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We live in a congested world, one where the biggest markets are also the ones that are getting even more crowded. And this congestion has a legitimate cost impact. According to the Centre for Economics and Business Research, between 2013 and 2030, congestion in the United States will cost citizens and companies $2.8 trillion. That's time and money spent idling our vehicles, paying for gas that's not even helping us get from Point A to B.
This is a daunting challenge for businesses. Companies have vital goods that need to be moved in an efficient way, and the roads they travel on are getting more crowded. How can companies enable growth and expansion, maintain a high level of service, and ensure business continuity and supply chain efficiency in this era of increasing congestion? The answers lie in a number of technological advancements and innovations.
The Internet of Things
One development that will definitely optimize supply chains is The Internet of Things - the ever-growing network of connected devices that can communicate with each other without the need for human interaction. As more devices are connected to the digital world, the amount of data available to businesses grows, as well. This means that supply chains will see great enhancements in track-and-trace; both shipper and recipient will have an even better idea of exactly where a package is, and when it will be delivered. And technology has already helped optimize shipping routes, consistently finding the fastest and most efficient routes that drivers should take when on the road.
Driverless vehicles
Driverless vehicles are another innovation that will greatly change the way products are delivered. One particular innovation is Peloton technology, which has garnered investments from companies in a number of industries. Peloton uses platooning technologies like radar, wireless vehicle-to-vehicle, and vehicle-to-infrastructure communication to enable two trucks to travel closely, one behind another, the second one of which is driverless. The technology helps optimize fuel usage and human resources, and in the future there may be more than two trucks in a given platoon - further driving cost efficiency.
Uber, but for deliveries
Uber, Lyft, and other ridesharing services have changed how people take taxis. What if the same idea can be applied to supply chain logistics?
A startup called Roadie is finding out. The idea is based on the fact that drivers often have a lot of empty space in their vehicles. How can people more efficiently use this available room? Roadie hopes to be able to compare a driver's intended route with the route a package needs to travel, to find a match. But if it's able to succeed - and the successes of Uber and AirBnB suggest it very well could - then its effect on shipping, particularly in residential areas, could be revolutionary.
Also, traditional truck brokers are experiencing disruption, as on-demand trucking platforms are starting to make an impact. They offer convenience, automation, and price transparency to customers - many of the same benefits that consumers experienced when Uber became an option over traditional taxi services.
Companies that adopt the latest technologies to create more efficient supply chains will improve their productivity, despite an increasingly congested world. And they'll be the ones best positioned for future success.
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