Advances in technology will make the global supply chain run more smoothly in the future, especially when it comes to information sharing, experts tell Axios.
Yes, but: The new tech won’t solve the kinds of big problems that got us into our current mess.
Advances in technology will make the global supply chain run more smoothly in the future, especially when it comes to information sharing, experts tell Axios.
Yes, but: The new tech won’t solve the kinds of big problems that got us into our current mess.
State of play: These days, if you buy something online, you can usually track your package’s journey to your house. That’s not how the overall supply chain works, though. It’s a bit of a black box.
- It’s difficult to track goods as they move through their enormously complex journey — from raw material to factory to container to truck to ship and back to truck — before it lands at a warehouse, a store or your home.
- “There are dozens of startups now all trying to give shippers the type of visibility you get when you order something via UPS or FedEx,” said Willy Shih, a professor at Harvard Business School and sought-after logistics expert.
Data sharing across all the components of the chain is a key part of the White House’s vision for improving the supply chain, John Porcari, the administration’s port envoy, told Axios.
- “Most of the industry clearly recognizes that data sharing and improved cargo visibility will lead to better and more profitable operations,” he said.
- He pointed to efforts to improve port community systems, software that lets ocean carriers, terminal operators, truckers and railroads talk to each other and share info.
What’s next: Shih also pointed to machine learning as a way to make these chains more efficient.
- The goal is to create software that can discern patterns in the flow of goods into ports, so you can load and unload shipping containers more quickly — essentially a monster Jenga puzzle that can slow down the movement of goods.
- “There’s no such thing as ‘the supply chain’ — there are only an infinitude of supply chains,” said Christopher Mims, the author of “Arriving Today,” an in-depth look at how goods are shipped across the globe. “That’s what makes fixing it so complicated.”
The bottom line: There’s no tech miracle coming to save the day, but a lot of people are working to make things more efficient.
