Work Smarter to Bridge the Digital Divide
By Margaret Kidd
The fog of a Covid-19 world is slowly dissipating and a new ecosystem of innovation and transformation of logistics technology and end-to-end supply chain is emerging. Suddenly we have become acutely aware that lift-off has taken place for the fourth industrial revolution during the chaos of what is now a new world order.
Approaching the 61st anniversary of President John F. Kennedy’s historic “Moon Shot” speech before a joint session of Congress that set the U.S. on a course to the moon, we are reminded by Kennedy’s words that “now it is time to take longer strides – time for a great new American enterprise.” Lessons learned from the space race, as well as recognition of the fragile nature of global logistics and supply chain operations has created the perfect storm to invest, embrace and leverage new technologies in our industry as we move towards an interconnected world of smart cities and intelligent freight networks.
Supporting the race to transform logistics and supply chain operations, the Wall Street Journal shares that supply chain technology startups raised US$24.3 billion in venture funding in the first three quarters of 2021, US$15.4 billion in full year 2020, US$13.1 billion in full year 2019, US$11.2 billion in full year 2018 and US$6 billion in full year 2017 (Dec. 30, 2021). This substantive flow of capital in response to global bottlenecks witnessed over the last 24 months of the pandemic has highlighted the critical nature of optimizing the work that we do.
No need to look farther than the U.S. port sector to consider how innovative technology, such as the port community system, could be implemented to optimize the efficient flow of cargo. Deployment of this technology would align with best practices adopted decades ago at European and Asian ports.
Shifting to the warehouse sector, adoption of technology such as robotics and artificial intelligence in distribution centers enhances not only the flow of goods, but also contributes to a safety environment by transforming human interaction. Early adopters of this technology, such as Amazon, have established a competitive advantage by investing and deploying automation in their facilities.
Pivoting over to the transportation management software sector, manufacturers, distributors, ecommerce companies, retail businesses and logistics service providers adopt this technology for executing and optimizing physical movement of goods.
Finally, in this brief review of innovative technologies, it should serve as no surprise that Texas has been the state of choice for test piloting autonomous trucking. Autonomy in the trucking sector serves to alleviate the driver shortage, enhance safety and fuel efficiency, and reduce congestion, according to the World Economic Forum.
Covid-19 was a wake-up call for our once overlooked industry. If we are to increase the resiliency and competitiveness of our global logistics and supply chain operations it will require major investment and, reminiscent of Kennedy’s speech in 1961, “the decision demands a major national commitment of scientific and technical manpower.”
It is time to invest for the digital future and train the workforce of the future by bridging the digital divide today.
Margaret Kidd is program director, supply chain & logistics technology at the University of Houston.
