Future of Sourcing - Disruptive Technology https://www.futureofsourcing.com/tags/disruptive-technology en It Takes 50 Years https://www.futureofsourcing.com/it-takes-50-years <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Industry%204.0.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Industry%204.0.png" title="Industry 4.0" class="colorbox" rel="gallery-node-1801-OP6uQuWd7UQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Industry%204.0.png?itok=_o-eBJ76" width="624" height="325" alt="Industry 4.0" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/procurements-calling-protect-the-business-in-times-of-crisis">Procurement’s Calling is to Protect the Business in Times of Crisis</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>The world is entering its fourth Industrial Revolution, commonly referred to as Industry 4.0. While Western economies ruled the first three industrial revolutions (steam, electrification, automation), the economies that will dominate a 4.0 World are unknown. The future is up for&nbsp;grabs.</p> <p>Industry 4.0 is driven by an electronically connected world. We now live and work in a world in which knowledge is growing exponentially. Since knowledge equals opportunity, the opportunities available to organizations are also increasing exponentially. And because virtually everyone is connected to this knowledge, everyone is connected to the opportunities.</p> <p>Competitive advantage today lies in an organization&rsquo;s ability to exploit this rapidly growing knowledge base and spot opportunities before anyone else. In essence, the continued prosperity of organizations now depends directly on the ability of their workers to generate new value consistently. Winning organizations have woken up to this&nbsp;fact.</p> <h1>Waking Up</h1> <p>What does &quot;waking up&quot; mean? At its core, it means understanding that there needs to be a fundamental change in how we manage and lead. In the 4.0 World, leadership is all about releasing and maximizing people&rsquo;s creative energy.</p> <p>So, the big question is, how long will it take organizations to realize that it is no longer business as usual? The previous two industrial revolutions hold some interesting insights to help us answer this question.</p> <p>In 1987, Robert Solow, renowned economist and Nobel Prize winner, stated, &ldquo;You can see the computer age everywhere but in the productivity statistics.&rdquo;&nbsp;<sup><a href="http://www.standupeconomist.com/pdf/misc/solow-computer-productivity.pdf" target="_blank">1</a></sup>&nbsp;Solow was referring to the apparent lack of return on the corporate world&rsquo;s investment in computing. In the U.S., computing capacity had increased a hundredfold in the 1970s and &rsquo;80s and yet productivity growth had actually gone down, slowing from over 3% in the 1960s to approximately 1% in the&nbsp;&rsquo;80s.&nbsp;<sup><a href="https://en.wikipedia.org/wiki/Productivity_paradox" target="_blank">2</a></sup></p> <h1>The Electrification of Industry</h1> <p>To gain insight into what was happening in the age of computing,(aka the Third Industrial Revolution), it is helpful to look at the second revolution, the electrification of industry.</p> <p>Electric motors were available to the industry starting in the early 1880s. &ldquo;Yet by 1900, less than 5% of mechanical drive power in American factories was coming from electric motors. The age of steam lingered.&rdquo;&nbsp;<sup><a href="https://www.bbc.com/news/business-40673694" target="_blank">3</a></sup>&nbsp;It wasn&rsquo;t until the 1920s, four decades after its introduction, that the electric motor started to have a significant impact on factory productivity.&nbsp;<sup><a href="http://www.dklevine.com/archive/refs4115.pdf" target="_blank">4</a></sup></p> <p>In the age of steam, factories organized their machinery in a straight line because each machine had to draw its power from a belt connected to a very long steam-powered drive shaft. There were early adopters who added electric motors to their factories. Still, these adopters tended to string out the electric machines in straight lines similar to the stream-driven lines they were replacing.</p> <p>Electrification offered considerable industry benefits. First, instead of one large steam engine with a long and heavy shaft running the length of the building, each machine could have its own, much smaller electric motor. Factories could be laid out quite differently. &ldquo;Now, managers were free to design workspaces that optimized each task and were able to experiment and improve production processes.&rdquo;&nbsp;<sup><a href="https://www.forbes.com/sites/gregsatell/2016/06/12/it-takes-a-lot-more-than-a-big-idea-to-change-the-world/#61a027cc6a7e" target="_blank">5</a></sup></p> <h1>Rethinking the Implications of a New Technology</h1> <p>Why did it take the industry close to 40 years to realize the benefits offered by electrification? The prime reason was that factory floor managers did not stop to rethink the implications of a new technology. They did not consider how the factory&rsquo;s processes, organization and structures needed to change to capture the benefits of electrification.