Page 23 - Forbes Magazine-September 30, 2018

WITH PENSKE

THE ENGINES:
REVVING

How Technology Is Propelling the Transformation

in Logistics, Supply Chain and Transportation

Forbes Insights research speaks of a brave new world in transportation and related disciplines.
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OUT IN FRONT BEHIND THE SCENES
Grabbing all the headlines are transportation’s mechanical Less visible but already proving impactful today are tools
marvels. It starts with talk of driverless vehicles and drones. As such as artificial intelligence and machine learning. Consider
these technologies evolve, their developers insist they carry examples such as:
the potential to broadly automate transportation in the very
• TARGET: Cheaper, faster, better A recruiting ad for supply
near future. Yet today, all of this is more promise than practice.
chain and logistics roles says: “We’re becoming more intelligent,
ÕÌ Ì iÀ Ài> Ü À ` >`Û> Vià >Ài ÃÌ `iw
Ìi Þ >Û
} automated and algorithmic in our decision-making. We’re
an impact, particularly in terms of safety. Consider forward- constantly reimagining how we get the right product to our guests
looking cameras and radar that can slow vehicles in the even better, faster and more cost-effectively than before.”
1
presence of hazards, along with other tools such as adaptive
cruise control, rollover stability and blind spot warnings. • A MAJOR U.S. TRUCKING CARRIER: Accelerated
decision-making Here the logistics team handles a wide
range of complex but repeatable tasks requiring massive data
'ZRGEVGF $GPGƂVU (TQO #FXCPEGF 6GEJPQNQIKGU input to make the best choices. Optimal carrier selection once
required 5 to 10 minutes analyzing thousands of possible
candidates, routes and schedules. AI instantly reduces the
number of choices to a handful, cutting decision time for its
62 59 58 human teammates to a matter of seconds.
%
%
%
• LENNOX: Fine-tuning logistics This air-conditioning, heating
Productivity Speed/response time Visibility and refrigeration giant is harnessing advanced technologies
as an integral component of a supply chain overhaul. To
complement steps such as moving stocking points closer to
customers, machine learning is helping the group improve
57 56 55 forecasting, optimize inventories and improve service.
%
%
%
2
A CALL TO ACTION
Accuracy (“what Workforce Ability to The degree of transformation is profound. The impacts include
and where satisfaction anticipate customer better deployment of resources, enhanced visibility across the value
needed when?”) needs (“intimacy”)
chain as well as better predictions in terms of customer needs or
even required vehicle maintenance. Unquestionably, the engines
of disruption are idling. The question becomes—which groups will
53 % 53 % 53 % be pressing their accelerators?

To learn more, read, “Logistics, Supply Chain and
Customer satisfaction Uptime Flexibility
Transportation 2023: Change at Breakneck Speed,”
at www.forbes.com/transportationinsights.

1 https://corporate.target.com/careers/corporate/supply-chain-logistics
2 ToolsGroup case study: Lennox, https://www.toolsgroup.com/images/cs-lennox.pdf