Smart Delivery

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: Smart delivery integrates advanced technologies to automate and optimise the delivery process in supply chains, for instance by using real-time tracking, new mobility solutions, and (E2E) connectivity
• Impact: The trend leads to improved operational and resource efficiency, cost reduction, enhanced transparency, and environmental benefits in operations

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Environmental Sustainability Pressures: Increasing awareness of climate change and environmental impact demand green logistics solutions to reduce the carbon footprint of supply chain operations
• Technological Advancements: Rapid technological development such as the Internet of Things (IoT), artificial intelligence (AI), autonomous vehicles, and advanced analytics tools enable smarter, more efficient delivery systems, capable of real-time tracking, predictive logistics, and automation
• Legacy Systems: Due to an increase in volume and speed, many legacy systems are at the edge of their capacity

Use Cases 

How to apply this trend? 

• Minimisation of Procurement Duration: Smart logistics enable a drastic reduction in delivery times
  Example: Senpex uses elements of Smart Delivery, for instance, route optimisation or analytics as well as APIs with partners, to achieve a same-day-delivery that leads to flexible procurement possibilities
• Supply Chain Control Software: Increase transparency along the value chain and within Procurement
  Example: SAP Ariba offers control tower software that enhances visibility into freight and logistics, optimising Supply Chain Management and flow of goods

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Use APIs at Logistics Partners: Having interfaces with logistics partners eases the communication and alignment between buyer and supplier to optimise procurement
• Establish Teams for Smart Delivery: Taking Canada Post or PostNL as examples, procurement departments should dedicate a certain amount of their capacities towards building Smart Delivery capabilities to gradually replace legacy systems