Barcelona, December 24, 2020.- Maritime Gateway magazine has published a very interesting report on the advances of Blockchain technology in India, one of the most populated countries in the world, along with China. Blockchain will help overcome historical inefficiencies in India in this way:
India’s supply chain and logistics sector is undoubtedly one of the largest globally. It’s size, however, is not necessarily a source of comfort.
Pegged at $215 billion, and growing at a compounded annual growth rate of 10.5%, India’s supply chain is marred by an unbalanced logistics modal mix, high indirect costs, poor infrastructure, fragmented networks, and lack of technology adoption, notes a new report jointly published by the Confederation of Indian Industry (CII) and Arthur D Little.
While the Covid-19 pandemic has led to faster adoption of technology, it has also aggravated these supply chain issues. Consider this. Nearly 75% of companies worldwide are experiencing disruptions with most companies, unfortunately, not having any contingency plan to deal with this situation.
India’s supply chain is no different. Logistics cost in India stands at 14% of GDP, compared to the global average of approximately 8%. This has generated a competitiveness gap of $180 billion for India, which could increase to $500 billion by 2030, according to the report.
The report notes that India ranked 44 in the World Bank Logistics Performance Index, last released in 2018–way behind the US at 14 and China at 26. Other South-Asian countries such as Thailand and Vietnam also have high logistics costs. These countries’ costs reach 14- and 16-17% of GDP, respectively. However, they fare slightly better than India on the logistics performance index, with Thailand at 32 and Vietnam at 39.
Transportation represents approximately 40% of logistics costs, which amount to 6% of GDP. Transportation by road makes up the lion’s share of this cost, at about 64%, followed by rail at 30% and waterway and air transport at 5- and 1%, respectively. India has the second-largest road network globally, which totals 5.5 million kilometers, yet national highways account for less than 2.7% of the total network. This puts a severe strain on the national highway network, which carries about 40% of the road traffic.
The rail network fares no better. India has one of the largest rail networks in the world, spread over 1.2 lakh kilometers. However, the average speed of freight trains in India is 24-25 kmph, compared to 38-40 kmph for those in the US and China.
The report asserts that the slow adoption of supply chain technologies, such as AI, blockchain and IoT, remains a major shortcoming.
According to the report, digitization is no longer an option in today’s world. Rather, the entire supply chain needs to be connected by integrating physical networks with digital technology. The latest technology, such as geo-tagging, auto-capture, and big data, enables collaboration, better forecasting, and traceability along the network, which helps to monitor supply chains.
Technology-enabled forecasting helps reduce wastage along the supply chain by allowing organizations to manage demand- and supply-side shocks. AI, blockchain technology, and IoT will
bring breakthrough productivity gains in the supply chain network, the report notes.
The results are already showing in cases where these technologies have been adopted. For instance, automation in packaging has helped industries reduce the workforce by 20-30%, which has curtailed losses due to labour migration, according to the report.
The report cites the example of how Proctor and Gamble (P&G) used technology when a hurricane disrupted the company’s supply chain in New Jersey eight years ago. Hurricane Sandy, which hit New Jersey in 2102, disrupted production in the P&G factory that made 91% of its perfumes, according to the report.
To tackle the problem, P&G deployed a cloud-based platform for real-time information on production and external demand, which helped minimize the fallout. The use of advanced analytics and quick decision-making limited the plant’s downtime to two-and-a-half days. Further, in 2017, P&G used digital tools to predict which suppliers, plants and distribution centers were likely to suffer damage from Hurricane Irma in Florida. This allowed the company to prepare for contingencies and avoid disruption and financial loss, according to the report.
The CII – Arthur D Little report insists that Indian companies should adopt a similar proactive stance if they want to improve their supply chains.
Key findings of the report:
COSTS: Logistics cost in India stands at 14% of GDP, compared to the global average of approximately 8%
DISADVANTAGE: This has generated a competitiveness gap of $180 billion for India, which could increase to $500 billion by 2030
TECHNOLOGY: Supply chains are transforming globally by adopting Industry 4.0 trends including agile networks, disruptive technologies, end-to-end visibility, and risk mitigation Vs. risk management
AI / IoT: India can benefit from the experience of mature economies, which have used emerging technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) to enhance supply chain operations and resilience
DIGITAL To make India’s supply chain competitive, efficient, and resilient, Vision 2030 aims to pare logistics cost to 7-8 percent of GDP, optimize the logistics modal mix, digitalize 90% of supply chain operations, develop omni-channels, move towards green supply chains and enhance skill development.
