DC Velocity - March 2019

50 DC VELOCITY MARCH 2019 www.dcvelocity.com
Str
at
e
gy
LOG
I
S
TI
C
S

2

0

3

0

asked the respondents what next-generation technologies had the most potential to reshape freight transportation in the years to come. Participants identified the following four technologies:

; Autonomous vehicles, which could go a long way toward easing the driver shortage. The relief won’t be immediate, however, as experts say practical application of the vehicles is still at least five to 10 years out.

; Internet of Things (IOT) applications, which have the potential to solve visibility issues, boost service quality, and address some of the challenges of controlling freight out in the field.

; Artificial intelligence, which could automate some of the routine transportation decision-making and eliminate the need for staff members to stare at Excel spreadsheets to try to figure it all out. AI tools are expected to become widely available in three to five years.

; Predictive analytics, which tell companies what is likely to happen based on historical data. As noted above, some businesses are already using these tools to cut costs and boost service.

These approaches all have tremendous potential, but it’s
important not to overlook the people element, Gibson said.
To get the most from the new technologies, companies will
need to have the right leadership teams in place, he said.
“People realize that it’s not just about drivers. … You can’t
forget about your management team and your experts, who
are going to do the analytics, who are going to
work with all this data, who are going to man-
age it effectively,” Gibson said. “We really
need to bring in the right people and train
them well over the course of their careers
because it will have an impact on our
supply chain performance overall.”
As for what skills shippers will need as
they “push up” into their new respon-
sibilities, panelists pointed to a process
mindset, attention to detail, and a can-do
attitude. And at least one panelist under-
lined the need for a strong general business
background.

“Transportation professionals today have to be good
businesspeople,” said Caleres’ Reid. “You have to know
the entire business; you can’t just focus on transportation,”
she said. “You have to be good in the transportation disci-
pline—you have to know your blocking and tackling—but
you also have to be a good communicator and a good lead-
er. Plus, you have to understand the business operations—
accounting, budgeting, and forecasting.”
Employers can do their part by investing in professional
development programs, she said, noting that this might
include sending new hires to industry conferences and
arranging site visits to docks and DCs for office-based
workers.

CHANGING CONDITIONS MOVE THE GOALPOSTS

Those investments in people and technology are crucial for businesses in all sectors because the challenges facing transportation professionals are certain to change between now and 2030, the study authors found.

“We’ve all been taught … that change is constant and happens at an accelerating pace. We’ve watched this dynamic throughout our careers, but what is a little bit different and more intense here in 2018 is that pace part,” Agile’s Mac Donald said.

“If you take that concept of constant change and accel-
erating pace, and you marry it up to the technology we
have today and the technology that will certainly be coming
on tomorrow and the day after, then it starts to feel like
Mr. Sulu hitting the button on the bridge of the Starship
Enterprise and launching into warp speed. The pace of
change is fast, and keeping up is going to be a permanent
challenge.”
Keep an eye on the Logistics 2030 study to get the latest
insights from shippers and industry leaders on the best ways
to meet that challenge. Oh, and you might want to buckle
up … it’s going to be a bumpy ride.