Location, Location, Logistics
6/28/24
Understanding how location technology (GIS) can improve your Supply Chain
You’ve probably heard the phrase “location, location, location” to signal the importance of location in real estate. But have you heard how it can innovate the supply chain? If you’re looking for the right technology to put into place for your logistics operation, then you must first understand the concept behind “location intelligence” and GIS.
According to the National Geographic Society, “A geographic information system (GIS) is a computer system for capturing, storing, checking, and displaying data related to positions on the Earth's surface. By relating seemingly unrelated data, GIS can help individuals and organizations better understand spatial patterns and relationships.”
In other words, because everything happens in a physical location, a GIS system can display and analyze the relationship between objects, events, and assets. For instance, law enforcement can map out the location and type of crime and combine it with other attributes such as traffic patterns, subway routes, and business types, to find a pattern not readily apparent without GIS. This technology has been used in government entities for years and is currently being used in everything from displaying your location on a cell phone to monitoring migration patterns of great white sharks.
How does this translate into the supply chain industry? Incorporation of location is extremely important in this changing world, as we see more and more assets being equipped with IOT (Internet of Things) devices, providing a real-time view of the location, state, and condition of the asset. It also lets users know the physical impacts of the assets moving through space and time to see where issues arise or could arise.
Harnessing the power of location intelligence as a primary means to mine, create, analyze, and visualize data enables supply chain managers to derive unique, actionable insights.
Like the law enforcement example above, supply chain locations, assets, movements, etc. can be mapped and analyzed within a GIS. You get actionable insights such as:
Where and when are delays occurring?
Where do empty containers exist and when do they need to be returned?
Where can I find a chassis? Where is the right chassis?
Which driver can move this equipment the most efficiently?
To illustrate even more powerful capabilities, let’s look at the ESP Maestro platform as an example. ESP Maestro uses the location of the assets as a primary means to relate assets to each other via data layering. This data layering concept leads to finding patterns in seemingly unrelated assets as they move through the supply chain.
What are data layers? In the context of logistics, a layer is a condition that influences the supply chain's operations. Examples of layers include terminal wait times, predictive wait times, traffic conditions, weather patterns, political boundaries, and civil unrest. ESP Maestro contains thousands of these layers, giving it a highly comprehensive picture of factors affecting the supply chain space. The layers are combined to find relationships as they interact with the path of your cargo, transport, etc. to provide solutions, avoid issues, or minimize risk.
Maestro’s power allows for user stories silimar to the following: Ship A’s final destination is to Warehouse B in Los Angeles from Spain. A route and carriers are established. However Maestro sees that in the intended route, there are a few things that will affect the shipment: port strike, stormy weather rolling in, heavy traffic in the area, and Warehouse C suddenly has an emergency and needs the items more than Warehouse B. Maestro will send alerts of these issues and suggest a more efficient route as information becomes available in real-time.
Data can also easily be aggregated into geographic areas (terminals, ports, etc.) generating the ability to quickly visualize relationships and information in many ways, i.e., closest warehouse locations to customers and areas with the most traffic. Assets within or surrounding these “areas” can be queried and the results shown in the format of your choice. This includes geographic, tabular, map clusters, or aggregated themes for each area (ex. current delay times).
In conclusion, harnessing the power of location intelligence and Geographic Information Systems (GIS) is revolutionizing the supply chain industry. By utilizing GIS to capture, store, and analyze spatial data, supply chain managers can derive actionable insights into their operations. This technology, which has been effectively used in various fields such as law enforcement and wildlife monitoring, allows for real-time tracking and analysis of assets. Platforms like ESP Maestro exemplify how layering location data on traffic, weather, and other conditions can optimize routes, prevent delays, and minimize risks. As the supply chain landscape continues to evolve, integrating location intelligence will be essential for enhancing efficiency and maintaining a competitive edge.
AUTHOR
Brian Smith, Chief Product Officer
Brian has more than 22 years of GIS and Spatial IT experience. He has developed innovative approaches to solving 4th industrial revolution challenges by applying GIS, spatial techniques, reality capture, AR/VR, and BIM models to illustrate and report on existing conditions, future conditions, data feeds, and data sharing.