The need for change in the logistics industry
Despite the ongoing surge of technological advances throughout the logistics industry, many companies struggle with persistent inefficiencies. These challenges are not just minor inconveniences but critical bottlenecks that can significantly impact a company’s bottom line and competitive edge.
The cost of these inefficiencies goes beyond operational hiccups; they can lead to lost business, damaged reputation and stunted growth in an increasingly competitive global market. As the logistics landscape evolves rapidly, companies that fail to address these challenges risk falling behind more agile and innovative competitors.
The solution: AIM methodology
To address these challenges, industry experts have developed a straightforward yet powerful three-pronged approach dubbed “AIM”:
- Assess: Identify specific inefficiencies within your business through a comprehensive audit of current processes, technologies and pain points.
- Implement: Deploy targeted solutions to address these inefficiencies, such as adopting new technologies, redesigning workflows or implementing training programs.
- Monitor: Track the effectiveness of implemented solutions and optimize accordingly to ensure continuous improvement.
Many companies excel at assessment and implementation but often fall short in the monitoring phase. Sabari Ramnath, Unisys senior manager of solution management for Enterprise Computing Solutions, notes, “If you don’t know how to use the data efficiently, you are missing something.”
The 3 ‘deadly deficiencies’
The AIM methodology addresses three interconnected problems that affect logistics operations across sectors — from air cargo to freight forwarding:
- Reliance on manual processes: Many companies still depend on outdated, paper-based systems that slow operations and increase error rates. This reliance hampers productivity and makes it difficult to adapt to rapidly changing market conditions.
- Lack of visibility and transparency: When information is trapped in manual processes or siloed systems, it often fails to reach all stakeholders, creating blind spots in the supply chain. This lack of visibility can lead to missed opportunities, increased risks and poor decision-making.
- Insufficient collaboration: The supply chain involves numerous interconnected players. Siloed operations lead to miscommunication and inefficiencies. Effective collaboration requires aligning information, goals and technologies across the entire supply chain, a feat that many organizations struggle to achieve.
These deficiencies tend to occur together and reinforce each other, creating a cycle of inefficiency that can severely disrupt logistics operations. The AIM methodology is specifically designed to tackle these issues head-on.
Combining AI and human expertise
Processing large amounts of data requires more than human intelligence alone. Ramnath explains, “People think those with more data are the king. However, the true power lies in effectively leveraging that data.”
Combining AI with human expertise offers new efficiencies and insights:
- AI processes vast amounts of data to identify patterns, predict trends, and optimize routing and inventory management.
- Human intelligence provides context, strategic decision-making and creative problem-solving.
Combining AI and human expertise helps overcome operational challenges and improve overall performance.
Navigating the tech landscape
Experience matters when it comes to implementing the AIM methodology and effectively leveraging AI. Unisys has been at the forefront of logistics technology for more than four decades, and has been pivotal in the industry’s digital transformation.
“Innovation is in our DNA,” Ramnath said. From helping the industry adapt to the internet in the 1980s and 1990s to logistics optimization solutions, Unisys continues to advance logistics technology.
Ready to optimize your logistics operations and overcome the “deadly deficiencies” holding your company back? Unisys is offering a free webinar on Sept. 17 to explore how to optimize your business processes to win more business.
