How To Drive Sustainable Smart Logistics Operations

RISING spot rates, lack of container availability, driver shortages, skyrocketing customer expectations, the emergence of new fulfillment models, the pandemic, among many other disruptions, have strained supply chains like never before. It is imperative for businesses to adopt the latest innovations in artificial intelligence (AI), machine learning (ML) and data analytics for ensuring effective hyperlocal deliveries through suitable vehicle and resource assignment based on auto allocation and streamlining deliveries order clubbing capabilities.

Soham Chokshi, founder and CEO of Shipsy, a leading logistics software solution provider, shared his thoughts with The Manila Times on how to leverage technology for efficient end-to-end logistics automation.

The Manila Times (TMT): Please provide a handy definition/description of smart logistics. What features relate to the “smartness” or intelligence in the smart logistics platform? Does it necessarily have to require end-to-end automation?

Soham Chokshi (SCh): Smart logistics empowers global businesses to optimize, automate, track and simplify end-to-end logistics and supply chain operations. This includes express logistics service providers, manufacturers, retailers, eCommerce providers, on-demand and quick commerce delivery providers.

The “smartness” of the logistics management platform lies in its ability to provide complete visibility into first, mid and last-mile operations, leveraging automation to unlock operational efficiency and using real-time analytics to enhance decision making. The AI-powered platform could easily integrate with enterprise systems such as ERPs, TMS, OMS and more to improve resource utilization, boost delivery productivity, ensure rapid scalability of logistics operations, drive data accuracy and achieve much more. Smartness also refers to the ease of deployment. Shipsy’s “plug and play” platform could be deployed in less than two weeks and ensures zero business disruptions and rapid go-to-market.

TMT: How is it relevant today on both the demand and supply side of the economic equation? Why should we embrace a smart logistics management platform?

SCh: Growing demand for modern trade and on-deliveries is skyrocketing the need for online deliveries. According to CNBC, Southeast Asia added 70 million online shoppers in 2020 and would reach 380 million by 2026. In a span of one year, 2020 to 2021, the region witnessed a 12 percent increase in online shoppers.

We all learned from these disruptions that there is a critical need to make supply chains resilient and proactive. Hence surfaces the need to digitize supply chains and logistics operations using smart tools. This helps businesses manage risk better, absorb disruptions triggered by rapidly evolving customer and business needs, proactively manage emergencies, respond to changing market trends and accurately predict business outcomes.

TMT: What is the role of the technology in leveraging automation to scale hyperlocal on-demand delivery operations?

SCh: Meeting same-day or two-hour delivery SLAs depends on the pace at which the order gets allocated, rapid delivery scalability and faster delivery execution. Briefly, let me tick off how technology helps. Technology automates order allocation whereby smart logistics management tools could drive a net allocation rate of over 99 percent and shrink order fulfillment windows by 30 percent. It also automates route planning by which a smart logistics management platform increases on-time delivery volumes by 24 percent and increases deliveries per driver by 24 percent. There’s also automating driver management that pays off in ensuring delightful customer experience at scale that could boost customer satisfaction by 64 percent.

TMT: How then does end-to-end logistics automation drive process efficiencies and cost savings?

SCh: AI and automation-driven smart logistics management platforms empower businesses to optimize delivery costs, improve resource utilization and enable faster decision-making to ensure rapid scalability. For instance, such a platform considers multiple factors while automatically planning delivery routes. These include cost, fuel consumption, logistics partner performance, order volume, delivery model and type, proximity from the store, and others. It brings down operational costs and boosts productivity per order.

TMT: You say it drives sustainable logistics operations? Does it cover all sorts of sustainability concerns including local and global environmental issues?

SCh: Every country has its own environmental policies from a compliance and regulations perspective. But from a logistics perspective, one needs to see the whole picture as it involves the movement of goods and packages across the globe. Hence, businesses must focus on reducing their carbon footprint by leveraging a smart logistics management platform to build sustainable logistics operations.

To reduce carbon emissions, such a platform shrinks miles traveled, increases first attempt deliveries and eliminates empty miles. It decreases trip volumes, improves resource and capacity utilization, lowers returns and curbs paper usage by digitizing documentation processes. Thus, it helps businesses drastically reduce their carbon footprint and build sustainable supply chain operations.

SHIPSY MEDIA CONTACT

arjun.alva@shipsy.io