Disruption generally means disturbance that interrupt a process, event or activity. But in the field of logistics and supply chain, disruption has a more positive connotation—innovation and technological advancements. The supply chain and the logistics industry, especially manufacturing, warehousing and transportation, is set to witness massive disruption with groundbreaking technological innovations like the Internet of Things and artificial intelligence. So far we have seen technologies like Cloud computing and sensor devices that have been disruptive or offered competitive advantages in the industry.
The term disruption or disruptive technologies have come into use because these technologies have a tendency to completely transform the way companies function or even bring about their collapse. Companies that have failed to acknowledge and adapt to these disruptive forces have invariably ended up disastrously.
Threat to business
So what happens if companies fail to respond to these disruptive forces? Let’s look at the example most often quoted to illustrate the dire consequences of not responding to disruption. Kodak for a long time ruled the consumer photo market with their superior technology. With the advent of digital technology, digital cameras replaced film but Kodak failed to recognize the opportunity and the future of digital until they had no other choice. By then it was too late.
The traditional way of doing business in the industry by established players is potentially disruptive as they tend to lose out on their ability to meet the expectations of an evolving market. In the supply chain and logistics industry, emerging technologies are fast changing the way companies do business. Technological changes though not happening overnight is taking place rapidly. If a company fails to respond to these emerging technologies, which are disruptive in nature, it will soon become a threat to its very survival.
Growing with technology
Exponential technology adoption leads to exponential growth. Faster, cheaper computing and mobile devices bring about unexpected convergence outcomes but then the logistics industry isn’t exactly known for holding back. Automation, robotics, drones and unmanned vehicles and digital mobility are most likely to be the causes of either disruption or competitive advantage in the future. These disruptive technologies are game changers that can make or break companies.
It is important to have an eye on upcoming trends in technology more so ones that have the potential to be disruptive. Companies that are flexible, adaptive and willing to embrace new technologies are the ones that can handle disruption in their business. Not only can they survive the disruptive forces but they can attain greater growth with technology.
Looking ahead
The logistics industry is seeing rapid and remarkable transformation that has not been witnessed before. Innovation and technology are redefining the future of logistics. The industry has been cautious in adopting these technologies that can enable them to provide faster, cheaper, and reliable services. On the other hand the supply chain is keen to see logistics service providers integrate new technologies into their services which will eventually benefit them. These new technologies are expected to increase speed, decrease waste and reduce overall costs of logistics operations.
Looking ahead, the future seems to be quite exciting and challenging at the same time. The choices logistics companies make today will to some extent determine the long-term changes in the industry. But the moot question is, are companies ready for a future that will be driven by these cutting-edge technologies? Whether your business submits to the disruption forces or gains competitive advantage depends on how you strategize your approach to it and rise to the challenges of the future.