</p> <p>Which brings us back to Robert Solow&rsquo;s observations on the low ROI in the computer age. Economists Eric Brynjolfsson and Lorin Hitt published a study showing that the key to capturing the benefits offered by computers was the same as that for electrification.&nbsp;<sup><a href="https://www.aeaweb.org/articles?id=10.1257/jep.14.4.23" target="_blank">6</a></sup></p> <p>Their conclusion was that new processes, new worker skills and new organizational and industry structures where the major drivers of benefit realization. They went on to show that the complementary investments in the organizational changes required to realize the benefits of automation were as much as an order of magnitude larger than the investments in the computer technology itself. It turns out that acquiring new technology is the easy bit. Changing the business to capture the benefits of the technology is the hard&nbsp;part.</p> <h1>Understanding The Technology</h1> <p>For the first 50 years of the computer age, automation tended to be little more than the creation of electronic file cabinets &ndash; lots of data and spreadsheets but no significant process or structural changes. But by the start of the 21st&nbsp;century, with the rethinking of workflow and the automation of such things as business&ndash;customer interactions, the benefits and rewards of computer technology where finally being realized in a significant&nbsp;way.</p> <p>What all of this means is that simply dropping a new technology into an existing business is unlikely to provide a significant return. Benefiting from a new technology requires understanding the implications of the new technology and then reshaping the business based on those implications.</p> <p>The other key &ndash; and somewhat frustrating &ndash; learning is that it takes organizations somewhere between 40 and 50 years to realize that the world has changed and that business, as usual, will no longer&nbsp;work.</p> <h1>Industry 4.0 World</h1> <p>Industry 4.0 has been building up steam for some time. But it seems to have truly gotten underway at the start of the current century as the internet bloomed. This time around, the new technology is the highly educated knowledge workers who are connected to exponentially expanding fields of knowledge.</p> <p>The opportunity to be realized from this new technology is ongoing value creation. This continuous creation of value will require leaders who know how to build environments that foster the creativity of the workers who occupy them. In the 4.0 World, managers will need to manage the ether, the space between individuals. For it is this space, otherwise known as the organization&rsquo;s culture, that will determine people&rsquo;s ability to work together and build on each other&rsquo;s thinking in the pursuit of value creation.</p> <p>If past industrial revolutions are any indication, it seems that the guiding principle for many organizations will be &quot;<em>I will not see beyond what I have known.&quot;&nbsp;</em>As a result, it will be sometime between 2040 and 2050 before organizations, en&nbsp;masse, get their heads around this challenge. And for the few that get it now, they have a vast playing field all to themselves.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/disruptive-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Disruptive Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Technology</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/business-process-automation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Business Process Automation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/innovation-technology-it" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Innovation Technology (IT)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="It Takes 50 Years - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/it-takes-50-years"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 25 Jun 2020 21:31:26 +0000 Ron Wiens 1801 at https://www.futureofsourcing.com https://www.futureofsourcing.com/it-takes-50-years#comments Sourcing Star Interview: William Crane https://www.futureofsourcing.com/sourcing-star-interview-william-crane <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/William%20Crane_FOS%20Individual%20Award_Interview%20Graphic.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/William%20Crane_FOS%20Individual%20Award_Interview%20Graphic.png" title="Sourcing Star Interview: William Crane" class="colorbox" rel="gallery-node-1604-OP6uQuWd7UQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/William%20Crane_FOS%20Individual%20Award_Interview%20Graphic.png?itok=6NE-ezhM" width="624" height="325" alt="Sourcing Star Interview: William Crane" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>This October, the&nbsp;<a href="https://futureofsourcingawards.com/?__hstc=215510152.344406f4865c40604cf6029be7e958e0.1543422516683.1570588998096.1570634530778.644&amp;__hssc=215510152.2.1570634530778&amp;__hsfp=2721840510" target="_blank">Future of Sourcing Awards</a>&nbsp;will celebrate individuals newer to the industry whose thought leadership and expertise have shown promise that is likely to have a lasting impact on the industry. Below, read about Sourcing Star Finalist William Crane.