Enterprises normally outsource parts of their distribution, warehousing and fulfillment services to third-party logistics-service providers. However, with a complex workflow and nonstandardized service delivery, many third-party logistics providers in the market still lack an integrative logistics system like enterprise resource management and manufacturing execution system in the manufacturing industry.
In the next three to five years, third-party logistics providers are expected to explore new revenue streams, reduce costs, and lift their operational effectiveness to cope with the stiff market competition. All these capabilities will be propelled by smart technologies.
Formed in 2016, Comma Technology is leveraging Internet of Things technology to introduce its C-Link services, utilizing cloud technology and refined operational research algorithmic computing to provide optimization of cargo packaging, warehouse location and transportation routing through data digitalization in the entire logistics and supply-chain process.
Adopting algorithmic computing technology can reduce the walking distance within warehouses for workers by 30 to 40 percent, while the on-time fulfillment ratio of business orders can be maintained at 10 to 20 percent.
As for the deployment of transportation vehicles, smart-technology applications can raise the ratio of transportation trucks’ carrying load by 10 to 20 percent, and logistics-service companies can slash total transportation truck deployment, as well as daily mileage, by 5 to 10 percent.
As a result, third-party logistics companies can trim transportation costs by up to 25 percent when adopting various smart technologies.
Shenzhen-based FRD Supply Chain has 120 corporate clients from more than 20 industries. Without digitalization, the company would have a difficult time tracking the entire logistics-service process, which involves up to 5,000 daily business orders.
After adopting the sensor-powered dashboard platform in April 2019, FRD Supply Chain is able to enhance the accuracy of its business order quoting system by more than 80 percent, and cargo stowage efficiency by 30 percent. At the same time, transportation costs can be reduced by 25 percent.
