Tech Change Implication On Global Transportation Costs

Introduction

Innovation of transportation technology nowadays is more and more developed. People use boats and horses to transport goods around 7,000-10,000 years ago. In 1769, the Watt steam engine changed everything. The world’s first steamship is invert by a French name Claude de Jouffroy. It simply carrying passengers and making trips up and down the river. In 1957, Boeing 707 was the first commercial jet that had been create. At the same year, first man-made satellite had launch into orbit. After 18 years, the first personal rapid transit system be installed in Morgantown, West Virginia, United State. The world’s transportation sustainable develop every time by time no matter from which type of transportation. It decreases the time of sending goods around the world, but the cost would be more and more high due to which type transportation it takes. The implication of technology change involves those way to reduce the span time of sending goods from one place to another place. The cost of air shipping has decreased in equivalent amount, resulting in a rapid increase in air transport while the cost of ocean shipping nowadays isn't much cheaper than in the 1950s (Ford and Corble, 2016).

Transportation cost

Transport costs can be an essential part of the overall logistics cost of a company. For higher fuel costs, the proportion allocated for transport can be greater than 50%. The expenditure is passed on to the customer and it continues to increase the price of the goods (The Balance Small Business, 2019).
According to Button, the consignors are concern not simply with the financial costs of carriage but also the reliable, speed and time-tabling of the service. The demand for transport is not, rather on the overall opportunity cost involved it still simply dependent on financial costs. Therefore, a trip's generalized cost can be represented as a single, normally financial, calculation combing, typically in linear form, most of the significant yet disparate cost of the trip's total opportunity cost (Mangan and Lalwani, 2016).

Type of transportation

There are 5 types of transportation modes by sending freight to destination and also have combinations which is sending goods to destination by using more than one mode. For the digital products and information, it will be sending by the internet. To sending freight by road, it possible to sending it point-to-point, must be intense competition and flexible and various but disadvantage for road transport mode is not suitable for bulky goods and long distance. Besides, to ship the freight by waterways the cost is low for heavy and bulky goods by transported internationally. However, it takes long time for shipping goods from one country to another country. For example, it may take more than 1 month to ship from port of Shanghai to port of Dublin. Next, rail transport for freight it’s cheaper over long distance than road but it’s lack of point-to-point service because it is connected to a specific track. Moreover, air transport is the fastest way to sending freight around the world. It may only take less than 1 days to send the freight to the consumer. The disadvantage for air transport is the cost is higher than other transport mode and it can’t carry bulky goods. Last, the pipeline transport suitable for natural gas, oil or water. Most of the oil and gas sending by piped however the fixed investment is high and it can only be one-way transportation (McKinnon, Button and Nijkamp, 2002).

Barcode Technology

Barcode technology arguably popular at everywhere in the world, it’s a graphical, machine-readable way of representing information. By the spacing of parallel line and the widths, it will show out all the information of the product. Almost every aspect of supply chain management was affected by barcodes. Barcodes are an efficient tool for identifying products and significantly reducing errors. It simplified the processes of Supply Chain management make it more efficient. There are lots advantages of Barcode technology which are affordability, ease of handling, and accuracy. Such advantages make barcodes commonly used and accepted throughout the world in supply chain management. Using barcode technology in procurement practices enables timely and reliable information to help the business run with greater efficiency in the warehouse and minimize stock on hand. For consumer nowadays, instant satisfaction is not a luxury but a standard. Conditioned by the simple one-click ridesharing on demand, consumer expect the goods they brought can sending by same speed with the traditional purchases. The advancement of barcode scanning is an attainable goal of supply chain efficiency. High-tech barcode scanning systems change the way warehouses and distribution centres operate, ensuring that the right goods get into the right situations consumers more efficiently than ever before.

For example, it helps to improve the data management on inventory and product tracking. Barcode scanning helps manufacturers and distributors to automate each step of the process of fulfilment, from select to buy. Moreover, its improved visibility and product details at all levels. The global authority setting international barcode standards has responded to these changing needs with more reliable barcodes that simplify the process of monitoring different lots of products (SETZER, 2016). Barcodes will significantly reduce the cost of the warehouse operations. Warehouses that do not use barcode for scanning and data capture are very manual and need employee to key all warehouse operation documents such as receipts, transfers of stock between locations and more. Barcode can reduce cost to employ workers typing all the information of product each and each time, using barcode tracking instead labour tracking. Besides, the product with small packaging has their own barcode but it also has a the specify barcode for the carton packaging. It reduces the labour cost for scanning the product carton by carton instead one by one.

Artificial Intelligence (AI)

Artificial Intelligence saves time and money because it enables different time-consuming procedures to be automated. First, AI tends to transform warehouse operations such as inventory processing or information collection and analysis. It shows AI is helping to increase the efficiency and make a profit. In addition, the artificial intelligence system is capable of handling the job and performing various daily tasks. Moreover, artificial intelligence makes transportation effective, self-driving vehicles carry improvements to the supply chain and help to reduce transportation costs. In the logistic sector, artificial intelligence can help a company to predict demand. In order to speed up delivery, companies need to predict the approximate number of goods.

For example, the business will lose some money if there is a limited amount of goods, but the demand is high. AI systems are more able to estimate than human behaviour. Artificial intelligence helps to increase the accuracy of demand forecasting following the required factors, it may help the management of the warehouse become simpler. Furthermore, AI can improve customer experience. Customer can revel in the more personalized experience and company gain brand loyalty from customer. (Minis, 2011)