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4flow trend monitor - September 28, 2023
Connectivity – cloud and APIs generate value by communicating and computing processes
Affected industries: All industries (B2B and B2C), and especially e-commerce
Affected supply chain segments: All segments, especially courier, express and parcel (CEP) services, with an emphasis on those using data-driven processes and digital tools such as track and trace
What is connectivity in supply chain?
Connectivity refers to the use of digital technology to make information available between partners across the supply chain while reducing the cost of communication. Technologies like cloud computing and APIs (application programming interfaces) enable this connectivity. Cloud computing refers to the storage of parts of IT infrastructure on external, Internet-based servers. These servers are generally managed by specialized third-party providers that make it possible to access data storage and software solutions on various end devices and scale them according to user requirements.
An API, or application programming interface, allows a standardized exchange of information between software products. It defines which information can be accessed under which conditions. This allows authorized users in a network to automatically retrieve the data intended for their use once they are connected to an API.
Why should my business consider connectivity technology?
The market for cloud-based solutions is growing strongly as logistics players begin to recognize the advantages of the cloud, such as accessibility, reliability and scalability. Using cloud services saves businesses the costs of building their own IT infrastructure. Providers of cloud infrastructure have technical know-how to carry out the construction, management and maintenance of IT systems in a cost-efficient way.
APIs can be used, for instance, to access shipment status, communicate rates or exchange shipment information to support the calculation of a shipment’s carbon footprint. Well considered APIs enable fast communication while reducing the manual effort required.
Getting ahead of the trend
Businesses should take stock of existing cloud solutions and APIs and evaluate which services can be moved to the cloud, and which APIs add value. Is there a possibility to save costs by automating manual communication processes with APIs? Can APIs provide the necessary information to offer new services?
4flow trend monitor of digital transformation
With the fourth industrial revolution, digital connectivity plays an ever more important role in the working world. Innovative new technologies will have long-lasting effects on the way business is done. As rapid digital developments make new products, strategies and best practices available, businesses need to know where to focus their resources – and when to do it.
Authors
Holger Clasing
Head of Strategy Practice at
4flow consulting
Wendelin Gross
Head of
4flow research
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