(Commonwealth) _ The conclusion of the 2024 skating season at Red Bull’s Formula One headquarters in Milton Keynes serves as an intriguing backdrop to delve into the critical role that data plays in the logistics industry. Dexory’s Supply Chain Fast Track conference, attended by David Priestman, provided a platform for industry experts to discuss the significance of data-driven insights and practical steps for maintaining high performance in logistics. Rob Smedley, a former F1 race engineer with experience at Ferrari, Jordan, and Williams, emphasized the importance of understanding that “data itself has no value; insight is everything.” Drawing parallels between the high-tech world of Formula One and the logistics landscape, Smedley stressed that dealing with the complexity of logistics requires a well-defined data strategy.
While warehouses may lack the glamour of race tracks, they are emerging as hubs of innovation in the logistics sector. The conference shed light on the concept of ‘polycrisis logistics,’ addressing multiple concurrent supply chain disruptive events. Mike Fahy, CEO of Neovia, a global contract logistics provider, highlighted the key role of resilience planning. With operations in 20 countries, 80 hub facilities, and 8000 employees, Neovia specializes in service parts logistics for automotive, industrial, and tech customers. Fahy emphasized the importance of multi-sourcing, embracing technology, and robust cybersecurity as essential components of effective polycrisis management.
Neovia employs Dexory to create a ‘digital twin’ for each warehouse, providing visualization and interpretation of inventory stock. Technologies like Protex AI’s warehouse CCTV system, Athingz’s autonomous supply chain service utilizing machine learning, and real-time analytics contribute to enhancing the efficiency and safety of logistics operations. Fahy also highlighted the use of extended reality (VR) for training, leveraging technology from Elm Park Labs, and anticipated the utility of Apple’s Vision Pro.
Addressing the visibility gap in supply chains, Dexory pointed out that only 6% of supply chain managers claim to have full global visibility. Gaps in visibility can lead to issues such as out-of-stock or over-stocking. Dexory’s solution aims to increase accuracy to over 99%, surpassing what warehouse drones can achieve. The emphasis on accurate and timely data was echoed by Harry Chase, GE Senior Director for Central Materials, particularly when dealing with temporary overflow warehouses.
The role of generative AI in creating new strategies for logistics, such as in transport routing, was discussed. Chris Coote of Dexory highlighted that while AI may be less intuitive than humans, it provides fast answers and concepts, encouraging the industry to embrace limitless possibilities for building a smarter and safer ecosystem in distribution centers.
Paul Durkin, Chief Customer and Innovation Officer at Wincanton, a British third-party logistics operator, offered a practical perspective on robotics and automation. With the rising costs of labor and falling automation costs, Durkin argued that investing in technology is essential. He emphasized the need for a shorter payback time for equipment and acknowledged the challenges of choosing from a proliferation of software and hardware options. Wincanton, in the process of being acquired by CEVA Logistics, is reorganizing itself to lean towards IT and technology, recognizing the importance of owning the IP of software in-house. Durkin advocated for industrial collaboration, emphasizing the need for warehouses to evolve and accelerate their journey to become more efficient.
In the era of ‘Generation Logistics,’ the industry is witnessing a surge of innovation and competition fueled by data. Automation and robotics not only solve customer problems but also inspire colleagues and attract young talent to the sector. The industry’s ability to adapt, collaborate, and leverage data-driven technologies is crucial in ensuring long-term success and staying at the forefront of logistics innovation. As new entrants like Hived and everstox, backed by venture capital, drive innovation, the logistics industry finds itself in vogue, ready to embrace the opportunities presented by data.
