Change is never easy. Particularly in business, legitimate new ways of doing things, and sometimes the curse of change for change’s sake, have usually been resisted as a disruptive threat. After all, it was “change” which initially threatened rotary dial phones, typewriters and adding machines. In fact, change is why there aren’t many blacksmith shops anymore.
Now, 25 years into the new millennium, in life as in business, technology is a crucial agent of change. The trends and facts show that, in many exciting ways, technology and automation are game changers in Edmonton’s transportation, distribution and logistics business.
Industry analysts admit that while the transportation and logistics sectors may have been slow and initially reluctant about embracing the changes, they are now fully on-board and continue supercharged about adopting innovative technology.
There is one lingering, familiar and legitimate concern. A familiar reason why some people resist change: the contentious concern about technology eliminating jobs and displacing workers. However, some Edmonton transportation and logistics experts suggest that those worries are misplaced and misunderstood.
For the logistics sector, the changes continue to be mostly triggered by e-commerce accelerating the flow of goods across supply chains. It’s such a hot trend that it is making digital transformation in business a matter of survival, not just an optional, good-to-have feature.
In Edmonton, despite some controversial and often unsubstantiated disinformation and stereotyping about technology displacing workers and killing jobs, it is not only a consensus but an understatement that, in many ways, technology is a game changer, re-defining how work is done and how business happens.
The use of AI, cloud computing and other logistics-relevant technology such as block chain and robots are becoming wide spread in transportation and logistics. Industry stats show that technology helps with efficiency, which translates into lower costs and prices, increased customer services and better risk management.
According to Edy Wong, associate dean international at the Alberta School of Business, and one of Edmonton’s most savvy and respected experts on all-things logistics, “The integration of different functions, from warehouse management, picking and packing and transportation planning, to tracking goods movements, centralizing data and many functions across the supply chain, are made possible and more efficient by using technology.”
Ross Ballendine, vice president of IT at Trimac Transportation, one of the largest providers of bulk trucking services in North America, emphasizes that technology continues to tremendously transform the transportation and logistics sector.
“Technology and automation impact transportation from many aspects like order entry, load planning, dispatch and driver communication, to in-cab telemetry data, hours of service management and more.”
One key aspect of the transportation and logistics industry’s new technology is Transportation Management Systems (TMS), which are software platforms that help businesses plan, execute and optimize the movement of goods with end-to-end visibility and control over their supply chain.
“Automation has allowed transportation companies to capture more data than was possible in the past, by pushing technology out to the cab of the truck and processing that data faster and for deeper insights,” he explains.
Edmonton’s Complete Shipping Solutions is a global 3PL solutions provider, with industry-leading SMARTT Shipping technology.
“The use of AI to improve efficiency is a big focus,” says IT manager, Kris Runge. “It reduces costs such as fuel or maintenance and speeds up deliveries through better planning of routes and loading freight into trailers. We have been working on automating the data entry portion of invoicing. The goal is to get the invoice to the customer faster with improved accuracy.
“A project in development is adding an AI chatbot to our system to answer many of the customers’ questions more quickly and help educate them, creating effective ways for us to improve customer satisfaction to help us retain those customers.”
He adds that important safety features utilizing AI help drivers be aware of hazards and potential equipment failures, and mentions that new methods of delivery, such as self-driving trucks and drones, are also being explored to create improvements in accuracy for tracking and estimated delivery dates.
The experts agree. Technology is solidly a logistics business win-win. It helps with efficiencies, which translate into lower costs and prices, increased customer services and more effective risk management.
Logistics professionals point out that cost reduction is also a key benefit of technology. Companies are optimizing routes, improving inventory management and significantly cutting down on operational costs. Automated systems also reduce labour costs and minimize the risk of human error. Although it is harder to quantify, technology also boosts customer satisfaction with faster and more reliable deliveries.
One lingering downside of technology is the contentious worry about killing jobs and displacing workers. On the contrary! Logistics experts beg to differ and highlight the positives.
Wong emphasizes the need for new-focus skills and the importance of the training it takes to succeed with emerging technologies.
“Of course, the new skills necessitated by the use of technology require upgrading of labour skills. They also create new positions in the logistics industry, specifically related to the implementation of technology. Changes in labour demand do vary. Some functions, such as driving and handling of goods, business communication and planning would not be automated to the same extent as other functions related to the manufacturing and distribution of goods.”
He cautions that the controversy about technology causing layoffs and killing jobs may be a misunderstood false equivalency.
“In fact, the overall level of required workers may actually not fall because there are now higher levels of overall activities.”
Runge acknowledges that automation replacing workers is a natural concern, and cautions that it may be a transition, not job-ending.
“Yes, there are going to be some areas where demand may be reduced, but that is likely offset with increased demand for staff with different skills on the technology side. Technology is a tool to help people be better at their job and allow more time to focus on more important tasks, not replace them.”
Wong adds that automation and technology are also a response to the shortage of labour.
“In many situations, like transportation and logistics, technology is labour replacing, not labour displacing.”
He cautions that without technology, the transportation and logistics industry would also have a harder time dealing with the significant demographic changes caused by the aging population.
Ballendine is positive and reassuring about the people-impact of technology.
“Some things will never change. People are, and will forever be, the key resource in any organization! To assume that the desired outcome of technology is to replace people is to be missing the richest and most enduring element of technology’s value proposition: the allocation of people to complex analytics and decision making that leverages judgment, discernment and experience. These are things that technology – even AI – can never replace.”
