The recent news surrounding generative artificial intelligence has captured widespread attention, leaving many of us intrigued and, in some cases, puzzled about the underlying dynamics of this movement. Some of these innovative ideas signify significant shifts toward an evolving work environment that we may not be fully prepared to adapt to yet. We often overlook fundamental problems in today’s context, such as reducing repetitive tasks performed by humans, aiding manual data input with fewer errors, expediting instructions to our drivers, or converting into online instead of term payment. Addressing these issues is more crucial for delivering economic value and help shape critical decisions.
Companies’ leader, regardless their business size, should embrace a transformative mindset with a sense of urgency rather than focusing on a distant 10-year horizon. Across various industries, the ongoing transformation involves adapting to technological work environments that provide superior processing power, decentralization, remote access to resources, and more efficient operations compared to manual processes. These enhancements are crucial and require adaptation with long-term implications for the company.
An illustrative instance of a logistics segment is an industry serving as the backbone of the supply chain network across various sectors. It plays a crucial role in supporting retailers, wholesalers, and manufacturers in every country. However, it continues to adhere to traditional, offline, and paper-based work methodologies that have been in place for the last 60 years. Numerous traditional logistics companies, whether large or small, operating on both local and global scales, offer comparable services with almost identical operational and pricing strategies for their clients. Despite discussions about transitioning to technology, many of these companies continue to practice traditional methods due to limited knowledge or budget constraints.
Leveraging my expertise in both the logistics industry and computer technology, I embarked on the initiative to build an integrated logistics platform system. This platform seamlessly interconnects various logistics functions and transforms traditional paper-based documents into digital formats, leading to a significantly more efficient, cost-effective and autonomous, without human interference logistics process.
The platform integrates a learning curve algorithm that assimilates and analyzes information provided by each user. This enables the system to autonomously self-configure, structure, calculate, and present results precisely to users online, beyond of their physical location. Software tools are becoming increasingly user-friendly, sophisticated, and adaptable to our working environments. Embracing the technology is essential for staying relevant and competitive in a rapidly evolving business landscape.
Architecture Design for Transporter/Forwarder
The platform encompasses “Domestic land and International air transport, Warehouse facility management, and eCommerce logistics services,” which are the most sought-services in today’s supply chain. Our approach commences with a comprehensive understanding of each forwarder or transporter’s profile and capabilities. This includes details such as their location, business and brokerage licenses, fleet size, number of drivers, warehouse facilities, and other pertinent information. By having this critical data, the system can accurately categorize each user into the right platform category service.
Subsequently, the system allows each user to input detail information into a segregated database such as pricing, schedule dates from and to routes, detail of warehouse services, and more. By having an identical data structure links to user identity, the algorithm is easily able to provide matching, verification and calculation when it is called by service algorithm. This ensures a streamlined and efficient process for users to manage and retrieve information relevant to each logistics service.
Furthermore, Mahyu’s auto analysis can identify various identical resources and integrate them to maximize their usage. Example, when a domestic transport is en route and passes through an airport, Mahyu’s algorithm facilitates transporters to efficiently manage tasks such as picking up incoming international shipments or delivering both domestic and international shipments to and from the airport through our mobile application. The cloud application directly links and assigns tasks to each driver’s mobile device. By doing so, it reduces the necessity for separate vehicles for distinct tasks and eliminates the use of paper instructions. This streamlined approach not only saves time and costs but also enhances overall productivity resources in logistics operations.
Mahyu integrates warehouse services under either domestic or international transporter since this service is interdependent and relies on either domestic or international transports to carry items to and from the facility. Many warehouse operators already offer domestic services as part of their integrated service. This integration expedites responses to bring each product to the market or to speed up the search of warehouse facility. The seamless collaboration between transport and warehouse services significantly improves overall efficiency in the logistics process.
The Business-to-Consumer (B2C) sector in e-commerce logistics has emerged as a crucial growth engine, often overlooked by many logistics companies. This sector exhibits stronger growth annually compare to the traditional Business-to-Business (B2B) sector. To enable Mahyu users, particularly international transporters, to participate in this e-commerce feature, a special arrangement needs to be arranged and approved by Mahyu administrators. This is due to the unique pre-arrangement of payments, duties, and taxes that need to be collected directly in advance from shippers at origin country, and to be paid to customs at destination country.
Configure Design for Business and Consumer Shipper
Working with centralized platform infrastructure enables direct interaction and real time interactions among all user under one unified system, including shipper both business and consumer. During the registration process for shipper, the system immediately segregated business and consumer/individual user into separate categorization databases. Business users typically demand variety of logistics services and often require term payment solution, distinguishing their needs from consumer users.
Our partner in each designated area, who have control over the administration menu, can determine a user, whether a business entity or consumer, is eligible for term payment. In certain instances, the options of cash or online payment may also be available. The payment system strictly monitors every new order entering the system. If the remaining credit limit is insufficient for the total transaction amount, the transaction is placed in the pending shipment category, requiring resolution or cancellation. Each of our payment gateways aligns with the rules and regulations of the respective country, ensuring that transactions are compliant and secure.
For international or cross-border invoices, involving both the origin and destination countries, or import and export procedures, the system incorporates real-time currency exchange values to avoid any confusion during settlement. For instance, if a shipper residing in Indonesia purchases items from Bangkok, Thailand, the invoice sub-total originating in Thailand is presented in Thai Baht, with a conversion rate specified in Indonesian Rupiah. The invoice sub-total at the destination in Indonesia is listed in Indonesian Rupiah. Ultimately, the total amount is provided in two currencies, Rupiah and Thai Baht, ensuring clarity and transparency in the invoicing process.
Closing, Cheer up
Technology will eventually be embedded into every facet of our social life, product and function. The logistics and supply chain industry, which has seen minimal improvement in the last decades, is definitely poised for transformation. Through the implementation of centralized infrastructure, logistics functions linked to each service and customized to suit specific countries, the industry is set to reduce redundant work functions, expedite processes, minimize delays, and enhance the overall utilization of resources. This evolution is crucial for the industry to keep pace with the changing demands and business environments in the digital era.
The responsibility for the failure to adopt new technological advancements lies solely with ourselves. While we can imagine and discuss innovative business solutions, the most crucial aspect of transformation is the willingness to embrace change. We firmly believe that company or individual capable of designing smart and flexible platform are likely to be in the best position to capture economic value in an increasingly challenging and rapidly evolving business environment. Written by: Eddy Syaifulah