Country for PR: Australia
Contributor: AAP Medianet International
Tuesday, October 10 2017 - 09:00
AsiaNet
Unisys Predicts the Rise of an Even Smarter Warehouse and New Strategic Alliances That Will Transform the Cargo Industry by 2020
SINGAPORE, Oct. 10, 2017/Medianet International-AsiaNet/ --

IoT and voice AI enabled smart devices and systems, warehouse drones and 
strategic alliances between airlines and distributors will be key to the air 
freight industry capitalising on the e-commerce market – Venkatesh Pazhyanur, 
Unisys 

"The cargo industry needs to embrace disruptive technologies from the consumer 
world, including Internet of Things (IoT), digital assistants and drones, to 
increase efficiency and meet customer expectation for greater transparency 
throughout the supply chain," said Venkatesh Pazhyanur ( 
http://www.unisys.com/industries/commercial/transportation/Thought%20Leader/venkatesh-pazhyanur-id-3108), 
senior industry director of Freight Solutions for Unisys Corporation 
(http://www.unisys.com/) (NYSE: UIS). 

The Asia Pacific air cargo industry is experiencing growth and transformation 
driven by rapidly increasing capacity supply on passenger flights, and the 
shift to business-to-consumer small parcel shipments as a result of e-commerce. 
Growing passenger demand will increase the number of passenger flights and add 
to cargo capacity supply. The International Air Transport Association (IATA) 
expects the number of air passengers globally will almost double between 2016 
and 2035, with the greatest growth in Asia Pacific – particularly in China and 
India1. Simultaneously, the popularity of e-commerce is changing the nature of 
cargo shipments, incrementally increasing the number of small parcels – which 
is predicted to grow 5 percent annually in mature markets and 17 percent 
annually in China2.

"At Unisys we predict these market pressures will bring innovation in three 
areas in the cargo supply chain: smart warehouses will become even smarter, 
drones will finally take off in the cargo supply chain – but inside the 
warehouse, and new alliances between airlines and global distributors will 
enable longer term capacity management. Much of the underlying technologies are 
already being used in other sectors – including the consumer world. But now, 
more than ever, cargo operators will be forced to embrace such innovation to be 
more efficient, nimble and proactive in an increasingly competitive and price 
conscious market," said Mr Pazhyanur.

Unisys cargo experts believe the following predictions will become reality 
within the next five years or less:

1)	Smart warehouses will become a reality
To meet the growing demand for small parcel deliveries, warehouses will 
transform from a storage location, to a dynamic facility using IoT and voice 
artificial Intelligence (voice AI) enabling faster processing of more shipments 
to generate a higher return on the real-estate investment. Just as connected 
wearable devices such as smartwatches are becoming mainstream in the consumer 
world, IoT-based technology will create the "smart warehouse" of the future. 
Recent innovations such as smart glasses used to display information triggered 
by a barcode or QR code on a container3 will be taken to a new level by 
incorporating scanners to automatically capture and input information into the 
warehouse system, and integrating voice AI to initiate actions. Similar 
technology is already used in digital assistants such as Siri, Cortana or 
Amazon Echo. Unisys expects cargo operators to invest in converting machine 
commands to voice within the next three years. 

2)	Drones will be used inside the warehouse
While drones have become a familiar way to provide TV sports aerial footage, 
the much-anticipated mainstream rollout of drones to deliver parcels to the 
customer’s doorstep is hampered by flight space restrictions, government 
approvals and privacy considerations. Unisys predicts the more immediate 
application of drones in the cargo supply chain will be within the confined 
space of warehouses to conduct inventory checks more often and more accurately, 
replacing the largely manual process. Beyond locating lost or misplaced items, 
the drones will use sensors to monitor environmental information such as light 
or temperature for perishable food, pharmaceuticals or livestock, and raise 
alerts to unusual noise or movement that may indicate animals are in distress. 
Unisys predicts this within the next 12 months.

3)	New alliances between airlines and global distributors will be forged for 
long term revenue optimisation
With cargo capacity potentially increasing faster than cargo demand due to 
extra passenger flights and larger aircraft, cargo capacity management has 
become the number one challenge for airlines. In this environment of 
unconstrained capacity, the traditional approach to yield management will not 
work as airlines may dump cargo space onto the market, creating a price war. 
Unisys predicts a fundamental move to longer-term revenue optimisation based on 
strategic alliances between airlines and organisations with large ongoing 
delivery requirements such as postal authorities, major online retailers, 
global distributors and supply chain management companies. This will require 
airlines to provide their alliance partners with transparent real-time access 
to available capacity and predictive analytics to determine best routes based 
on speed, reliability and cost. This expectation for visibility will also 
extend to the "last mile" of the business-to-consumer cargo supply chain, 
leading to the development of mobile apps to allow the final recipient to be 
able to track the approach of their delivery – similar to how consumers 
currently track an approaching taxi or Uber.

Visit Unisys at the PayloadAsia 2017 (http://conference.payloadasia.com/) 
conference on 11-12 October in Singapore. 

1 - International Air Transport Association (IATA) 20-Year Air Passenger 
Forecast (http://www.iata.org/pressroom/pr/Pages/2016-10-18-02.aspx).

2 – McKinsey & Company Parcel delivery – the future of the last mile ( 
http://www.mckinsey.com/~/media/mckinsey/industries/travel%20transport%20and%20logistics/our%20insights/how%20customer%20demands%20are%20reshaping%20last%20mile%20delivery/parcel_delivery_the_future_of_last_mile.ashx).


3 – SATS media release: SATS Gears Up for the Airports of the Future with 
Augmented Reality Technology ( 
https://www.sats.com.sg/Media/NewsContent/5Sep17-SATS%20gears%20up%20for%20the%20airports%20for%20the%20future%20with%20augmented%20reality%20tech.pdf 
)

About Unisys
Unisys is a global information technology company that specialises in providing 
industry-focused solutions integrated with leading-edge security to clients in 
the government, financial services and commercial markets. Unisys offerings 
include security solutions, advanced data analytics, cloud and infrastructure 
services, application services and application and server software. For more 
information, visit www.unisys.com. Follow Unisys on Twitter 
(https://twitter.com/UnisysCorp) and LinkedIn ( 
https://www.linkedin.com/authwall?trk=gf&trkInfo=AQHGQ7Jrj11t-wAAAV7-digwCLF_Wc2RLMEjs-w_a4mhMiskgKl6NnPqKyTp3vIrbM2wigiPXIt96Ru1gLresfHZ2eAwln4XRamIoKUenqdwnq9Bz5C_NNw7WgIiP0KNRlXdxrE=&originalReferer=&sessionRedirect=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Funisys 
). 

About Unisys Asia Pacific 
In Asia Pacific, Unisys delivers services and solutions to clients in more than 
15 countries across the region. For more information visit: www.unisys.com.au. 
Follow us on twitter @UnisysAPAC (https://twitter.com/UnisysAPAC), LinkedIn 
(http://www.linkedin.com/company/unisys), and in China on: 
www.weibo.com/unisyschina and WeChat Official Account: Unisys China.

Contact:	
Claire Hosegood, Unisys Asia Pacific, 
+61 411 253 663 claire.hosegood@au.unisys.com

Unisys and other Unisys products and services mentioned herein, as well as 
their respective logos, are trademarks or registered trademarks of Unisys 
Corporation. Any other brand or product referenced herein is acknowledged to be 
a trademark or registered trademark of its respective holder.
UIS-C

SOURCE: Unisys Corporation