There is no doubt that every industrial sector will soon be driven by digitization. All companies will have to be proactive to meet real time customer requirements. Traditional companies with lack of technology knowledge have struggled to keep up in their digital transformation when compared with modern companies based on digitization and advance technology. The question is, is it too late to learn from and compete with platform-based technology companies? Traditional companies need to take advantage of their existing customer base and turn to computer algorithms to process real-time information to meet customer demands and minimize complicated operation processes that hamper the logistics-supply chain management industry.

Traditional companies still rely on outdated sales-marketing references, human operations and paper administration methods, which hinder their business by keeping their network small with expensive cost and slow operations. Many companies think investing in technology is expensive and troublesome, because it forces them to learn new business model and change accustomed operation processes. However, algorithm will be able to process multitasking requirements, detect problems, deliver solutions, and generate more business values than collected human capabilities. The traditional logistics business model is no longer sufficient enough to support a Global Digital Market. The rapid growth of Ecommerce Industry has increased competition, with requirements to transmit multiple channels of real time data across different time zones.

To help the transformation of the logistic industry with the new digitization business model, the government needs to participate in helping the technology transformation by providing better Internet connection and digitizing rules and regulation. The recent trade dispute of USA and China created confusion to logistics-supply chain industry in all continents. Most logistics companies were not prepared or informed and could not give proper advice to their customers, causing slow business decision-making. It would be much easier if trade disputes and their effective date were configured in algorithm digital solution and available to review online. For example, US could easily lower every made in China product FOB prices coming to US soil, apply a tariff %, and then post each product HS code category to include full product description.  International Trade disputes create tricky business because each country want an advantage to its GDP and for the people’s interest.

There is a need for companies in the digital era to create better business operating environments that allow greater and friendlier access of logistics and trade opportunities in different locations. By connecting and sharing resources together will help effectively serve the same consumer requirements under one technological business platform. When independent companies work under one common integrated system, it will be able to provide faster transformation into digital business environment and improved service level at a much cheaper cost. Operating a digital business flow will help standardize each operation function, standardize administration procedures and offer an operation infrastructure. This will help each company to better engage business activities much more effectively and efficiently with less human power.

Make no mistake–the arrival of technology algorithm to operate Logistics supply chain industry is already at your doorstep. Digital business transformation will continue to evolve faster for a long time to come.

Eddy Syaifulah, Director, Mahyu LLC