A critical component of any successful business is its ability to efficiently source and transport services or products. World-class manufacturing companies are keenly aware that continued success depends on their ability to deliver products and services at the exact moment a customer expects it.
For years the status quo of the logistics industry has been compiled of many large Freight Forwarders who excel at one specific sector or another. Through tribal knowledge of knowing popular flight options, reliable service partners, and knowing what routing worked on the previous shipment, they have built the playbook of logistics world. However, in today’s world, the status quo is not enough.
It is hard to predict the speed at which technology will impact logistics dramatically. From Geo-tagging capabilities to autonomous robots, technology will have enormous impacts on the logistics industry as a whole. Application Programming Interfaces or APIs will be at the center of connecting all these features into a single management system.
In 2015, the EDI (Electronic Data Interchange) was the core of advanced transportation management systems, but it is becoming irrelevant. Shipping APIs are taking over the shipping industry, becoming the most tech practice among shippers. In a research conducted with 200 supply chain managers, 85% are using EDI, but 43% were unsatisfied with them. 55% of the respondents believe APIs is a practical option to use instead of the EDI. The main reasons for the replacement are the need to function in real time, compatibility to use competitive TAT, and big data tech compared to EDIs.
Having the ability to track time-critical shipment is a necessary asset for most companies. Knowing where you aviation part is while your plane is grounded or having the ability to staff lab technicians to accurately meet specimen shipments being delivered to the hospital is an easy way to reduce operational costs and better schedule daily tasks. Currently, there are two ways to track time time-critical shipments: 1) a traditional method using lagging indicators and 2) a tech-enabled method using leading indicators.
Modern logistics management platforms face unique challenges that every business is forced to overcome. Some major issues can be cost of shipments, not compromising service, or strict requirements per shipment. Having a safe, reliable shipping company is imperative to increase workforce and decrease service failures.
By 