By Aditya Kumar Gupta
Cognitive logistics is most definitely the way ahead in the current technological environment. Companies have been able to realise that a constant response to its operations is necessary in order to curb the loss of business. A rapid increase in innovation has brought companies to a point of constant research and development. The biggest focus of research being in Artificial Intelligence and its use in logistics and supply chain management.
Big, and large, data
What drives such a change is the sheer amount of data in the current market scenario. The market is growing faster than ever, and so is the number of consumers. This consumer growth has been spread across various platforms, but what is important is that almost every sector witnesses an exponential change in its consumer base on a daily basis. An example being the global cellular network which now has over 8 billion users. Such a huge number of users points to the incredible reach of this particular industry. It has managed to spread to a huge part of the population spread across varying environments. With this large consumer base, comes the vast data. Businesses are served with a huge amount of data about the environment which can constantly be used to figure out new ways to excel in the market.
The biggest change with respect to technological advancements has been in the field of supply chain management. Companies can produce different products using varied techniques, yet everyone needs to deliver their product through some means which must always end with the product being delivered to the customers. Hence companies need to figure out how to cut costs and make their supply chains much more efficient. As this is an unavoidable part of the entire business cycle.
They do it all
Moving on to more detailed examples it is imperative to analyse how the large businesses in this field have figured out ways to adjust to this changing environment. The kind of business too is an important deciding factor on how it needs to adjust its supply chain. A company can have a varied structure depending on it being a retail outlet, e-commerce, or even a logistics company whose primary task is building supply chains.
Walmart is the number one Fortune 500 Company in the world. It has one of the largest networks of large retail outlets spread across the world, selling products like fresh produce to large electronics. Hence, it is rather imperative that Walmart have an efficient supply chain. It has done so by partnering up with IBM to develop a device which facilitates end-to-end tracking of its shipments. With such a system in place, Walmart always knows the whereabouts of all its shipments and can easily track orders. Having a combination of an online and retail network, it needs to make sure that all the necessary products reach their desired destinations from all possible sources. This system is effective as it constantly collects information along with conveyance. Hence, Walmart is able to learn about geographical locations with higher demand and certain routes and means of transport which have proven to be more efficient than others. This significantly reduces delays and costs.
Other efficient players
Amazon has always been highly appreciated for being the initial venture into business using the new technology of the internet. Amazon has capitalised on the Internet to the fullest extent; virtually selling almost every product available in the market. Having a product line of such width requires a huge network of logistics, something which Amazon has mastered. Starting from the warehouses, where actual robots are used to locate products and aligning them to the shipment schedule, to the final delivery of products. Once drones are legalised for commercial use it will definitely not be long before Amazon implements them into its sales and delivery network. With such large transactions, Amazon is a party to a huge amount of data, which benefits its operations as well as the businesses it works with.
Alibaba too is no exception to a large e-commerce space. Alibaba’s primary focus lay in bulk shipments although now having shifted to individual consumers. Alibaba has constantly expanded its logistics network due to ever-increasing requirements. Artificial Intelligence is something that has and is bound to further the reach and expanse of its operations. Alibaba’s AI unit has reached such an extent where it has beaten a Stanford student at an English comprehension test. Truly an achievement for the developer team of this technology.
DHL is no exception to this implementation of Artificial Intelligence being a vital part of its operations. It had been instrumental in the using IoT to expand its operations. This involves the constant monitoring the products in transit down to the temperature of a particular product. AI too assists in DHL’s operations with efficient inventory planning and real-time upkeep of records. Having such a spot on system greatly enhances working efficiency and leads to reduced costs.
Beyond boundaries
Therefore everything boils down to the importance of digitisation in today’s day and age. Computers doing work of a repetitive nature with minimal skill involved is necessary to improve the overall growth and development of any business. Yet this work done by computers must always be monitored. As the companies mentioned above have done, integrating things like AI, IoT and robots into business operations has a huge bearing on the final outcomes. With an expansive network the market has today, having a good handle on operations is as important as having innovative products. There is no point if a product cannot reach the consumer in time. The amount of volatility in the market has gone up to unprecedented levels and in order to retain a strong consumer base, swift action is necessary. Such action is a definitive outcome of knowing where something is, and in what condition it is. This is the very role of Cognitive Logistics in the market, although this is only its current reach, who knows what new innovations might bring in the future.
Featured Image Source: KamiPhuc on VisualHunt.com / CC BY
Stay updated with all the insights.
Navigate news, 1 email day.
Subscribe to Qrius