Convergence: Silos crumbling in the face of change (Part 1)?
We know where we are today, we don’t know where we’re going tomorrow and that creates some anxiety, because change is uncomfortable. It’s the unknown that challenges us emotionally, physically and professionally.
Shipping connects the globe, we all know that. But, shipping isn’t connected. We have risks today that we are facing if we do not address change. If we stay with the status quo we are at risk of inefficiency, higher costs, vulnerability, poor communications and lack of a positive image.
Inefficiency extracts its price. Fleet and port efficiencies translate into cost savings. Are you willing to walk away from the opportunity to save money? You invest a little, you gain a lot. Digitalization and blockchain are two opportunities for us to become more efficient as an industry.
As an industry we’re also vulnerable. Amazon and Alibaba are entering our industry in the logistics part of it. They demand efficiency. And if, we as an industry, can’t meet their demands they’re will come in and do it themselves.
The second area of vulnerability is cyber security. It’s not a question of ‘if’ it’s a question of ‘when’. The IMO is going to be requiring you to have a cyber security plan by 2021. But why wait? The incidents of cyber-attacks and cyber invasion are happening every day. Take action now.
Then we get to the issue of silos. It creates a poor level of communication. Ships don’t talk to ports, don’t talk to trucks. We have what we call an intermodal trade- but it isn’t communicating!
We are one shipping industry with the opportunity to leverage the size of our industry, the breath and the strength of our industry. So, let’s get rid of the silos and let’s start to integrate as an industry.