Company Overview
Yusen Logistics is an international logistics enterprise offering various services, including ocean and open cargo freight forwarding, warehousing, distribution, and supply chain management solutions. Founded in 1955 by Kokusai Ryoko Kosha, the company operates in 47 countries and territories worldwide with 25,562 employees, helping customers reach new markets and helping individuals grow their businesses. Yusen Logistics operates in several sectors: aerospace, food, technology, automobility, retail, and healthcare (Yusen et al.). The company’s main activities include managing supply chains, shipping items, warehousing, and distribution, including air freight, and offering customized logistics solutions to meet the requirements of companies across the globe.
Key Technologies Adopted
Yusen Logistics (Hong Kong) has adopted digital technology to improve efficiency and optimize logistic operations. The following are key technologies that Yusen Logistics (Hong Kong) has implemented: One is the Transportation Management System software. The company utilizes Yusen Vintage transportation management software to optimize cargo transportation planning, execution, and monitoring. The company utilizes the software to manage vehicle movements, automate cargo arrangements, and maximize cargo load consolidation to reduce expenses. Yusen Logistics allows customers to use the transportation management software to track their goods during delivery. The software improves efficiency and communications between the customers, drivers, and the company.
Another key technology adopted by Yusen Logistics is GPS tracking. Yusen Logistics tracks vehicles and cargo during transportation using telematics and GPS tracking system VISIONi (Yusen Logistics, 2018). VISIONi provides a strictly regulated operation across ninety GDP-licensed haulers for the pan-European healthcare supply chain as part of its Control Tower system. While security bulletins constantly respond to new information, real-time, round-the-clock monitoring minimizes danger. It allows drivers to adjust their routes based on the most recent sensitive or prohibited areas. This technology ensures timely delivery of goods, mitigates delays, and enhances accurate delivery to Yusen logistics customers.
Adoption of Digital Technology in Transportation
Logistics services depend heavily on transport because they are visible means of moving goods. The principal objective is to efficiently transport goods from their point of source to a designated location while reducing costs and expenses associated with damage (Adekunle & Ruth, 2023). Yusen Logistics has embraced digital technologies in the transportation sector to improve efficiency both in productivity and service delivery and improve customer expectations. Yusen Logistics has implemented a transportation management system, a software called Yusen Vintage, that helps the company maximize efficiency in the company’s logistics processes (Yusen Logistics, 2018).
The software helps automate routing procedures, improve decision-making, and enhance cargo monitoring. Therefore, this technology has enabled the company to improve its productivity, simplify transportation processes, and minimize rates of human errors. For instance, Yusen Logistics obtains real-time insight into the movement of cars and cargo by combining transportation management software with tracking GPS devices and telematics systems. This allows for preemptive action in the event of route deviations, delays, or other concerns. With this real-time information, Yusen Logistics can better fulfill customer delivery obligations, reduce transit delays, and give exceptional customer service.
Challenges and concerns
Despite the various advantages associated with using digital technology in transportation management, businesses such as Yusen Logistics encounter various detrimental challenges and effects in the implementation process:
Cost: Transportation is one of the primary costs to logistic companies; any increase in transportation costs increases the aggregate cost. Griffiths (2023) explains that expenses include the cost of purchasing the technology and any necessary infrastructure enhancement; it might take some time to see an instant return on investment, making it challenging to win over stakeholders. Transportation management software, Yusen Vintage, telematics systems, and VISIONi GPS technology all require a significant amount of initial investment to be implemented. In addition, costs increase due to the increase in cost of software updates, regular maintenance, and training. Yusen Logistics needs to evaluate the return on investment and the advantages of investing in digital technology to outweigh the disadvantages in the long run.
Data security: Shipment details, client information, route plans, and other sensitive information are exchanged during daily operations. This increased connection in the supply chain increased the risk of cyber-attacks (Griffiths, 2023). Logistic companies must enhance data security and confidentiality to avert cyberattacks, data breaches, and unwanted access. Yusen Logistics needs to put strong cybersecurity safeguards, encryption methods, and access controls into place to protect confidential data from potential security flaws and cyberattacks.
Workforce Training: For the technology to be fully adopted in the company, work persons need to be fully skilled in equipment, become accustomed to new tools, and develop a digital work ethic (Iyer, 2021). Ensuring that employees are capable of utilizing transportation management software and GPS tracking requires Yusen Logistics to invest substantially in employee training. It will enable employees to optimize the merits of digital technology and promote continuous improvement in transportation management procedures by receiving thorough training and continual assistance. The customers also use Yusen Vintage, which poses another significant challenge due to the inability of the company to train the customers at their convenience, leading to a digital tools communication barrier.
Resistance to Change: Change resistance undermines companies’ adoption of new technologies. The fear of uncertainty among employees (regarding the fear of losing jobs) and inadequate knowledge of digital tools make them reluctant to adopt technologies. Organizations can overcome the resistance by enhancing robust explanations to personnel about digital transformation’s merits and integrating them into decision-making. Therefore, Yusen Logistics can overcome resistance by cultivating a culture of creativity, teamwork, and ongoing learning.
In summary, Yusen Logistics’ integration in digital transformation in transportation management indicates the company’s dedication to innovation, efficiency, and exceptional customer service. Adopting Yusen Vintage transportation management software, the VISIONi GPS tracking system enhances transportation operations, boosts total supply chain visibility, and increases delivery performance. However, challenges such as cost, data security, worker training, and opposition to change in the company must be overcome before digital technology can be successfully used in transportation management. Therefore, Yusen Logistics must adopt a calculated strategy, provide resources for employee education, and develop a workforce equipped with digital skills that may propel innovation and competitiveness within the logistics sector to tackle these challenges.
References
Yusen Logistics. (n.d) Global Logistics and Supply Chain Management. https://www.yusen-logistics.com/about-us/about-us-overview
Adekunle, Simon & Ruth, Isokpan. (2023). Technological adoption in logistics management: Review of literature and agenda setting. 3. 119-134.
https://www.researchgate.net/publication/372889145_Technological_adoption_in_logistics_management_Review_of_literature_and_agenda_setting/citation/download
https://www.yusen-logistics.com/digital-solutions/yusen-vantage/yusen-vantage-focus
https://www.yusen-logistics.com/hu_en/resources/press-and-media/29356
Griffiths, C. (2023). Four technology problems are facing logistics, and how can they be overcome? Chesterfield. https://aag-it.com/4-technology-problems-facing-logistics/
Iyer, L. S. (2021). AI-enabled applications towards intelligent transportation. Transportation Engineering, p. 5, 100083.
write