Harnessing the Power of Location Based Services

When you think about disruptive technologies, what are some things that come to mind? Smartphones, digital cameras and the Cloud are some recent examples, but what about the supply chain? Disruptive technologies such as autonomous vehicles, the internet of things and 3D printing/additive manufacturing are at the forefront. Could Location Based Services also be thought of as a disruptive supply chain technology?

Location based services have a history in social media with applications such as Foursquare and Swarm, bred by the GPS power of smartphones. Location Based Services are also being used to support mobile advertising by knowing the location and potential merchandise or service that may be of interest to a consumer at a particular point in time.

What if that power could be harnessed for the supply chain? Location Based Services are currently used to track and trace transportation equipment and drivers. But it is more than just knowing the location of a shipment or a piece of equipment. It’s about the ability to dynamically tender and dispatch shipments in real time. It’s also about diverting a route because of a weather system or a severe accident that is causing major delays in the transportation route. In addition, location based services can be used to bring an “Uber-like” application to the logistics and transportation market.

But could it be even more? For inbound manufacturing networks, Location Based Services for pallets and containers could inspire new businesses and processes for managing these vital assets in the supply chain. For final mile delivery of white goods, it’s about adjusting the delivery based on real time feedback. For project logistics applications, it can provide for a seamless marriage of a flatbed and a project based forklift. For transportation fleet and service providers, there is an opportunity to instruct an owner operator of the closest service location and to also inform the provider with information regarding rental or replacement equipment for the piece equipment about to be repaired.

When considering Location Based Services, customers need to understand the providers, implications and solution options going forward. Clearly, Location Based Services can be thought of as a disruptive technology for the supply chain. In our view, it’s a disruption that brings with it great opportunity for logistics innovation.

Contributing Author; Tom Kroswek, Group Director, Product Development & Innovation at Ryder System, Inc.