&nbsp;William Crane is the CEO of <a href="https://www.industrystarsolutions.com" target="_blank">IndustryStar</a> and a trusted advisor in supply chain with demonstrated results starting, launching and enhancing procurement, logistics, supplier quality and manufacturing organizations.</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <h3><em>How did you get into this field &ndash; was it purposeful or by accident?</em></h3> </div> <div>I have always been obsessed with new technologies so when I was exploring what major to pursue during my early studies I jumped at the chance to focus on sourcing as a perfect blend of technical and commercial challenges to solve. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>In what ways do you feel your professional contributions have influenced or transformed the industry? (This could be a new approach or methodology, the application of an existing technology in a completely new way, significant thought leadership or even a career of inspiring others.) </em></h3> </div> <div>IndustryStar&rsquo;s on-demand supply chain managed services and cloud software,  Supply Chain as a Service, has enabled many sourcing professionals to save money while freeing up their time to focus on the next big thing. The disruptive technologies that we have partnered with leaders to take from idea to production- from sustainable electric autonomous vehicles, to lifesaving medical devices, to timesaving consumer products has made an impact on people&rsquo;s lives and the planet which has been greatly rewarding. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>In your opinion, what are the biggest challenges facing the industry today and what should be done to solve them?</em></h3> </div> <div>Many industries are undergoing disruptive market shifts. Mobility for example is redefining the 100 year old definition of what a vehicle is...do we own it? rent it? New technologies are playing a huge part in this as startups and blue blood OEMs race to bring electric and autonomous vehicles to market. Further, new business models are launching seemingly daily leveraging last mile delivery robots to deliver our online packages. Our success as sourcing professionals in this new dynamic is becoming less dependent on what happens inside our four walls and more dependent on the ecosystem surrounding our business. We need to change and change fast. &nbsp;</div> <div>&nbsp;</div> <div>We need to take the next leap in advancing the profession&rsquo;s value add toward building and fostering an ecosystem of strategic supply partners. In order to free up our valuable time to accomplish this, we need to outsource the tactical day-to-day blocking and tackling of select direct spend categories to trusted managed services firms. Further, we need to lean into bleeding edge software technologies from cloud, to blockchain to artificial intelligence to increase our productivity. Our personal, professions and company&rsquo;s success depend on our ability to reinvent ourselves faster than the industries we currently support so that we can lead into the future. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>Looking at the whole of your career, what do you consider to be your greatest achievement? </em></h3> </div> <div>Founding and growing IndustryStar. Our team has accomplished a lot in a short period but are just getting started and couldn&rsquo;t be more excited about what the future holds. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What three words do you feel your colleagues and peers would use to describe you?</em></h3> </div> <div>Entrepreneur, Innovator, Doer &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What advice do you have for those who are new to the profession or considering entering the industry?</em></h3> </div> <div>Pursue experiences that you love not money, titles or what others think you should be doing. The funny thing is&hellip; chasing work that is impactful and rewarding will best enable you to maximize your reward, no matter how you define it. &nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/cloud-software" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cloud Software</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/disruptive-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Disruptive Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/future-of-sourcing-awards" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Sourcing Awards</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/direct-spend" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Direct Spend</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Sourcing Star Interview: William Crane - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/sourcing-star-interview-william-crane"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 17 Sep 2019 16:13:35 +0000 William Crane 1604 at https://www.futureofsourcing.com https://www.futureofsourcing.com/sourcing-star-interview-william-crane#comments Partnering for Purpose: Technology Powered Networks Leading Change https://www.futureofsourcing.com/partnering-for-purpose-technology-powered-networks-leading-change <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Partnering%20for%20a%20purpose624x325.jpg"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Partnering%20for%20a%20purpose624x325.jpg" title="Partnering