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E-commerce transforms technology that powers global supply chains

E-COMMERCE is bringing a boon to the logistics industry and simultaneously making supply chain technology more complex than ever in today's rapidly evolving digital era.

According to the findings of the Geodis 2017 Supply Chain Worldwide Survey (SCWS), global supply chains are transforming from the simple delivery of products to "crucial levers for business performance".

The survey revealed that 74 per cent of companies use four or five different transportation modes. "At the crossroads of strategy, marketing, sourcing, manufacturing, business development and customer services, supply chain has become the key strategic 'hub' of companies' activities."

Geidis-Europe/Middle East/Africa (EMEA) region sales director, Joseph Fordney, told New York's Air Cargo World at the Air Cargo Europe 2017 show that the maturity of the European market is "dramatic" and competitive. He noted that growing business in such a mature market is challenging and forcing the company to "differentiate by adding value".

His observations align with those of the SCWS report that surmises supply chains are moving away from a cost-oriented approach to a value-oriented one, in order to maintain the level of service demanded by more customers.

These demands, Mr Fordney explained stem partly from customers turning their backs on the expensive integrator model and instead look to rationalise costs without impacting service delivery, because "online businesses are very focused on the feedback".

Another Geodis regional sales director EMEA Florence Gautrais, was quoted as saying: "How to embrace digitalisation is a daily conversation', but added that a platform can't know it's customers."

For Ms Gautrais that final step will always require forwarding expertise.

"We have to embrace technology," Ms Fordney said in response to the emergence of online freight forwarding start-ups.

"I don't see a direct conflict between a company like Freightos and ourselves, or other start-ups. There's a lot of knowledge that needs to be leveraged by the community. There's tremendous experience at these companies, which goes beyond just a website or an algorithm."