- ChatGPT and Logistics
Barcelona, February 8, 2023.- Artificial intelligence, machine learning, ChatGPT, AI to generate content, AI for Internet search engines…In recent months there has been a lot of talk about these technologies…But can these developments benefit the logistics industry? Every computer expert has an answer. Today we mention a positive thesis about ChatGPT: - Five key IoT trends for the logistics sector
Barcelona, February 6, 2023.- RCR Wireless News magazine has published a diagnosis on the application of IoT (Internet of Things) technology in the logistics sector. The conclusions: - “Blockchain can help the freight and transportation industry by redesigning delivery processes”
Barcelona, February 1, 2023.- India is the most populous country in the world with 1,417 million inhabitants. It has recently surpassed China. For this reason, logistics analyzes coming from India can be useful in other geographical areas: - How could supply chain directors – and their supplying partners – get back their grip on operations?Barcelona, January 30, 2023.-
- Maersk and MSC will discontinue their 2M alliance in 2025
Barcelona, January 25, 2023.- Maersk and MSC will discontinue their 2M alliance in 2025 as the two companies pursue different strategies. The 2M alliance allowed the two carriers to share cargo capacity in the Asia-Europe, Transatlantic and Transpacific trade lanes as part of a container shipping line vessel sharing agreement.There will be no immediate impact… Continue reading Maersk and MSC will discontinue their 2M alliance in 2025 - “We expect supply chain disruptions and price increases to reemerge in 2023”Barcelona, 23 de enero del 2023.-
- 6 ways AI is transforming warehouse operations
Barcelona, January 18, 2023.– Warehouse and Logistics News magazine has published the keys for warehouses to take advantage of artificial intelligence: - “Surface transportation and logistics companies reap significant rewards from technology investments”
Barcelona, January 16, 2023.- This statement is published by Supply Chain 247 magazine in the following analysis of technology and logistics: - Supply Chain Issues Impacting 2023 and BeyondBarcelona, January 4, 2023.-
- How Will Quantum Computing Affect Logistics?
Barcelona, December 21, 2022.- According to the magazine “More than Shipping”, the ability of quantum computers to solve complex problems will help logistics companies make more competitive and cost-effective decisions that will reduce costs and increase efficiency. - Ecommerce: “The industry was unprepared for this rapid shift to B2C”
Barcelona, December 14, 2022.- Inbound Logistics magazine has published an analysis of the logistical consequences of the ecommerce boom. Reflections for the present and the future: - “Blockchain is a valuable asset for providing shipping information”
Barcelona, December 7, 2022.- Business Blockchain HQ has published an extensive analysis on Blockchain technology in supply chains: - How soon will we see driverless trucks on the road?Barcelona, November 23, 2022.- Join David Liu, CEO and Co-Founder of Plus, for a discussion on where we are in the deployment of autonomous trucks generally, why Plus chose its evolutionary path to get to driverless trucks, the company’s commercialization updates, and what the future will look like with these trucks on the road.
- Will Blockchain allow the best logistics management?
Barcelona, November 16, 2022.- This question has been answered by Entrepreneur magazine with the following arguments: - “Market volatility, tightening labor, inflation, weather events, and supply shortages have a cascading effect on the global movement of goods”
Barcelona, October 18, 2022.- The magazine Supply Chain Quarterly has published an interesting diagnosis on the application of AI in the supply chain: - Retailers, logistics firms and other companies are turning to artificial intelligence, robotic process automation and robots to make supply chains more efficientBarcelona, September 20, 2022.- Artificial intelligence is definitely going to be one of the most efficient technologies for transport and logistics companies. This is what BiztechMagazine says in this report:
- 57% of the companies across the world believe that supply chain automation can provide a competitive edge as applications of AI can resolve problems…
Barcelona, September 13, 2022.- The company SoulPage has published a report on the functionalities of Artificial Intelligence in companies that are experts in the supply chain. These are the conclusions: - Artificial intelligence and reverse logistics
Barcelona, September 6, 2022.- bbntimes has published an interesting analysis on the application of artificial intelligence to reverse logistics. Their conclusions are the following: - How to effectively apply AI to supply chain processes to yield transformative results…
Barcelona, August 30, 2022.– Artificial Intelligence solutions are beginning to become popular. The supply chain is keeping an eye on this innovation, as this analysis published in the Deccan Herald News explains: - “Visibility is not just a convenient systems upgrade, it’s part of a greater movement to adopt a more unified perspective of the supply chain”
Barcelona, August 9, 2022.- Suppychain247 magazine has published an analysis of the visibility situation today in the supply chain with these keys: - Edge and 5G have become leading areas for investment across industries
Barcelona, August 2, 2022.- As reported by RTInsights magazine, 5G and edge initiatives are typically part of broader enterprise-wide digital transformation efforts.
Supply Chain Technological Trends 