The Covid-19 pandemic created surging demand and also unpredictability for the global supply chain. Three experts from IBM spoke at a Chamber webinar on 29 June on how the sector is adopting new technologies to keep operations running smoothly and to improve efficiency.
Karen Ko, Business Transformation Services Growth Platform Leader, said that the upheaval due to the pandemic had encouraged more freight and logistics companies to use technology including data, artificial intelligence and the Internet of Things (IoT). These enable better information sharing and cooperation among the different players in the industry, and help companies be better prepared for any future crisis.
Jenny Zhang, Blockchain Leader, explained how this technology in particular has helped businesses that have adopted it in the past couple of years. She explained that blockchain combines different technologies to enable clients to share information: while it provides increased traceability and transparency, at the same time it is also more secure.
Zhang explained that as many as 20 different participants can be involved in a typical shipping process such as loading a container full of goods – including the exporter, port, carrier, importer, bank and customs.
“The global supply chain is extremely complex, and end-to-end visibility is difficult,” she said. “Blockchain means that everyone from the shipper to financial institutions can share information securely.”
For example, customs processes and invoice reconciliation need a lot of information from different parties before they can be finalised. Previously, this would involve a lot of checking and phone calls, as well as handling paper documents. Using blockchain means that the relevant information is available only to the necessary parties, saving time while preserving security.
Chris Leung, Data and Technology Transformation Leader, said that the huge disruption brought by Covid showed that certain assumptions in any industry can change overnight. There has also been a shift towards more environmental concerns in recent years, with companies now having sustainable targets to meet.
“Overall, the theme of the game now is to build resilience against disruption,” Leung said.
Other ongoing issues include limited visibility across the whole supply chain, and finding ways to streamline processes to make them more efficient. “Operation cost is obviously a major pain point everyone wants to solve,” he added.
Another benefit of IoT technology is that it can predict when maintenance is needed, Leung explained. This is important as supply chain is an asset-heavy industry, and as well-maintained equipment is more reliable and less likely to shut down, this also reduces costs.
Leung then shared some case studies showing some of these technologies in action, including the Digital Twin of Rotterdam Port. In the port itself, sensors and beacons capture data on cranes, quay walls and water levels, as well as the movement of ships in the vicinity. The IoT technology then transmits this live data to the Digital Twin, so workers on ships and at the port can stay updated about current conditions.
In the past, ships would have to communicate with people in the field to get updates on the water level and to find out when they could berth. Using the Digital Twin can save them at least an hour in berthing time.
IoT can also help in worker safety and management, for example, it can warn in real time about unauthorized vehicles or other obstructions on site. At DHL, for example, technology in use in warehouses include sensors that can monitor the health conditions and location of employees, and therefore reduce the chance of accidents.
“The IoT technology can understand better than the managers about the health situation of the workers,” Leung said.