Technological Developments in Logistics

Rich Joseph is an experienced executive with over 18 years of success in the logistics and supply chain industry. He has proven track record of driving business growth through expert sales skills and exceptional operations management.

What are some of the major challenges and trends that have been impacting the logistics industry lately?

One of the challenges impacting the logistics industry is the shortage of labor and drivers, which increased during the COVID-19 pandemic. Navigating the growing demand for ecommerce and balancing personnel and people with technology has become both the trend and challenge for companies during this time.

Another challenge that we are seeing is increasing costs, fuel maintenance, wages, insurance costs, and compliance and regulatory costs which is going to plague the industry for a long time. It’s difficult for a truck to operate smoothly because of the cost of the driver being over two dollars per mile, breaking the operational expenses. However, with lesser demand and increase in interest rates as the pandemic subsides, people will have less disposable income rates. While the costs have dropped to some degree, they haven’t reduced a lot because the cost of owning and operating equipment and assets is still expensive.

Environmental costs, incurred by damage to the environment, is another challenge in the industry.

Consumers and companies are more environmentally conscious than they used to be. Many companies are really committing to reducing their carbon footprint and have established a date or time when they want to be carbon neutral. It’s a wonderful initiative and protects the environment but there are also costs associated with it.

Advances in technology, automation and big data are transforming the logistics industry and enabling companies to improve efficiency, reduce costs, and provide better service to their customers. That is a positive trend but technology has impacted many logistics companies’ ability to hire or lay off human beings. Companies need strong technology and management systems but they also need the right people to balance them well.

What are some major predicaments in the logistics industry?

One of the main ones is cybersecurity risks, so the more international exposure and technology a company has, the bigger target they have on their back for cyber-crime. Many large logistics companies have experienced some form of data breach, malware, or ransomware attack, within the past few years and they are becoming too common.

The supply chain should be secure from any technological attacks. The cost of prevention is a lot cheaper than the cost of reacting to a cyber-attack which can sideline a company for weeks. Sensitive customer data can be released and damage the company’s reputation.

The other problem is supply chain disruption due to disasters. For instance, the tragic situation involving the earthquake in Syria and Turkey can cause political unrest. As horrible and tragic as it is, it causes major disruptions in the supply chain and leads to uncertainty and challenges for logistics companies.

What is a project that you have been working on and what technological and process elements are you leveraging to make the project successful?

Our organization is working on acquisition, because of which this company has grown very large very quickly. While the growth is wonderful, especially in the current market, it comes with its own sets of challenges. The whole organization is working on them so companies can all work with each other and leverage each other better for resources, both from a technical and asset utilization perspective.

"Advances In Technology, Automation And Big Data Have Really Transformed The Logistics Industry And Enabled Companies To Improve Efficiency, Reduce Costs, And Provide Better Service To Their Customers"

We have made significant progress with the help of automation, streamlining technical communications, removing redundant behaviors, and focusing on process above all else. As a result, people know how to streamline processes and companies have a great process and experience. One of our goals is also to have a more seamless integration as we continue to expand.

What are some of the technological trends as far as the future in the logistics industry is concerned?

Automation is going to continue to be one of the focal points of any tech enabled logistics company, automating processes and working to apply automation in partnership with people. Something that our competitors are missing is automating things, processes, and behaviors, causing a negative impact on culture within an organization.

In relation to automation, robotics has been very cool to use, especially in warehouses, transforming many aspects of the logistics industry, both from warehouse operations to last mile delivery. By using robotics or pure automating repetitive tasks and reducing the need for manual labor, companies can improve efficiency, reduce costs, and provide better service to their customers and clients. It is also extremely important that the people in an organization are prioritized above all else for them to be successful.

Technology like Chat GPT are some outputs coming from AI and ML, which is both amazing and scary at the same time. We might be a year or two away from machines being truly smarter than humans. Additionally, drones and unmanned aerial vehicles have the potential to replace humans and revolutionize last mile delivery.

Change is scary to people, and the evolution of this industry over the past couple of decades has been nothing short of remarkable. Even in the future, there are going to be a lot of changes in the supply chain and logistics space.