The logistics and supply chain industry has dramatically transformed over the last decade due to the adoption of technology as well as the increasing globalization of trade. Some of the issues that companies in this market face pertain to real-time data, disruption management, and operational efficiency. These concerns are aggravated in digital and global supply chains that are highly sensitive to disruptions.
Customers in this industry expect solutions that can solve such problems and also be compatible with different business types, industries, and geographical regions. That is why it becomes crucial for logistics software to be capable of meeting such needs, as well as being scalable, efficient, and cost-effective.
Jonathan Kwok, CEO of Meson Logistics Solutions who has spent more than 30 years in logistics and supply chain software development, has seen this transition firsthand. He started working in the IBM iSeries (AS/400) period and has worked through two-tier and three-tier client/server architectures and N-tier systems with ASP. NET and Java, and now cloud-native solutions with the microservices architecture. Over the years, Kwok has witnessed the advancement of logistics technologies especially the changes in enterprise applications.
According to him, the most revolutionary change that has occurred in the industry is the microservices architecture. This architecture makes logistics software to be scalable, robust, and able to utilize resources in an efficient manner. “Microservices architecture provides the scale and reliability that is required for enterprise applications”, Kwok says.
He also stresses on the need for logistics software to be scalable and flexible as more and more organizations move their software to the cloud to guarantee that they can support the evolving business needs.
From the practical, operational point of view, Kwok says that the most revolutionary change has been the ‘platformization’ of enterprise applications. It means that today’s logistics software can be configured without the need for programming. Meson Logistics Solutions leverages this flexibility to allow companies to integrate new business processes in their systems faster than redesigning the software systems.
Embracing Digitalization: Data as the Driver
Over the past few years, natural disasters and political instability have disrupted supply chains across the world. The outbreak of the COVID-19 pandemic exposed the fragility of global supply chain networks and forced organizations to increasingly rely on digital tools to keep their operations running. In Kwok’s view, the main challenge that defines the ability to manage disruptions is the management of data.
“Gathering information, identifying the necessary patterns, disseminating it to the appropriate subsystems, and using it to make fast decisions – this is how software solutions can minimize supply chain problems”, Kwok adds.
He notes that the use of data in the various aspects of logistics means that the company can make the right decisions at the right time, for instance in the choice of the best transport network or in restocking of products.
His focus on data is in line with the general trend in the industry where firms seek to improve their decision making through analysis. In the present day, logistics solutions that are based on data are not a luxury but rather a necessity since real-time information is vital for responding to the disruptions that may occur.
Platformization & Configurability Meeting Diverse Market Needs
Another important issue that affects logistics software is flexibility, meaning the ability to adjust the solutions to specific markets, industries, and geographical regions. In his work, Kwok points out that the ideal characteristics of a logistics system are the ability to be highly configurable as well as highly extensible. His team’s approach to software development is to make it as flexible as possible where customers can configure all operational flows using switches, parameters, rules, and strategies on their own. This means that customers get complete control of the software to make changes at any time in accordance with their evolving business needs like it’s their own proprietary software.
“Companies have their own specific issues and they are always interested in finding out how other companies in the same line of business have approached the problem”, Kwok adds. Meson Logistics Solutions has served over 1,100 customers in 20 industries and has noticed that they all face different operational problems. As its software is highly configurable, these problems can be solved by the customers themselves without having to alter the source code.
The concept of platformization is important in Kwok’s work, especially with the warehouse management systems (WMS). He also posits that a WMS that is highly configurable is important to the success of the company. In today’s dynamic business environment, the flexibility of changing the software to adapt to new market requirements while not affecting the existing business processes is a major advantage.
Automation, AI & the Evolution of Logistics Technology
Automation has been widely implemented in logistics over the course of the past two decades. From robotic systems to artificial intelligence (AI), new technologies have gradually transformed the supply chain management in organizations. Kwok has vivid memories of the first years of logistics automation when most of the solutions were ‘bolted-on-the-floor’ systems, which were very expensive to implement and almost impossible to expand. However, the advancement of Intralogistics Smart Robots (ISRs) has changed the scene by providing more flexible and scalable automation solutions.
“Meson Logistics Solutions has been adapting its software for use with AI and automation for several years now. In the future, the ability to connect with robotics and AI will be fundamental to the success of logistics software”, Kwok reveals. He considers AI as a gradual but inevitable change in the industry. The way he has adopted AI in his logistics solutions is to ensure that the software can be integrated into other systems such as ISR. This makes it possible for businesses to be in a position to adopt new technologies in the market without having to change their software systems.
Consulting as a Key Differentiator
Yet another factor that makes Kwok unique in the logistics industry is the fact that he adopts a consulting model in software development. For Kwok, creating software is not just about delivering a product but the problems and issues that his customers are experiencing. “We are a logistics software company but, in essence, we are a logistics consulting firm”, he says.
To achieve this, Kwok spends a lot of time with the logistics teams to understand how his software solutions will be used in practice. His team also spends time identifying the challenges that a particular business is facing and then developing solutions that can be scaled up as the business expands. This consultative approach is not just about developing software but about assisting organizations to develop workable and efficient process flows for their business issues.
Looking Ahead: AI and Robotics as the Future
Kwok’s idea about the future of logistics software is based on his understanding of the fact that artificial intelligence and robotics will remain the key drivers of change in the sector. This means that while supply chains get extended and complicated, the companies will require software that can easily integrate with the automation tools to stay relevant.
“Logistics software is a field that has to adapt to AI and robotics in the future”, he points out. Each time he provides solutions that are relevant to the current technological developments, Kwok guarantees that Meson Logistics Solutions is positioned at the forefront of the industry.
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