As technology begins to take centerstage in global logistics, Nishith Rastogi, chief executive officer and founder of Locus.sh, reflects on the fascinating trends that will define logistics as much more than a support function.
In earlier days, logistics was only thought of as a function restricted to the military. The procurement of ammunition, the movement of the soldiers and the maintenance of facilities were the core components of logistics.
As markets developed and trade expanded, logistics became a function of day to day business. However, as important as the supply chains were, they were still considered a support function.
The emergence of supply chain management Supply Chain Management (SCM) is a term that gained prominence over the last decade. SCM includes any and every activity from the procurement of raw material to the delivery of the goods. Perhaps even more importantly, supply chain managers are now responsible for coordinating and associating with third party members like service providers, suppliers, and other intermediaries. Even customer experience has become an integral part of the logistics function.
With supply chain management now comprising of so many individual functions, it is imperative that the old ways of functioning are no longer adequate for supply chain managers. The traditional method of using human intuition for making decisions no longer fits the bills. With businesses expanding their horizons, and consumer expectations on deliveries continuing to rise, supply chain managers now need AI-driven solutions that can empower them with the accurate data to take business decisions.
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March - April 2019