In order to stay ahead of its competitors, United Parcel Service, Inc (UPS) is using technological innovations such as blockchain, artificial intelligence (AI), and drones to adapt to the logistics industry’s vulnerability to disruption.
UPS is using different disruptive technologies in order to stay in the lead. Technologies such as blockchain, AI, and even drones are used according to the logistics company during the inaugural of Innovation Series, organized by the Makati Business Club, Manila House, and the US-ASEAN Business Council.
According to its managing director, Mr. Chris Buono, the industry that his company is in has a great potential for disruption.
“Resource usage, growing congestion, urbanization, along with greater advances in technology, customer demand, inefficiency and new developments in materials engineering have really pushed logistics and supply chain management into a state where companies have to innovate to stay ahead of the competition,” – Mr. Chris Buono, Managing Director, UPS Philippines
In addition, Mr. Buono said that the company uses AI for data generation while drones are not just used for operations but also to reach out to rural communities, solving geographical problems that are otherwise unsolvable in traditional delivery methods.
UPS has a patent-pending blockchain technology that will be used to route packages to the supply chain. By putting it on the blockchain, it aims to have a transparent and efficiency of data to the parties involved.
“With the emergence of disruptive technologies like artificial intelligence, the blockchain, and smarter transportation, we believe that these technologies should be seen as tools that would make our people more efficient, help us work safer, and create an overall better customer service,” – Mr. Chris Buono, Managing Director, UPS Philippines
The company even developed its own applications to cater to its clients: “UPS Bot and My Choice” for customers, “Where To Go” for merchants and retailers, and “On-Road Integrated Optimization and Navigation tool, or ORION” for predictive logistics.
As of this writing, UPS has six facilities available in the country located in Cebu, Clark, and Parañaque. It also has a partnership with Air21 which allows the company to have a nationwide reach.
Previously reported on BitPinas is ShipTek Solutions and its blockchain-based platform XLOG. Its CEO and founder, Mr. Eugenio Ynion Jr. wants to disrupt the shipping and logistics industries not just by digitalizing its operations but by putting it on a logistics blockchain-platform. By using XLOG, the data can be uploaded to the blockchain which allows it to eliminate data tamperings, misdeclaration, or undervaluation. XLOG can also track transactions using military-grade GPS.