Are APIs Our Digital Glue? If so, the Supply Chain is in Need of Glue

Jett McCandless, Founder & CEO of project44

The Rise of APIs

At the broadest level of explanation, web service APIs are a messaging format that allows data to be transmitted from one system to another in nanoseconds. They have become the basis for creating digital value chains that increase efficiency and visibility when managing networks and business operations.

Forbes has dubbed APIs as the “digital glue” holding our personal and professional worlds together. In fact, Gartner says that last year about three-quarters of Fortune–1000 companies were using public APIs to grow their business. Yet, most freight and transportation systems have yet to ride this wave.

Legacy communication systems in the logistics sector like Electronic Data Interchange (EDI) are inefficient, cumbersome technologies when compared to web-service APIs. Communication transactions are one way and there is no standardized transport mechanism. All of this leads to slow data transmission with complicated and expensive translation processes. For example, the latency of EDI 204 (used to dispatch a shipment) causes shipments to take between 30 and 120 minutes to be processed and accepted by a carrier. Can you imagine waiting at 30–240 minutes for your Uber while your phone and cab dispatch communicate process your request?

Logistics Industry: Adapt or Abort

University of Tennessee’s Global Supply Chain Institute recently held a supply chain forum focused on consolidation and efficiency in the transportation industry. During the panel discussion, Ken Evans, Chief Logistics Officer of Spirit Aerosystems highlighted the power of digitalization in the supply chain.

Ken emphasized the need to connect networks, facilitating information flow, marking a departure from legacy data transmission products resulting in a successfully connected the supply chain. What experts are not yet catching onto is that web-based APIs are the only data transmission technology that can facilitate a truly predictable and adaptable movement of goods, information and assets throughout the supply chain.

A Glimpse into the Future: APIs & Transportation

An industry with a reputation for being old-fashioned and resistant to change, startups are presented with the opportunity to bring new investment and talent to the freight business. They just need the proper infrastructure to test their new ideas and tech driven solutions. Dynamo presents the opportunity for those looking to spark new technological innovation the venue to create much needed disruption in the industry through problem solving and innovation.

Innovators and startups in the transportation industry are in search of creative solutions to address the degree of fragmentation — APIs are the only solution to better streamline freight connectivity in a real-time and flexible way. What does this mean in the future and where is the opportunity for entrepreneurs?

• Cloud based connectivity will soon generate significant changes in the movement of goods within supply chains. Drivers and equipment will be connected at all points along the route, allowing for continuous, real-time visibility and the opportunity to plan for adjustments along the route.
• Integrating tools that have less expensive and faster-to-deploy solutions will enable the transportation industry to remain competitive in today’s on-demand economy getting products from A to B to the consumer faster and more efficiently.

The degree of fragmentation in trucking and logistics demands for solutions that better streamline data transfer — the answer lies in API technology to facilitate the exchange of data and documents with the external systems in a real-time, flexible and cost-effective way. The time for innovative solutions in transportation and logistics is now.