PCS Software Predicts Supply Chain Trends for 2021

AI and ML are the 2021 Ticket to Supply Chain Success

Article by Paul Beavers, Chief Technology Officer at PCS

Undoubtedly life in a post-COVID world will be different, and the supply chain industry is no exception. In the last year, online commerce has boomed, international trade faced new pressures, and sanitation at each step along the way has become paramount. These shifts will continue to impact logistics in 2021 and beyond.

Pre-COVID, many shippers, carriers and brokers were still dependent on analog methods like paper-driven processes and lacked real-time transparency into their operations. The need for efficient, digitized and ultimately safer logistics had never been more apparent, and along the way we are seeing a seismic shift in the industry.

With 2021 in full swing, transportation management platform leader PCS Software today shared insights on the transportation logistics industry at large and what technology trends we can expect to see over the next year.

AI and ML are the 2021 Ticket to Supply Chain Success

According to Gartner, 50% of large global companies are expected to be using artificial intelligence (AI) by 2023. AI and its related application, machine learning (ML), have the ability to automate large volumes of data and identify patterns to predict opportunities for improvement. This will be critical to success in transportation logistics to streamline and automate processes, optimize efficiency and reduce both costs and carbon footprint.

The freight industry generates massive data sets that only ML can handle. In fact, with more than 400 million class 8 shipments a year in the U.S., each shipment has thousands of pieces of data to be tracked. While no single person could keep track of this much data, an ML model can quickly and efficiently manage the data while recognizing ways to streamline operations. Freight never takes a break, and neither does machine learning, keeping up with the pace of freight and ensuring there are no lapses in coverage and support.

By leveraging AI and ML, supply chain leaders can:

• Better plan shipments, routes and mode selection to dramatically reduce empty miles (or deadhead),
• Find backhaul opportunities,
• Derive continuous moves to ensure highly efficient equipment utilization,
• Improve predictability for arrival times,
• Optimize labor resources,
• Automate two-way communication between drivers and dispatch, and
• Help determine best practices for loading quicker than ever before.

This year, we’re going to see AI and ML take off in an even more impactful way across the industry. But it’s important to note that digitization must be the first step when supply chain leaders approach incorporating AI into their operations. Without all supply chain data loaded in the system, AI cannot be leveraged to its maximum efficiency.

Touchless, Contactless Workflows are Here to Stay

Contactless has become somewhat synonymous with COVID-19, as we’ve learned to tap-to-pay, pick-up curbside and conduct meetings online. The supply chain was no exception to this trend towards touchless as safety at every touchpoint became a necessity. According to Commerical Carrier Journal, the use of technology to enable zero-contact transactions in the supply chain has been one of the biggest trends to emerge this past year.

Advancements like paperless transactions, electronic bills of lading and others are continuing to become an industry-standard in 2021. While these developments were already in play, COVID-19 accelerated the demand for contactless delivery and workflows because of sanitation concerns and the time-consuming nature of paper-based processes. But their benefits go beyond the pandemic and will have long term impact on the industry. 

By moving towards digitization, companies can optimize accuracy and simplify loan and freight tracking – ultimately leading fleets to more cash flow and stronger financial positions. Truck drivers can digitally upload paperwork, speed up payments and invoicing and increasing transparency throughout the supply chain.

In short, integrating this type of technology into carriers’ and shippers’ existing platforms will be the most efficient way to standardize these processes even as we move toward a post-pandemic world. And to drive this shift to digital, connecting logistics professionals wherever they are working from will be key.

Mobile Apps Optimize Operations to the Fullest

Digital platforms are predicted to change the revenue mix, enabling clarity along the supply chain to drive optimization of other business areas. Forward-thinking companies can leverage technology investments to drive customer-facing advancements with mobile applications.

According to FreightWaves, technology in warehouses, on board trucks and on smartphones is critical to automating processes, improving visibility into the shipment lifecycle and enabling faster decisions. Logistic processes are simplified with the use of digital applications to track the transit of materials, upload paperwork and speed up the process for order picking – leaving less room for human error.

As more transactions are digitized, logistics teams will have more flexibility in how they work. Mobile apps empower drivers to electronically transmit all key paperwork and help facilitate touchless operations as mentioned above.

With machine learning and mobile apps working together, reliable transport projections can be updated in real-time, increasing on-time deliveries.

Transportation Management’s New Frontier: The Cloud

Innovation is driving full speed ahead when it comes to transportation management, but organizations will likely feel stalled if systems are not yet cloud-based. In order to facilitate all of the processes and benefits listed above, transportation companies need to be operating on one simple, reliable access point residing in the cloud to keep everyone connected anytime, anywhere from multiple devices.

According to Logistics Management, last year Gartner estimated that over 90% of supply chain management spending would be allocated to cloud supply chain solutions. Further, Bart De Muynck, Gartner’s research VP of transportation technology, noted that “Cloud-based SCM continues to play a starring role in the overall digitalization of the supply chain and logistics functions.”

All-in-one, cloud-based transportation management systems lead to easy integration with your existing TMS system creating one access point to manage your entire business. For companies who want to take the next step toward digitizing their processes and optimizing processes, modernizing your TMS and taking operations into the digital age can steer your company into the future.

“The bottom line is that transportation companies must pivot toward these trends – AI and ML, touchless, mobile and cloud – to remain competitive in the market. Sticking with old processes and manual systems will ensure other companies push ahead in the coming year. As many have seen during the COVID-19 pandemic, shippers, carriers and brokers can’t afford to wait on adopting trends. They must act fast and strategically to keep up with market shifts and demands,” said Paul Beavers, Chief Technology Officer at PCS Software

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