Digitalisation with AI will reduce carbon emission

Burak Ertuna, CIO, DHL Global Forwarding, MEA

The regional logistics sector is in the midst of a transformational phase, accentuated by an exponential increase in Electronic Commerce, E-commerce, and massive technological disruption across operations. Robotics and automation, Big Data analytics, machine learning, sensors, Internet of Things, IoT, and next-generation wireless play a critical role in the future of supply chains and are some of the changes being implemented in the wake of the pandemic.

Robotics, Big Data analytics, ML, IoT, wireless play a critical role in supply chains

In the logistics industry, organisations that fail to recognise the central role of digital adoption in their processes will be left behind. The goal for organisations should be to build a supply chain that is both automated and agile, capable of sensing, adapting, and learning as supply and demand conditions change. Customers are quickly coming to appreciate the benefits of faster delivery, higher service levels, and clear communication.

Alongside digitalisation, logistics companies must pay close attention to a human-centred approach to innovation. Digital systems need people to build, maintain, and improve them, and supply chain operations require close and continual collaboration between people and machines.

Organisations build both automated and agile supply chain capable of adapting to supply and demand changes

The rise of the expectation economy, where consumers expect their E-commerce orders to be delivered within a matter of hours has spurred E-commerce giants to build their own logistics digital platforms and regional footprint to handle the surge in volumes, as retail commerce moves online.

Alongside digitalisation, logistics need a human-centred approach to innovation

One-stop customer portals ensure that customers have full visibility, control, and access to all relevant information. These digital platforms do away with the need to print documents.

Completely transparent management of freight rates, offers, transport modes, carbon emissions, and all other relevant shipment data is readily available with just a few clicks and can be downloaded in detailed analyses and reports. Last-mile delivery, a crucial component of E-commerce fulfilment, can be made more efficient with the deployment of artificial intelligence and automation.

To handle expecting economy, E-commerce giants build digital platforms and regional footprint to handle surge

Dealing with the pandemic has taught business leaders the importance of adaptability and its linkage to resilience. They have been pushed to reconstruct their organisation’s crisis operations while fundamentally reimagining strategies and business models.

Digitalisation combined with artificial intelligence can increase sustainability in logistics operations. For example, artificial intelligence can optimise delivery and route management, thus speeding up deliveries, improving efficiency and reducing carbon emissions. Digitisation bundles and connects the available data across the supply chain, a process that is an important factor contributing to sustainability.

Last-mile delivery of E-commerce fulfilment is made efficient with the deployment of artificial intelligence and automation

For example, DHL Global Forwarding’s myDHLi tool, which is a fully integrated online platform for freight forwarding customers, provides complete visibility in the management of freight rates, offers, transport modes, carbon emissions, and other relevant shipment data.

Other tools such as a carbon calculator, also launched by DHL Global Forwarding as part of their goal to achieve zero carbon emissions globally by 2050, helps predict transport-related emissions for almost all shipment sizes and modes of transport, and provides alternatives to reduce or even completely neutralise the carbon emissions by using sustainable marine fuels.

Burak Ertuna, CIO, DHL Global Forwarding, MEA
Burak Ertuna, CIO, DHL Global Forwarding, MEA.

While artificial intelligence optimises delivery and route management, and reduces carbon emissions, digitisation bundles and connects data across the supply chain.