Introduction
Supply Chain Management refers the activities involved in planning, controlling and executing a product’s flow right from acquiring raw materials and production to the customer’s doorstep or stores next to the customer. The activities here are optimized and stream-lined to ensure fastest possible as well as the most cost-effective route for all parties involved to meet their needs. The integrated processes required to meet the objectives of supply chain management include demand planning, sourcing, production, inventory management and storage and transportation (Rouse, 2017).
Supply Chain Management is very complicated process that requires all stakeholders from suppliers to manufacturers to cooperate and work as a team in order for it to run effectively. Proper change management and risk management are also important components that ensures everyone involved keeps up with changes in the working environment, technology as well as customer needs (Rouse, 2017).
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Potential Effects of Driverless Transportation
Transportation is a key element in supply chains as it involves movement of product at the specified service time and cost. Moreover, it also contributes to movement of information and integration within and among suppliers, customers and carriers. The aim of transportation should be ensuring there is appropriate responsiveness that is fast as well as flexible. For instance, companies that use internet and catalogs to sell their products require transportation that is integrated and responds adequately by delivering products to any part of the world within 48 hours (Potts, 2014).
Traditional transportation has been steered by human drivers who are given logistics that direct them towards product final destination. Although, this mode of transportation has been beneficial to many in terms of job creation and economy expansion, it has had some issues that most of the time compromise the supply chain management goal of being completely efficient and ensuring 100% consumer satisfaction.
Driverless transportation will revolutionize transportation not only in supply chain management but also in many other areas in the economy. In supply chain management for instance, it eliminates the human element which is subject to error and is unpredictable. Therefore, this will enable transportation of goods 24/7 with having the need for employees taking shifts. Goods therefore, would be transported more efficiently and faster as programmed by the software controlling the driving. Moreover, this will allow for accurate data estimations and even allow for simulation of strategies that yield better results by the stakeholders. Safety, which is an issue with current trucking due to the number of traffic accidents, is likely to be enhanced by driverless trucking and consequently result in less accidents on the interstate highways.
Driverless transportation will more certainly reduce the time required for product flow from different manufacturers to the consumer. Driverless vehicles could deliver goods at any time without the need of having to wait and drones could be used to deliver the package right to the customer’s door step. Driverless transportation is also likely to utilize electric cars and trucks with driverless trucking being more eminent than driverless cars. Electric cars will mean that fuel costs are reduced by the companies and ultimately fulfilling yet another goal of supply chain management, cost-effectiveness. Basically, fuel efficiency is likely to improve as the trucks will more likely than not operate at optimum fuel efficiency (Kennedy, 2017).
The first step of driverless trucking is expected to be truck platooning. Truck platooning is whereby linehaul of trucks are made to travel in a tight convoy and are coordinated by vehicle-to-vehicle communications. However, the future can never be too certain and therefore there is a lot of room for new and more efficient driverless trucking forms. Therefore, driverless trucking will be a stimulant for innovation and therefore advancements in humanity. Driverless transportation will also allow for reducing inventory for distribution companies as products will be tied to customer orders and could be delivered directly from the manufacturing industries.
Driverless trucking has a number of challenges that also could be used to counter its full implementation and realization. One such issue is the issue of employment. Driverless trucking will result in automation of trucks and therefore reduce the number of jobs available to the current drivers. This will consequently lead to retrenchment of drivers currently employed. Moreover, there is still a lot that needs to be done in terms of policy which certainly may result in adjustments in current advances. Driverless trucking will also need a lot more security investments to ensure that the trucks are secure and that the inevitable threat of hacking is dealt with this therefore increases the cost of implementation making the driverless trucking a costly venture.
Conclusion
Driverless trucking is the future of supply chain management as it addresses a multitude of issues and problems experienced by the current transportation system. It however has its bottlenecks that need careful traversal to ensure the best possible solutions are found for them. Driverless transportation requires a lot of cooperation between stakeholders involved for it to be a success and consequently meet the intended objectives.
References
Fawcett, S. E., & Waller, M. A. (2014). Supply chain game changers—mega, nano, and virtual trends—and forces that impede supply chain design (ie, building a winning team). Journal of Business Logistics , 35 (3), 157-164.
Hugos, M. (2014). Five Supply Chain Drivers. Retrieved from https://www.scmglobe.com/five-supply-chain-drivers/
Kennedy, L. (2017). Driverless Transportation and Its Impact on Transportation Services. Retrieved from https://supplychainbeyond.com/will-driverless-change-transportation-services/
Potts, J. (2014). How Driverless Trucks Will Change Supply Chain Strategy - Inbound Logistics. Retrieved from https://www.inboundlogistics.com/cms/article/how-driverless-trucks-will-change-supply-chain-strategy/
Rouse, M. (2017). What is supply chain management (SCM)? - Definition from WhatIs.com. Retrieved from https://searcherp.techtarget.com/definition/supply-chain-management-SCM
