Imagine a world where customers no longer need to anxiously call for package updates, but can instead track real-time location and estimated arrival times from their smartphones. This reality is transforming customer satisfaction while dramatically improving operational efficiency. Mobile technology is reshaping supply chains at unprecedented speeds, creating opportunities for businesses ready to embrace this digital transformation.
Where supply chains once operated as isolated islands of information with sluggish data transfer and delayed decision-making, mobile technology has demolished these barriers. Information now flows freely between all nodes of the supply chain, from warehouses to the crucial "last mile" of delivery. This mobility has become the key to enhancing efficiency, reducing costs, and optimizing customer experiences.
Mobile Technology: The Powerful Engine of Supply Chain Advancement
Businesses are increasingly investing in mobile solutions to achieve shorter delivery cycles, greater supply chain transparency, fewer errors, optimized transportation networks, and more precise inventory management. These combined advantages create smarter, more efficient operations in today's competitive markets.
Bob Hood of Capgemini explains: "Where drivers once relayed information like pickups, drop-offs, or adjustments via radio or vehicle terminals, we now have continuous data feeding into dynamic optimization engines. This creates highly efficient routes while giving shippers deep insights into vehicle and driver performance."
Mobile solutions also improve communication across transportation networks while providing more accurate productivity measurements. "Mobility is creating entirely new models for vehicle communication," Hood adds, "while introducing new complexities beyond warehouse operations."
Six Mobility Trends Transforming Supply Chains
As shippers look beyond warehouse walls to improve processes, reduce costs, and boost efficiency, mobile technology plays a pivotal role similar to warehouse wireless solutions. Here are six key ways mobility is reshaping supply chains:
1. Smarter (and Costlier) Vehicle Communication Systems
Where driver-company communication once happened only after actions (like deliveries) or during problems, real-time interaction now allows constant monitoring of vehicle operations, routing, scheduling, and key performance indicators.
Hood cites a client example: "They implemented real-time, same-day optimization tools for their fleet while upgrading onboard computing capacity across dozens of locations. Though requiring driver training on new cab equipment, the long-term benefits outweigh the substantial initial investment in hardware, software, and system integration."
2. The Trucking App Explosion
Frost & Sullivan predicts the mobile trucking app market will reach $35.4 billion. With over 100 North American trucking apps currently available, analysts estimate only about 30 will survive by 2020. The Uber Freight launch has intensified competition, forcing rapid innovation.
Analysts note mobile freight apps will significantly disrupt North American transportation by: improving small fleet asset utilization; reducing broker fees and logistics costs; easing capacity constraints; cutting 20 billion empty miles annually; and lowering emissions.
3. No Longer Just for Enterprise
David Krebs of VDC Research observes that fleet mobility solutions, once affordable only to large corporations, have become mainstream. Whether needing proof-of-delivery, fleet management, workforce solutions, or resource tracking, logistics operations of all sizes can now implement mobile solutions.
"Adoption rates will grow exponentially as technology penetration increases," Krebs predicts. "Mobility is becoming accessible to shippers regardless of scale."
4. Identifying Performance Gaps
Real-time shipment visibility represents the holy grail for logistics managers, and mobile technology makes this achievable. With accurate data, shippers can quickly identify performance gaps, enhance agility, resolve inventory issues, and make critical business decisions.
"Visibility and inventory accuracy remain significant challenges," says Krebs. "In retail supply chains particularly, mobile technology proves invaluable for transport optimization, load planning, and management functions."
5. Data Expansion Demands Mobile Solutions
Simon Ellis of IDC Manufacturing Insights notes growing interest in IoT sensors interacting with mobile devices, especially for perishable goods monitoring trailer temperatures, battery levels, and other cargo-impacting factors.
"Sensor-generated data enables better business decisions," Ellis explains. "As real-time information becomes more available, insights from data analysis grow exponentially, expanding demand for field mobility solutions."
6. Rising Customer Expectations
Customers increasingly expect immediate access to shipping data without phone calls or emails. "This requires robust mobile technology," Ellis states. "It's raising the mobility benchmark, compelling shippers to provide this level of insight."
Achieving this demands full supply chain digitization, including workforce mobilization through smartphones and devices—another key driver for mobility beyond warehouses.
Managing Risks in Mobile Adoption
While pursuing real-time, end-to-end supply chain visibility, shippers face obstacles in mobile implementation beyond warehouses. Krebs identifies worker safety concerns as mobile devices potentially distract drivers.
Solutions include application designs ensuring driver focus remains on the road. "Methods exist to 'lock down' technology use and prevent accidents," Krebs notes.
Legacy systems also hinder fully mobile supply chains. "Current infrastructure doesn't always support desired capabilities," Krebs explains. "Traditional systems don't always integrate well with modern mobile solutions."
Despite challenges, experts observe steady progress toward real-time supply chain management, though full ecosystem connectivity remains in early stages. Adoption ultimately depends on carrier and shipper willingness to invest and integrate technology.