Innovations have reached the logistics sector, and while the industry has always focused on fast and safe shipping of goods, the market is expected to become ever safer. WebEye, a Hungarian IT solutions provider for logistics firms, navigates the Budapest Business Journal through the changes it predicts in the near and far future.
WebEye International Ltd., established in 2006, chiefly focuses on supporting international transportation, making it more direct, efficient and safer. The IT firm’s major product is a satellite-based vehicle tracking system called WebEye, which the company says is a unique development, offering various telematics solutions and supporting the safety of transportation processes. Currently the Hungary-based group serves 14 countries in Europe through subsidiaries and partners, having fed the region with more than 55,000 active WebEye units.
While a general goal in logistics and has been to ensure the fast and safe transportation of goods, the future lies in visibility, optimization and automation of processes and vehicles. Demand from shippers and third-party logistics companies has already increased towards carriers for such innovations, which should inevitably lead to the further development of the digitalization of logistics.
“In no other time in logistics have we had this much innovation,” Károly Deszpot, CEO of WebEye Magyarország Kft., tells the BBJ. “We can see this growing interest not only in our own customer base, but also in the overall growth of the telematics industry.”
In the short-term, demand for digitalization is expected to grow horizontally, which Deszpot describes as more companies starting to use telematics solutions, and vertically, which he says means the expansion of the range of services, such as mobile solutions. In the mid-term, the high demand for data will remain, however it will appear in a more targeted way, which in Deszpot’s view will be aimed at specific areas and sub-processes.
“The Internet of Things will affect more parts of the supply chain and thus more work processes will be channeled into one transparent system. The vast amount of data, which is incomprehensible by human measurements, will contain useful information that can contribute to establishing more efficient processes. We believe that the future will bring more grounded, data driven decision making in the logistics field, even at smaller companies,” the CEO envisages.
Although it is as yet uncertain how the market will be improved through innovation, the most likely scenario is that a network of automated processes and vehicles will be incorporated into the same transparent system.
“This will give companies total control over their assets, total flexibility with maximum capacity utilization. It’s no longer going to be the dispatchers who choose which vehicle will be attached to a specific consignment order. There will be a fully automated system, which will take into consideration lots of factors when choosing the best vehicle, route and time of dispatch for the goods. There may be parts of the trip where the packages or pallets can even be shipped with other suppliers’ assets for the most cost-effective delivery,” Deszpot believes.
In the long run, automation will restructure jobs, which does not necessarily mean positions will be lost, but rather that new ones will emerge that will focus on added values, instead of simpler and repetitive tasks. “Digitalization helps companies reach their best selves. Telematics companies such as WebEye help companies reach this by giving them the necessary data to see where they can grow and evolve,” Deszpot concludes.
For a deeper investigation of innovation in Hungary, look out for a special focus on the subject in our next issue, out on July 28.