Question.2327 - Course Objective: C07: Analyze new technology that will change the current paradigm of log istics of ex isting supply chains. Prompt: Discuss the pros and cons regarding App based technology such as Uber O freight and how these kinds of solutions will impact and reduce cycle time within a supply chain. Offer evidence and support for your position and consider how this will disrupt ex isting global business.In addition to reading your assigned resources for week 7, research online new technologies in supply chain management.
Answer Below:
App-based technologies like Uber Freight have brought significant advancements to supply chain management, revolutionizing the way goods are transported and impacting cycle time. While they have the potential to enhance efficiency, reduce cycle time, and disrupt traditional business models, careful consideration of their pros and cons is necessary to ensure successful integration and optimal results. Pros: ? Efficiency and Transparency: App-based platforms connect shippers and carriers directly, reducing the need for intermediaries. This streamlines communication, leading to better visibility, real-time tracking, and quicker decision-making. According to reports, digital platforms can decrease transportation costs by 10-20% (Gallay, et al., 2017). ? Optimized Routes: These platforms leverage algorithms to optimize routes, minimizing empty backhauls and reducing fuel consumption. Uber Freight, for instance, uses data analytics to match carriers with available loads in a manner that reduces detours and idle time (Dablanc, et al., 2017). ? Reduced Cycle Time: By providing real-time data, app-based technologies enable shippers and carriers to make informed decisions, enhancing overall supply chain agility. Faster and more accurate communication leads to reduced waiting times, loading/unloading, and transit time (Kayikci, 2018). ? Access to a Broader Market: App-based platforms allow smaller carriers to access a wider range of shipments, leveling the playing field with larger competitors. This leads to increased competition and potentially lower costs. Cons: ? Dependence on Technology: Heavy reliance on app-based solutions can be problematic if technical glitches or outages occur. A system failure could disrupt operations and result in missed deadlines (Gallay, et al., 2017). ? Quality and Reliability: App-based platforms might prioritize cost savings over quality, potentially leading to inadequate carrier vetting and reduced service quality. This could negatively impact customer satisfaction. ? Privacy and Security Concerns: Sharing sensitive data on a digital platform raises concerns about data security and privacy breaches. The risk of cyber-attacks and unauthorized access could compromise the integrity of the supply chain. ? Resistance to Adoption: Traditional players in the supply chain might be resistant to adopting new technologies due to inertia, lack of tech-savviness, or concerns about job displacement. App-based technologies have the potential to significantly reduce cycle time within a supply chain. By providing real-time information, optimizing routes, and enabling efficient communication, these platforms can help minimize delays, waiting times, and transit durations. According to studies, 63% of companies using digital supply chain solutions experienced a reduction in lead times (Kayikci, 2018). The adoption of app-based technologies can disrupt existing global business models. Traditional freight brokers and intermediaries may face decreased demand as shippers and carriers increasingly opt for direct connections through digital platforms. This shift could lead to a more competitive environment and potential cost savings for businesses. App-based technologies like Uber Freight offer both advantages and challenges for the supply chain. As the logistics industry continues to evolve, embracing these technologies could drive improvements in supply chain management and create a more agile and responsive global trade network (Gallay, et al., 2017). References Dablanc, L., Morganti, E., Arvidsson, N., Woxenius, J., Browne, M., & Saidi, N. (2017, October). The rise of on-demand ‘Instant Deliveries’ in European cities. In Supply Chain Forum: An International Journal (Vol. 18, No. 4, pp. 203-217). Taylor & Francis. Gallay, O., Korpela, K., Tapio, N., & Nurminen, J. K. (2017). A peer-to-peer platform for decentralized logistics. In Proceedings of the Hamburg International Conference of Logistics (HICL) (pp. 19-34). epubli. Kayikci, Y. (2018). Sustainability impact of digitization in logistics. Procedia manufacturing, 21, 782-789.More Articles From Management
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