Industries across the globe, be it e-commerce, healthcare, manufacturing, or agriculture, are particularly concerned about mitigating logistics and supply chain risks such as carrier delays, tampering of goods, natural disasters, theft, economic threats, etc.
Technology is known to offer a great deal of relief to logistics and supply chain managers, even though most of the advancement in this area is associated with the operational competences.
As import and export of goods are rising at a rapid phase, specifically for Asian regions, the logistics and supply chain companies are planning to speed up the usage of technology to alleviate risks.
Researchers from the University of Mannheim, the Swiss Federal Institute of Technology (ETHZ), and the University of St. Gallen (HSG) have submitted a paper called – ‘Technology-Enabled Risk Management Along The Transport Logistics Chain’ in 2009. It spoke about the advantages of collating telematics data through sensors, along with the analysis of big data for consistent and actionable insights.
The technology discussed in this paper is commercially available off-the-shelf and generally understood by industry professionals.
Other logistics and supply chain risk mitigation solutions on the market syndicate various technologies, including artificial intelligence (AI), machine learning (ML), the internet of things (IoT), and big data analytics, among other auxiliary expertise.
The entrance of 5G is also said to give new impetus to these solutions and drive more attention from the industry.
Today’s risk-adjusted logistics and supply chain network uses technology in a financially prudent way to mitigate problems in their operations. For instance, in the pharmaceuticals segment, given the nature of the business, and the consequences of failing to guarantee safety, aptness, and so on, this option with the interesting feature makes the most sense.
Sometimes, it makes sense only to pick those solutions based on the risks that require to be mitigated. In such cases, companies prefer to safeguard the goods, while overlooking theft and other perils with lower financial impact.
Therefore, the professionals in the logistics and supply chain industry exploring plausible technology must remember to consider particular factors such as the organization’s size, etc. before choosing any solution.