The demand for transparency in the logistics industry

An efficient supply chain provides a competitive edge to many businesses, but for the logistics industry, it is a must. The logistics industry encompasses anything to do with the movement of materials, supplies or products through any or multiple modes of transport. The industry is worth AUD 10.14 billion and accounts for 10% of our nation’s Gross Domestic Product (GDP), as reported in 2018 by the Australian Industry and Skills Committee. The industry demonstrates a strong position within the various markets however, it must adapt to changing demands to continue this. Transparency, end-to-end visibility and tracking are all terms that are becoming more demanded by clients. Increasing transparency in the logistics industry will not only increase trust between businesses and clients but also reduce costs associated with loss of valuables. 

Increased end-to-end visibility requires the logistics industry to divulge more information about the exact location and viability of consignments during transportation. The level of transparency and visibility demanded by clients is still not being met, causing both internal and external issues. Increased visibility doesn't only benefit clients, and their assurance of the viability of their assets but also greatly benefits the logistics industry itself. By utilising IoT and blockchain assisted asset trackers, the logistics industry can revolutionise their supply chain operations. With the use of smart asset trackers, businesses in the logistics industry will be able to assure quality to customers. Smart asset trackers can monitor parameters such as location, temperature, light, and shock in real-time.

For example, In February of 2019 YM Efficiency, a Taiwanese Shipping company that was transporting two Chevrolet Silverado's worth a combined $300,000 to Australia reported the goods missing in transport. YM Efficiency could only provide the approximate location of the lost cargo, narrowing it down to the Northern Shores of NSW, as reported by SMH 2019. Upon further private investigation by the Australian Maritime Safety Authority, it was found that there was plenty of lost cargo in those waters due to its rocky conditions. Through investigation, it was found that 3 sets of shipments that had passed those waters, all relating to different industry sectors had reported lost cargo. If shipping companies like YM Efficiency used asset trackers, they would have been able to know that they should avoid that area due to previous data collected. 

The logistics industry caters and serves to a huge variety of businesses across Australia. An inefficient supply chain can amount to significant costs. Each year stolen, or misplaced goods in the logistics industry account for USD 50 billion as reported by The National Cargo Security Council (NCSC). Although the logistics industry is greatly profitable, these annual losses hinder their growth and customer relationships. These issues of lost valuables can be greatly alleviated through the implementation of end-to-end visibility to increase the control businesses have on their moving consignments. The logistics industry is vital to the overall growth of the Australian economy, bringing in an annual revenue of AUD 96.65 billion through its services to other sectors as reported by the Australian Industry Standards 2018. Therefore, the logistics industry needs to have an efficient supply chain operations through increased end-to-end visibility. 

Adapt Ideations smart asset tracker KELVIN can empower the logistics industry to address growing demands for supply chain visibility. Through the utilisation of the smart asset tracker, the entire viability of the valuable assets is visible to clients. The capabilities of the asset tracker allow companies to monitor the exact location of the moving cargo. Adapt Ideations smart asset tracker KELVIN is also fitted with shock, light and temperature sensors that send near real-time alerts if any deviations occur. This enables businesses to track and monitor their cargo, and attend to any issues promptly. Asset trackers enable consistent communications between businesses and clients allowing them to build and maintain a good business relationship. The geo-fencing capabilities allow businesses will always remain in control and know where their assets are with Adapt Ideations asset trackers.

Get in touch with us today to enquire about our smart asset tracker solutions at enquiries@adaptideations.com.