for Purpose: Technology Powered Networks Leading Change" class="colorbox" rel="gallery-node-1285-OP6uQuWd7UQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Partnering%20for%20a%20purpose624x325.jpg?itok=PHHwRRiu" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>Much has been written about the ways in which <a href="http://www.futureofsourcing.com/accelerating-ethical-business-can-technology-help" target="_blank">technology can be used to drive not just efficient businesses</a>, but ethical ones. The spotlight is squarely on emerging and disruptive applications and the impact they can have on the world. But what is often overlooked is the true engine behind these things succeeding: partnership. &nbsp;</div> <div>&nbsp;</div> <div>Around the world, there&rsquo;s an increased urgency to solve some of society&rsquo;s biggest problems among businesses and consumers alike. With over 3 billion people globally lacking access to waste management, 48.5 million individuals enslaved today and over 5 trillion pieces of plastic floating in our oceans, the sheer magnitude of what needs to be tackled is daunting. &nbsp;</div> <div>&nbsp;</div> <div>Technology alone, no matter how innovative, can&rsquo;t solve all these problems. As they say, it takes a village to raise a child. The same can be said when it comes to driving purpose. Digital networks are powerful communities that connect like-minded people who share common values, visions and goals. And there is tremendous strength in the collective ideas of these communities and their ability to bring about change. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div>Take business networks. Though sometimes thought of as merely a way for buyers and sellers to connect to do business, business networks can enable companies to find trading partners who not only support their operating and cost objectives, but also their sustainability goals. Buyers can, for instance, identify diverse suppliers or tie their <a href="http://www.futureofsourcing.com/balancing-costs-with-conscience" target="_blank">costs to conscience</a> and purchase from businesses that align with causes that matter to them. &nbsp;</div> <div>&nbsp;</div> <div>And when these networks are surrounded by an ecosystem of partners, additional innovations can be brought to the table and quickly unleashed to drive more sustainable supply chains and ethical business. Non-governmental organizations (NGOs) like the <a href="https://www.sustainabilityconsortium.org" target="_blank">Sustainability Consortium</a>, <a href="https://www.billiondollarroundtable.org" target="_blank">Billion Dollar Roundtable</a> and others tied to specific industries such as consumer goods and high tech are a great example of this. In connecting stakeholders such as policy makers, social workers and social entrepreneurs with enterprises that share a common purpose and have the resources to address them, it can effect real change. &nbsp;</div> <div>&nbsp;</div> <div>In September 2015, world leaders adopted the <a href="https://www.un.org/sustainabledevelopment/sustainable-development-goals/" target="_blank">United Nations Sustainable Development Goals (SDGs)</a>, aimed at creating sustainable prosperity for all in emerging and developed regions. Three years later, many companies are beginning to embrace these goals, committing their people and products to do things like eradicate slavery from supply chains and document every living creature on the planet to protect endangered species. SDGs are also in place that intend to end deforestation, promote environmental awareness, eliminate gender inequality and educate people who might never have been inside a classroom. This is the power of partnership. And a testament to the fact that when united by a common cause and enabled by technology, businesses &ndash; and the people behind them &ndash; can do amazing things.&nbsp;</div> <div>&nbsp;</div> <div>Next month, we&rsquo;ll hear from some of the leaders and technologists driving change through these networks and the partner ecosystems surrounding them.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/ethical-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Ethical Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/disruptive-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Disruptive Technology</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sustainable-supply-chains" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainable Supply Chains</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital-networks" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Networks</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/non-governmental-organizations-ngos" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Non-governmental organizations (NGOs)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Partnering for Purpose: Technology Powered Networks Leading Change - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/partnering-for-purpose-technology-powered-networks-leading-change"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 02 Oct 2018 17:51:42 +0000 Padmini Ranganathan 1285 at https://www.futureofsourcing.com