Name : Resham Anand

PRN : 1800102010
Subject : Entrepreneurship Development
School : BBA Logistics & SCM

Practical 2

As an Entrepreneur how would you adopt Technology to make your

logistics business more efficient?

 Technology is finally solving inefficiencies in logistics, a sector that is

directly linked to economic growth. Till not so long ago, the trucking and
logistics industry was known for delays and unpredictability. An
enterprise or individual was never sure whether shipments would actually
arrive on a given date.

 Now, with most firms adopting technology-led tracking systems that

make it easy to predict when a parcel is expected, the sector is becoming
more streamlined.

 The industry — over 80% of India’s goods travel by road — is estimated

to be worth $215 billion by 2020, growing at a Compounded Annual
Growth Rate of over 10%, according to the government’s 2017- 18
Economic Survey.

1. Automation :-
Automation, which uses data-driven software to improve operational efficiency
in machines, offers a variety of solutions for the logistics industry — from
advancing package labelings to streamlining warehouse sorting systems.
Holland’s Port of Rotterdam, often called “ the most advanced port in the
world,” is a leader in the adoption of this technology. The port’s fully-
automated container terminals use computer- programmed stacking cranes to
unload cargo in ways that increase production, improve handling performance
and reduce labor costs.

2. Robotics :-
Robots, unlike automated machinery, are designed to perform several jobs at
once, making their applications in the logistics industry virtually endless. This is
particularly true of e-commerce operations, which require a heightened level of
speed and efficiency to meet the rapid growth of online sales.

Amazon set the bar in 2012 when it purchased a monopoly on Kiva robots,
starting what Bloomberg calls a “ robot arms race.” The robots, which fulfil
“one-click” orders in less than 15 minutes — a task that typically takes humans
60-75 minutes to complete — have reduced the company’s operating expenses
by about 20 percent.

To stay competitive, other companies are now racing to fill their warehouses
with similar models.

3. Wearable technology :-

Wearable technology could soon become a standard “must have” in the logistics
industry.

One success story comes from German logistics company DHL, which carried
out a pilot project at its warehouse in Bergen op Zoom to test the ability of
wearable technology to increase speed and reduce human error in warehouse
order picking processes.

Results of the pilot found that smart glasses like Google Glass not only
improved efficiency by 25 percent, but also significantly increased employee
satisfaction.

4. Drones :-

Drones have many promising applications for the logistics industry, most
notably in their predicted ability to coordinate new forms of express consumer
delivery.

Drones have the potential to have an immediate impact on our ability to deliver
products, both to dense, congested urban areas that would benefit from fewer
cars on the road and to rural locations.
Global companies and startups alike are eager to establish themselves as early
adopters of this growing technology. UPS, for example, recently entered into a
partnership with Zip line, a medical drone delivery startup, to begin delivery in
Africa — an initiative which TechCrunch says may have implications for future
commercial ventures.

5. Self-driving vehicles :-

Logistics companies have been remarkably successful in the early adoption of

self-driving vehicle technologies, thanks in part to the low regulations and
controllable testing environments afforded by spaces like storerooms and
shipping yards. As a result, many logistics operations currently employ self-
driving vehicles — from autonomous forklifts to small, driverless plant trucks.

. One leader of this movement is Otto, a startup led by former Google engineers,
who believe self- driving long-haul trucks may present fewer regulatory and
financial roadblocks than passenger cars.

6. Cloud computing :-

Cloud computing applications have the potential to provide vast efficiency and
flexibility options for the logistics industry — and trillion-dollar Silicon Valley
startup Flex port is leading the charge in this movement.

Billed as a “freight forwarder for the Internet age,” Flex port has made the
traditionally obscure and non- digitised operations of global shipping accessible
on a user-friendly, online dashboard. The company, which recently expanded
operations to New York, Hong Kong and Amsterdam, uses smart processes to
cut transaction costs, increase transparency and satisfy a growing consumer
preference for crowd- sourced delivery options.

6. Internet of things :-
The internet of things (IoT) allows physical items to be connected to internet-
enabled devices and systems.

Today, the logistics industry uses IoT in diverse ways, from using temperature
and humidity sensors that monitor supply-chain quality control to
experimenting with IoT technologies that can detect when a package has been
tampered with.

A report by Cisco estimates that by 2020, more than 50 billion objects will be
connected to the internet, presenting a $1.9 trillion opportunity for the logistics
industry — a stark comparison to the mere 5 billion objects currently connected
today.

As these seven technologies continue to carve out their role in the global
logistics industry, we’re likely to see previously unimagined levels of
optimisation throughout the supply chain — from manufacturing to
warehousing to delivery.