Nowadays, we often come across the news about small and large tech companies entering the logistics market with an idea to improve some parts of it through the latest technology, which pushes the current logistics players to keep innovating in order to stay competitive. Although many companies claim that they will disrupt the industry, which is estimated to reach US$12,256 billion in Global Market Worth by 2022, only a few of them actually have the power to do so. During the last year, Transmetrics Blog mentioned several innovations from Uber and Amazon and discussed what kind of value both of the tech giants could possibly bring to logistics.
AI is currently one of the most overhyped topics. There is this misguided belief that one day, computers are going to be smarter than people. That they are going to take many jobs from us and that they are going to start a war against people. In actuality, computers cannot be people because they lack creativity, imagination, and they cannot think abstractly. Artificial intelligence is a set of algorithms which can provide very complex outputs and decisions based on incoming data. Therefore when you have an individual stream of data such as anything from transport shipments to video and audio data coming from a self-driving car, AI is the software that can make decisions that are much more complicated compared to the decisions the traditional software makes.
We are entering a long-awaited holiday season, which is going to transport us to the new year of 2018. We discussed many topics in logistics this year including Blockchain, Electric vehicles, Robots and even Autonomous cargo ships and we can conclude that 2017 was a great year for the technology in logistics. We expect 2018 to lead the innovations on the data side of the industry with technologies like Artificial Intelligence, Predictive Analytics and Blockchain. What do you think 2018 will bring to logistics?
As a means of cutting transportation costs from third party freight companies, eCommerce giant Amazon is rolling out its own fleets of air, road and sea vehicles. Amazon already boasts a 40 strong fleet of Boeing 767 aircraft, has registered for a license for sea freight and has had a patent approved for plans for a futuristic, high speed subterranean urban delivery system. The arrival of well funded, global tech players should set off warning alarms for traditional logistics companies, however, the real disruptive force isn’t from underground pipes, ships or planes. It is from effective use of data.
Today, we are happy to present you the newest format of our blog – “Transmetrics CEO Comments.” In this set of articles, our CEO will share his professional opinion on the concepts which emerge at the interception of logistics and innovation. The goal of the format is to unravel the misconceptions about the new technologies and to highlight the power that they can bring to logistics.
While we are almost ready to step into the new year, 2017 still has some aces in the sleeve for the logistics industry. This year, in a nutshell, was a year of non-logistics players entering the industry through innovations. For example, in May Uber officially announced the launch of Uber Freight to tackle the logistics market, Alphabet’s autonomous car unit Waymo brought the power of driverless driving to trucks and just this month Tesla presented its Semi Truck with specs that are beyond industry’s standard. The only way for the industry players to respond to such rivalry is to invest time and resources in new technologies like UPS did while exploring the blockchain. The shift in logistics is happening. The question is, as a logistics player, are you doing anything about it? As one famous Chinese proverb says: “The best time to plant a tree was 20 years ago. The second best time is now.”
Nowadays, we don’t get surprised when we hear about yet another company building an autonomous passenger car. The driverless car trend is already upon us – from Ford to Volvo, and to Mercedes-Benz, most car manufacturers name 2020 as the year when fully autonomous vehicles will be ready for regular use. The cargo industry is slightly behind the trend, but just last week Tesla unveiled their long-awaited Semi Truck. Tesla Semi has the 800-kilometer range and enhanced autopilot features that allow it to drive itself on the highway, stay in its lane and keep a safe distance from the vehicles and other obstacles around. With more automation examples coming to the transport and logistics industry, it is really interesting to see how this technology is evolving. While in-land automation is already being discussed and tested by the major players in the industry, the large autonomous ocean vessels is a new promising trend in the maritime sector. We would like to thank Freighthub and Dr. Michael Ardelt for providing us with the following article on Autonomous Ships. Enjoy!
Logistics is behind every product in our world. Electronics, apparel, consumables – everything is being manufactured and moved around the globe in order to be delivered to the end customer. Logistics is a hidden power which stands behind the global economy, supports it and influences it in a lot of ways. However, this power is not unstoppable, because of such unpredictable events as the famous cyber attack on Maersk, which paralyzed global trade for several months. It did not stop consumers from purchasing more products though. With an increase of e-commerce volumes that will double by 2021, more and more goods are going to be shipped around the world. The question is – Can logistics actually predict the economy by using the historical data from the industry?
Every month we select one company which represents a positive example of innovation in logistics and has the potential to alter the way the industry operates. This month, we would like to announce that Transmetrics selected Log-hub, the warehouse marketplace, as the November “Company of the Month” for its outstanding vision for the digital future of warehouse management. In order to learn more about the story behind the company, we asked Dirk Reich, a co-founder of the company, a couple of questions about the business. Congratulations, Log-hub!
As any other industry, in order to move forward, the logistics sector has to face the new challenges and find the ways to overcome them. With an increasing customer demand for products and services, logistics players have to be agile and think out of the box. If such questions as “What can we do to