We have
certainly come a
long way since the
ash cloud
Graham Little, Managing Director,
Evolution Time Critical
Cargoportal to effectively plug and play online bookings and the
like.
Modelling the future
Indeed, the current crisis could be seen as a testbed for how
things might develop in future.
Needless to say, modern big data is a powerful tool for logistics
managers all over the world to oversee restocking cycles when
things do start to move again. They can quickly fi nd out where
cargo is coming from and examine ‘heat maps’ to predict where
potential congestion might arise.
The other interesting thing about the COVID-19 crisis is how
we think about the use of technology in the supply chain for all
types of commodity. Hitherto mundane commodities, like toilet
paper and hand gel, which previously were deemed not to
warrant a high tech track and trace solution, have suddenly
become hot properties. Perhaps the lesson is that any goods, if
being moved signifi cant distances, can benefi t from systems and
IT to manage their supply chain more effi ciently.
One of the objections to sophisticated track and trace
technology, especially for low value items, is the cost of buying
the equipment, and the ongoing costs, such as access to cellular
networks and the limited battery life of devices. But less can be
more, says Ajay Rane, Vice President of Business Development at
Sigfox, which has developed a low cost track and trace solution
based on what he describes as a 0G (zero G) system. The
technology is modelled on the World War II ultra-narrowband
system.
Sensors are placed inside containers, in much the same way as
with other tracking systems, but because they use so little power
to communicate with the SigFox network, battery life is measured
in years, not weeks or months. The concept also has an advantage
in that it can be set up very quickly - useful in the event of
dislocation or sudden changes to supply chains. SigFox also offers
a global contract, so communication costs are measured in cents,
not dollars.
This system will not give the user a Uber-style, up-to-theminute
update on where the cargo is, but it will disclose, for
example, when a container has arrived in a port or when it passes
pre-determined waypoints.
much commoner today and
companies have contingency
plans that they can rapidly put
into action.
Niranjan Navaratnarajah,
Cargo Industry Director for
Unisys Asia Pacifi c, says that
valuable information can be
deduced from studying cargo
trends and other data from
previous upsets to the global
supply chain. This applies both
to the airfreight industry itself
and wider business. “You need
to look at your data and
deduce what industry is doing.
Move from being preventative
to being predictive,” he
suggests.
The other effect of the
COVID-19 crisis, adds
Navaratnarajah, is to give a
further push towards online
freight forwarding and
booking. With so many people
working from home, airfreight
fi rms that can offer their
capacity online will have a
great advantage over their
peers still wedded to telephone
and e-mail methodology.
Setting up online access is
not in the least a complicated
process now; carriers can use
systems such as Unisys’
The industry is
always looking at
ways to speed up
responsiveness
Anthony Akerman, Managing Director,
DAMCO UK and Ireland
Evolution Time Critical, was
the Fukushima nuclear
incident following the
Tsunami in Japan in March
2011, which badly affected
supplies of components from
Japan and forced car
manufacturers and others into
reconsidering their supply
arrangements.
Although not commonly
thought of as a disaster, the
fi nancial crisis of 2008 also had
much the same effect on
industry; manufacturers found
that some of their suppliers
were suddenly unable to
produce goods, leading to
considerable supply chain
disruption.
The good news
The good news, says Little, is
that thanks to modern
technology, business does
respond to crises and
unexpected events much more
effectively than it did a decade
ago.
“It’s much easier to get
visibility on the ground with
our transport suppliers; it’s a
lot faster for us to get
information to our customers.
And our customers also have
much more robust processes in
place. We have certainly come
a long way since the ash
cloud.”
Companies have also delved
into their supply chains much
more deeply, and know a lot
more about their suppliers’
suppliers – or even their
suppliers’ suppliers’ suppliers
– and events such as the
sudden shortage of specialised
paint that happened after
Fukushima through reliance
on a single supplier is less
likely today.
Dual sourcing from
different parts of the world is
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