"It is the low margin industry," observed Davies. "As that freight is delivered, the money is transferred from one party to the other...all of that, it makes it easier for everyone involved."
"If there is a way we can eliminate disputes (through the use of blockchain) and get paid faster, and if the ROI is there, then you’d look at it the same way you look at any piece of technology," stated Arseneau.
Artificial Intelligence and Machine Learning
Prognostic data and operator safety are the two major areas of artificial intelligence that Davies has seen in the logistics space. He is finding that truck manufactures are increasingly building IoT sensors into every aspect of the truck. "We are not only going to track that truck, but we are going to also monitor the brake pads, transmission and axle. And all of those have a sensor on them."
Through artificial intelligence (AI), the mechanic can be alerted as to the need for servicing or part replacement. "There are a lot of prognosticators that are going to make it better for carriers," he said.
"Getting in front of a breakdown is incredible," agreed Arseneau. "Especially if you know 15 or 30 days before the breakdown occurs, and the system knows that whatever part will be required to fix that will be in stock so that it is readily available and we can get ahead of it and eliminate roadside breakdowns, which overall is going to speed up commerce, make it safer for drivers and overall a good thing."
Looking Ahead at Technology
As for what changes the next 10 years will bring, Brajkovich noted there will still be big trucks on the road. The big change he sees is in the order to payment cycle. His goal is to be able to have his CEO manage by poolside in 5 years, through the development of a "lights out" order process.
"It is not replacing people, it is changing their skill sets," he said. "Not only do we want to deliver stuff, but we want to make people better. We have automated our back end. We saw that people could move away from doing mundane processing and get into smart processing."
The panel did not anticipate, however, that customers would be willing to pay for technology improvements in logistics. Arseneau stated that a logistics provider has to have a business case for technology upgrades that does not anticipate price increases. Shippers are not going to pay more," she said.
One audience member pointed out that some major companies already have a requirement for complete supply chain visibility as a precondition of doing business. And as business decision makers increasingly experience the benefits and ease of use of consumer apps such as Uber and AirBnB, they predictably will have similar expectations from business trading partners.
NOVEMBER 2018