REVVING THE ENGINES:

How Technology Is Propelling the Transformation in Logistics, Supply Chain and Transportation

Forbes Insights research speaks of a brave new world in transportation and related disciplines. Surveying over 400 senior executives from the field, Forbes Insights finds nearly two-thirds (65%) say logistics, supply chain and transportation processes are experiencing an era of rampant, fast-evolving transformation. And while the drivers are many, the most visible and disruptionladen is the evolution of both front-line and behind-the-scenes technologies. OUT IN FRONT

Grabbing all the headlines

are transportation’s mechanical marvels. It starts with talk of driverless vehicles and drones. As these technologies evolve, their developers insist they carry the potential to broadly automate transportation in the very near future. Yet today, all of this is more promise than practice. But other real-world advances are most definitely having an impact, particularly in terms of safety. Consider forwardlooking cameras and radar that can slow vehicles in the presence of hazards, along with other tools such as adaptive cruise control, rollover stability and blind spot warnings.

BEHIND THE SCENES

Less visible but already proving impactful today

are tools such as artificial intelligence and machine learning. Consider examples such as:

• TARGET: Cheaper, faster, better A recruiting ad for supply chain and logistics roles says: “We’re becoming more intelligent, automated and algorithmic in our decision-making. We’re constantly reimagining how we get the right product to our guests even better, faster and more cost-effectively than before.”1

• A MAJOR U.S. TRUCKING CARRIER: Accelerated

decision-making Here the logistics team handles a wide range of complex but repeatable tasks requiring massive data input to make the best choices. Optimal carrier selection once required 5 to 10 minutes analyzing thousands of possible candidates, routes and schedules. AI instantly reduces the number of choices to a handful, cutting decision time for its human teammates to a matter of seconds.

• LENNOX: Fine-tuning logistics This air-conditioning, heating and refrigeration giant is harnessing advanced technologies as an integral component of a supply chain overhaul. To complement steps such as moving stocking points closer to customers, machine learning is helping the group improve forecasting, optimize inventories and improve service.2

A CALL TO ACTION

The degree of transformation is profound. The impacts include better deployment of resources, enhanced visibility across the value chain as well as better predictions in terms of customer needs or even required vehicle maintenance. Unquestionably, the engines of disruption are idling. The question becomes—which groups will be pressing their accelerators? To learn more, read, “Logistics, Supply Chain and Transportation 2023: Change at Breakneck Speed,” at www.forbes.com/transportationinsights.