Digitalization and the implementation of new technology are not always easy, nor always embraced.
Not least in the global supply chain, where some of the most orthodox industries exist. To what extent, and how companies in the global supply chain must embrace brand-new technologies – is a debate that is raging right now. OVL Container’s Sijia Chen chimes in with a people-centric perspective, urging companies to embrace new, digital technology that makes logistics life easier for, well, people.

Artificial Intelligence, automation, digitalization, data analytics – and many more tools – are all emerging to transform the global supply chain, as well as the ports, the companies and the people in it.

In several recent op-eds and articles across the international, industry media-landscape, logistics experts have debated what will ultimately drive innovation in the supply chain and boost competitiveness.

Broadly speaking, the schools of thought expressed are either that people will be the positive change regardless of technology (so, do not give in to any initial tech-hype!), or that the ones embracing and adopting new, digital technology, first, will be the winners (but do not forget about people along the way!).  Essentially, people are central in the ongoing development of the supply chain. I agree.

People-centric digital technology combats uncertainty

To truly place people at the centre of attention, as we embrace or adopt new digital technologies, we must address, what has had – and will have – the most effect on them.

In my experience, it is the amount of uncertainty and, frankly, chaos in the global supply chain as of late.

Today, freight forwarders, logistics officers and shipping managers handle regular industry complexities, such as unreliable schedules, unstable cargo flows, shifting customer demands and volatile pricing. But they must do so in a global supply chain that no longer follows predictable rules – in a global economy that is in a state of upheaval in many places. All of which makes the future, well, uncertain.

And people under continuous pressure make mistakes, burn out, or spend more time putting out metaphorical fires, than what they should be doing: forecasting, achieving commercial and personal growth, and – most importantly perhaps – cultivating customer relationships.

We all want more growth, optimised processes and a better bottom-line. Instead of more of the same, we should achieve this with tools that make life easier for people in freight, logistics and shipping.

We need to help everyone work smarter, not harder. Turn complexity and chaos into clarity.

This is why, people-centric digital innovations and technology would make the most sense. Tools that automate routine decisions, flag anomalies early, and provide data insights. All while supporting human intelligence. For there is no substitution for it.

Merging machine precision with human intelligence

Many companies have shown the world how to go about this in the best ways, possible.

And yes, some of the solutions and tools are based on Artificial Intelligence (AI).

One of the best solutions is the use of AI to forecast, where containers will be idle or in shortage, weeks ahead – to help reduce empty repositioning and improve utilization.

Another example is how new AI-models enable dynamic pricing in leasing. These tools adjust leasing prices in real-time based on equipment availability, demand, and market trends, leading to better yields and higher client conversion. This reduces much of the daily friction for, say, freight forwarders.

Additionally, we see how integrated booking systems have enabled companies to help free up teams of people to handle only the most complex issues, where human intuition and insights are required.

These are just a few examples of new digital solutions that are already shaping the competitive edge for digitally savvy players in the global supply chain. These are not foreign or future concepts, and what all the solutions have in common is how, they aim to merge human intelligence with machine precision.

And this is key! Because – embracing, say, AI is not just about replacement or automation – it is about orchestration. Orchestrating a logistics, supply chain and/or shipping industry that has less uncertainty and more clarity.

Where to start – and why

But where to start? There are almost too many solutions to mention, and with myriads of options it can be a daunting task to even get started implementing new, digital technologies – not least AI.

One way is to prioritize working with partners that have already adopted these technologies – and who have already weeded out all the bugs. Another way is to start one’s own transformation with these steps:

1. Utilise AI-enhanced ERP-systems
   Start by embedding AI into your ERP to automate container planning, invoice validation, and milestone tracking. This reduces human error and accelerates response time. A win-win for all involved.
   
   
2. Implement Predictive Analytics
   Embrace the use AI to specifically forecast volume trends, demands, and pricing volatility. This is very useful for professionals handling long-haul corridors, like China–Europe Trans-pacific shipping.
   
   
3. Embrace Automated Customer Service Tools
   Workflow-engines for booking updates, drop-off info, or real-time tracking can drastically reduce service burden for vendors and improve client experience throughout the supply chain.
   

Each of these steps can effectively help improve one’s efficiency without disrupting your core operations. And in my experience, they will amplify a team’s intelligence, instead of replacing it. Making life in logistics much, much easier.