What's next for the logistics industry?
Digital transformation is a major enabler, and is causing global logistics companies to implem...
The logistics industry is undergoing significant change.
Digital transformation is a major enabler, and is causing global logistics companies to implement new technology such as artificial intelligence (AI), robotics and automation, IoT and Big Data, among others into operations. This new technology has allowed firms to speed up processes and increase efficiency significantly.
By 2030, the logistics market is set to be worth around US$75bn, according to LogisticsIQ’s latest study “Next-Gen Supply Chain Market - Global Forecast to 2030.” This has seen a massive increase from US$32bn in 2019. The supply chain space today requires greater visibility and transparency in the data process, faster adoption of IoT, increasing investment in supply chain innovation as well as huge demand from e-commerce.
That increased demand in e-commerce has enabled robots to enter warehouses, sorting areas, in addition to now being deployed for micro-fulfillment and last-mile delivery purposes. Across the entire logistics chain, from order intake to customer delivery, it results in faster order fulfillment, greater order accuracy, reduced damages and improved labour productivity. Large retailers such as Amazon, JD and Walmart use robots to pack and sort items for warehouse automation which significantly increases efficiency.
AI helps to address several key challenges in the supply chain. It helps to analyse complex data in order to forecast future demand, as well as being deployed in supply chain planning and optimisation, including demand forecasting, inventory management, warehouse management and fleet management.
For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.
5 minutes with: Ivalua’s Sundar Kamak
Who are you?
My name is Sundar Kamak, I’m Head of Manufacturing Solutions at Ivalua. I’ve been with the company for around two years now, and I’m responsible for our industry solutions and our pre-sales team. Before joining Ivalua I spent almost 20 years in the source-to-pay procurement space, working for a number of providers. But I got my career started in manufacturing and supply chain, specifically in automotive and aerospace.
And what is currently taking up the majority of your professional time?
The last year I've been focused in helping organisations put together a digital transformation strategy, especially manufacturing companies, so they can continue to address some of the challenges they face due to the COVID pandemic.
The traditional approach of engineers designing their latest product then procurement going off to source no longer works
What are the biggest challenges facing your corner of supply chain?
We have a lot of clients coming from different backgrounds - aerospace, high-tech, automotive - and they’re feeling the pressure and the crunch. There’s a lack of product, lack of material availability, lack of resources, labour shortages. So, I work with the leadership in these organisations, try to understand what problems they're looking to solve and come back with Ivalua solutions that can help them address some of these challenges.
Where do the biggest opportunities lie?
If we look at manufacturing, it all comes back to procurement and supply chain being involved sooner in the process. The traditional approach of engineers designing their latest product then procurement going off to source no longer works. It’s important to treat suppliers like partners, which means you build trust, so they can participate very early on in the product design and product development process. It’s not done consistently in the manufacturing sector, but it will be key.