28 Apr Tackling Resource Shortage & Demand Surge in the Supply Chain Industry
While the entire world is beginning to see a deluge alike last year, a complete lockdown may not be happening as the supply chain is still active. Unfortunately, other challenges are looming. Since the beginning of 2021, there has been a significant increase in imports and exports. Imports alone in North American ports have been skyrocketing in a range of 25 percent and beyond since December 2020.
While the export import surge is a sign of economic recovery, the ports and airports do not have enough capacity to handle the large chunk of freight incoming. In several cities, there is a shortage of container trucks to transport the freight from the warehouse to the terminal.
Performing an Inventory Study
Now, as we think on the perspective of the North American logistics diaspora, what could be the major reason for this surge and gap? Yes, you got it right. Lack of Advanced information is the reason.
In order to tackle this situation, a stakeholder can perform an inventory study before letting in a fresh set of cargo move in so that the existing ones remain for long and all of these together do not get piled up.
Rethinking the Operating Model
Given the scenario, all businesses are forced to build a new operating model. Well, the rethinking would majorly involve creating a touchless work environment or a work environment with lesser touch points. One must also realize; lesser touch points would mean managing with a few on-ground tasks force while the backend works remotely. Therefore, the redefined operating model should consist of automated and integrated elements to get the process seamlessly.
Data Leverage to Improve Visibility
Visibility cues is a major cause of concern for all logistics stakeholders either maritime or air cargo. For example, the recent import and export surge is a result of working in an environment that has zero visibility. This surge could be contained well. Provided the operations are made seamless and the available data is well leveraged. Experts often complain that the stakeholders in the logistics industry are not utilizing data in the right way. Well, some are not even aware of the existence of this data.
Know the Success Story behind North America’s First Airport Cargo Community System
In this case, a cargo community system would have a large role to play. For example, a regulator would have given a new rule or an exemption. In a vast environment, all stakeholders may not be aware of the announcement itself. A cargo community system would ensure this data reaches everyone in the ecosystem. Therefore, the stakeholders would be rushing to leverage the benefit.
Creating a Transparent Supply Chain
Often transporters and freight forwarders complain that the status of a shipment is unknown once it enters an airport/seaport precinct. Sometimes, even loss of cargo is not noted by stakeholders inside the cargo complex. Due to this, the land side stakeholders are at loss and they demand a fair scheme to have a proper visibility of the supply chain.
A smart solution here would be to leverage robust technologies such as Blockchain. With Blockchain, the discrepancies involved in cargo handling and cargo movement can be resolved seamlessly. Added to this, 5G, Artificial Intelligence and Machine Learning too offers predictive as well as smart capabilities to leverage upon.
Read More on How a Port in India achieved Maximum Container Throughput
The logistics industry has survived for centuries breaking all the uncertainties. Being the frontliners of global trade, they pretty well understand the demand and supply gaps globally. Technologies such as Cargo Community System, Cargo Tracking softwares or a Container Tracking software comes handy in penetrating their efforts multifold. In turn, these technologies all their efforts are well planned and streamlined.