Bridging the gap between CRAFT and TECHNOLOGY

September 14, 2018

Blockchain, artificial intelligence, the internet-of-things, autonomous vehicles... seems like you can't have a conversation about technology, without these buzz words being thrown around. These kind of technologies are extremely exciting and will likely change the way we live and work. We can't forget that it's important for companies in our space, to strike a balance between the 'craft' of our industry and 'technological' progress happening today.

There is currently an arms race in the transportation and logistics arena. The larger companies are continuing to consolidate in order to drive scale. Too often though, this actually results in bringing more complexity to their business processes. Simultaneously, many smaller companies are working diligently to break into the market with the next new ‘widget’.

The irony here is that both companies are, generally, working to try and answer the problem for their clients: “How do I get the visibility that I need over my supply chain in order to make better business decisions and, ultimately, execute for my customers”. While the challenge on the surface sounds fairly straight-forward to the average person, anyone who has spent enough time in logistics understands that no two shippers are the same. All the same, even with the incredible complexity of this business, providing clients with a complete view of their supply chain is not a pie in sky concept, it’s something that is happening.  

                “The how” is fairly clear, translating raw customer data into actionable information.  Many companies are already doing this, however, going a step or two further will be the real innovation.

The good news is that many logistics providers are extremely rich in client data. The bad news is nearly all freight forwarders struggle to turn the data into information that can drive meaningful decision-making. The largest providers amongst us often struggle since they are usually using dated, multiple or disparate data sources and systems (a byproduct of ‘growth through acquisition’ strategy which dominates the logistics industry). These business realities result in an extremely difficult environment to deliver on global visibility.  On the other side of the spectrum, many smaller technology companies are starting with a ‘clean’ slate and a slick system. But most lack the basic knowledge of freight forwarding and don’t have the scale to procure with the air and ocean carriers. They have sexy technology, but in reality it doesn’t move a lot of freight.  

Time and time again our fortune 500 clients tell what they need is both.  Shippers need an enterprise with great technology and also logistics professionals who understand their extremely complex supply chains. While this industry is obviously ripe for innovation, it is crucial that we don’t lose sight of the ageless ‘craft’ which makes this business work. Our belief at Crane Worldwide Logistics® is that those businesses that will truly lead this industry are the ones that bridge the gap between the craft of logistics and technological innovation.  Having tools such as predictive analytics technology integrated with artificial intelligence while still enthusiastically embracing the craft of logistics will be how our industry truly innovates for our clients.  Visibility looks at yesterday, predictive analytics is looking around the corner and into the future.  It is exciting, that’s for sure, but one thing I am certain of is that you can never automate best in class customer service.  And you never will.


by John Magee, CEO and President 


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