https://www.futureofsourcing.com/partnering-for-purpose-technology-powered-networks-leading-change#comments Is the Tesla Semi the next big thing in logistics? https://www.futureofsourcing.com/is-the-tesla-semi-the-next-big-thing-in-logistics <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/tesla%20semi624x325.jpg"><a href="https://www.futureofsourcing.com/sites/default/files/articles/tesla%20semi624x325.jpg" title="Is the Tesla Semi the next big thing in logistics? " class="colorbox" rel="gallery-node-1274-OP6uQuWd7UQ"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/tesla%20semi624x325.jpg?itok=YQqPm7Q3" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div style="clear:both;"> <div>Well over 100 years ago, the gasoline powered internal combustion engine revolutionized the &ldquo;modern&rdquo; transportation industry. Back then, the term modern could be used for technologies like the linotype machine or the electric fan. Fast forward to today and we are standing on the brink of an innovation that is set to rewrite transportation, and in turn, the logistics Industry. &nbsp;</div> <div>&nbsp;</div> <div>Tesla Inc., Elon Musk&rsquo;s US-based company specializing in electric vehicles, has fast grown into the leader in electric vehicles in the auto sector. Their latest product &ndash; Tesla Semi &ndash; has been called the safest and the most comfortable truck ever. That&rsquo;s not Elon bragging, those are from third-party reviews.&nbsp;</div> </div> <div style="clear:both;"> <p paraeid="{5514423c-d5b2-4137-9007-03fc97773434}{87}" paraid="1252698657"><span xml:lang="EN-IN">The&nbsp;</span><span xml:lang="EN-IN">Se</span><span xml:lang="EN-IN">mis are</span><span xml:lang="EN-IN">&nbsp;expected to be priced at $150,000 for the 300-mile-range variant (the truck can cover 300 miles in a single charge) and $180,000 for the 500-mile-range variant.&nbsp;</span><span xml:lang="EN-IN">Here are some&nbsp;</span><a href="http://fortune.com/2017/11/25/tesla-semi-price-180000/" target="_blank"><span xml:lang="EN-IN">interesting</span><span xml:lang="EN-IN">&nbsp;facts&nbsp;</span></a><span xml:lang="EN-IN">about the</span><span xml:lang="EN-IN">se</span><span xml:lang="EN-IN">&nbsp;mean machine</span><span xml:lang="EN-IN">s</span><span xml:lang="EN-IN">:&nbsp;</span></p> </div> <p><img alt="" src="http://www.futureofsourcing.com/sites/default/files/Tesla%20Facts%20Sheet%20Image.png" /></p> <div>The Tesla Semi seems like the more economical choice when compared to the common truck, not to mention a smaller impact on the environment. But cost reduction and eco-friendliness are not the only benefits that this smart truck offers to companies involved with the logistics industry.&nbsp;</div> <div>&nbsp;</div> <div>A huge problem looming over the trucking industry in North America is the shortage of truck drivers, which is limiting the supply of truckload capacity, consequently pushing costs higher. A Tesla Semi is a semi-autonomous vehicle which can be operated for an entire day, which is three times as much as a conventional truck driven by a single driver. This presents an opportunity to increase capacity with a reduced fleet. &nbsp;</div> <div>&nbsp;</div> <div>The metamorphosis is in motion: trucking super users such as UPS, DHL, JB Hunt, Ryder and JK Moving are just some of the big names that have already pre-ordered Tesla Semis, which are set to roll out in 2019. Even organizations with significant logistics operations like Pepsi, Anheuser-Busch and Walmart are leading the race to digitize their truckload transportation. &nbsp;</div> <div>&nbsp;</div> <div>With all the buzz around this truck-sized disruption, questions remain to be answered. The recent death associated with an autonomous Uber vehicle has raised even more safety concerns. Even though the Tesla Semi is semi-autonomous, there are laws governing how long a driver can spend behind the wheel. Does it matter if the driver is actually driving or not? Will there be special training and new classes of licenses for operators of autonomous commercial vehicles? We are still in the learning stages.&nbsp;</div> <div>&nbsp;</div> <div>It may take a while to figure out all these questions because for all this talk of revolutionizing the delivery industry, even Tesla has failed to deliver their products on time.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/logistics" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Logistics</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/tesla" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tesla</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/disruptive-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Disruptive Technology</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/automation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Automation</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Is the Tesla Semi the next big thing in logistics? - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/is-the-tesla-semi-the-next-big-thing-in-logistics"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 07 Sep 2018 14:00:40 +0000 Tejas Thakur 1274 at https://www.futureofsourcing.com https://www.futureofsourcing.com/is-the-tesla-semi-the-next-big-thing-in-logistics#comments