set common goals that incorporate key indicators for mutual improvement.

The availability of open source non-relational databases empowers companies to make real time decisions taking advantage of the 3 V’s of supply chain data: veracity, velocity and volume.

Suppliers and customers are more geographically dispersed than ever. Manufacturing trends are shifting as labor costs increase in East Asia, and omni-channel sales are creating diverse challenges for end retailers and logistics partners.

To maintain competitive advantage, lower supply chain costs, and enhance customer experience, global organizations must use technology and data analytics wisely.

Due to vast supply chain networks, and various new ways of reaching end consumers, large amounts of data are now available creating new challenges. It is not the use of big data that leads to better decision making in the supply chain management, but rather the use of this data in a smart way.

To build intelligent supply chains, global organizations must focus on the following data management techniques:

1. Start with the End in Mind

A solid data management strategy for global supply chains starts with the end goals in mind.

Big data refers to massive amounts of information that oftentimes come from structured and unstructured sources outside of standard enterprise management. Harnessing large volumes of data is a tough challenge for large and small enterprises alike, especially when less than 40% of US small and medium sized businesses utilize a fully integrated enterprise management system.

All organizations leave untapped knowledge in their internal and external data; the key is to identify where improvements are needed and the specific indicators that can help.

More data does not equate to better performance; it is the use of this data that leads to success.

Organizations must engage their suppliers, understand common goals to create a data strategy that empowers all actors to make mutually beneficial decisions and enjoy the paybacks.

A quick look at the grocery and supermarket industry points to various disruptions that players in the market must anticipate and manage proactively.

According to research from IBISWorld, “the U.S. imports more than half of the fruit and nuts sold in the grocery stores,” leaving these supply chains open to a variety of upstream risks. To maintain competitive advantage, supermarkets gather point of sale (POS) data, used in forecasting projections and inventory management.

Rarely is this data shared with upstream suppliers and logistics providers so all members of the network are prepared for action.

Furthermore, actors at the bottom of the value chain, such as small holder farmers and cooperatives, do not push information downstream to help retailers prepare for supply chain disruptions such as environmental damage or crop destruction.

This creates reactive supply chains, where partners are not prepared and the cost is passed down to end consumers. A better scenario would be to gather information from across the value chain, and in the case of foreseen disruptions find alternative suppliers that can temporarily fill the demands.

This knowledge is power.

2. Structure, Analyze and Share Findings Intelligently

Supply chain networks must be structured and governed for global competitive advantage.

Companies must be able to determine their readiness to compete and the right partners that can help them reach their growth goals.

Data platforms and predictive analytics empower company leaders and their network to visualize pains, waste and streamline processes. Visibility is a crucial operational capability in international trade.

When embarking on a supply chain optimization project, success requires a clear understanding of where the wastes and redundancies lie. The consumer packaged goods (CPG) sector in North America spends accounts for 7% of revenues on logistics management, yet logistics data is rarely considered during sales and operations planning process (S&OP).

This leaves organizations unprepared for variable logistics costs.

Companies that consider logistics in their initial S&OP conversations are better able to forecast their transportation requirements. This also strengthens the shipper-carrier relationship.

Carriers should be made aware of expected demand, cost pressures, time constraints and network expectations for delivery optimization.

Visibility established at the purchase order and sales order levels that tracks information through a dedicated transportation management system (TMS) helps optimize shipments, realize the total spend to distribute product to each customer and opportunities for cost reduction.

A first step to ensuring that shipments are tendered properly, routes properly optimized and delays communicated to end consumers in real time, is to collaborate with a trusted logistics partner that allows network visibility .

These efforts lead to improved business intelligence, cost cutting in transportation network and better customer interactions.

3. Create a Collaborative Learning Environment with the Right Technology

Too many global companies manage information manually.

This leads to entry errors, incomplete data and skewed analytics creating challenges with supply chain visibility and hindering business growth.

Data management can be overwhelming without the right partners. For example, retail stores are very good at collecting consumer information and forecasting sales, but they lack the ability to gather and analyze information from transportation networks.

Working with upstream and downstream suppliers on a collaborative knowledge-sharing platform can help streamline information exchange, provide real time information and reduce overall risk within the network.

This is especially important when collaborating with international shippers and freight forwarders. It is their responsibility to understand the variabilities in transportation information, ranging from container sensors, GPS or other tracking devices, and translate the information into metrics for their customers.

Through best of breed data exchange protocols, they can share this information with retail partners and update PO/ SO and SKU level data on a real-time basis. This can only be achieved if all members of the supply chain network are aligned along the same goals and understand the pains of other partners.

Data analytics does not require large amounts of data to be processed by one organization, in fact this is cumbersome, costly and not aligned with the core competence of most companies.

Service organizations are strengthening their analytics and supply chain visibility capabilities to support manufacturing, wholesale and retail partners in creating intelligent supply chains.

Information must flow through collaborative platforms upstream and downstream so all parties visualize risks, potential disruptions and can proactively engage in offering solutions.

As supply chains grow on a global scale, organizations will have to put more trust in their network partners and build value through long term relationships.

How are you using the data you’re collecting to improve your company’s supply chain performance?

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