The logistics industry is fast-paced and for organizations to stay in the competition and be successful, they need to stay abreast of all the new trends that are changing the way business is done. The past two years have been tough for the logistics industry with the supply chain crisis and ever-increasing freight costs, which are still on the rise. The dearth of containers has resultantly pushed the freight rates higher and higher. For years, freight forwarding and logistics have been a brick and mortar business, relying on traditional operations processes. But with the advent of technology, the game is changing. Here are some of the shifts being experienced in the logistics sector.
1) Artificial Intelligence :
With AI, handling fleets is efficient with the help of data analytics software. It also helps in optimizing routes based on weather or traffic patterns. AI is already being used in the freight management sector, but it still has room to grow as an individual industry. It also helps to make more accurate predictions regarding the status of a vehicle, which can help with fuel allocation and scheduling maintenance.
Using AI robots in warehouses can be beneficial in terms of helping humans for picking, sorting, transport, and stow packages. According to the 2020 MHI Annual Industry Report, only 12% of businesses are using AI in their warehouses, but it is expected to cross 60% in 6 years. Also, AI can identify damaged items easily, which is crucial in customer satisfaction. Along with that, it can predict machine failures before time, to prevent any losses. Delivery drones can prove very efficient in terms of pharma industry products, with a shorter life span.
2) Growth of Autonomous Vehicles :
Autonomous vehicles are changing the dynamics and making it easier than ever before to ship goods around the world without worrying about driver shortages. Logistics companies, such as DHL and UPS, have invested in research in order to develop autonomous delivery vehicles. They see it as reducing costs and increasing efficiency by automation of delivery packages.
The American Trucking Association estimates a shortage of as many as 174,500 truck drivers by 2024, due to an aging workforce and the difficulty of attracting younger drivers. A truck that runs completely without a driver can be a concerning point for many. Anyways, the world is working hard to create safer technology and we will soon be ready to accept it.
3) Adoption of Cloud-Based Systems :
Any efficient logistics service requires synchronization between various modes of communication, as well as a need to keep a tab on how the movement of goods and their handling are being monitored. The benefits of cloud computing include less hardware maintenance, easy scalability, increased reliability, improved security through data encryption and reduced costs. These new technologies can help shippers decrease their operating costs, increase efficiency, and improve back-office operations.
Cloud Computing makes it easier to manage the financial ups and downs in a business by easily adapting to the current figures. If the organisation is dealing with small quantities of products or millions of dollar worth products, cloud computing can ramp up and down according to the needs. This would be quite difficult when it comes to manual management. Many of the B2B solutions across sectors are switching to the cloud and this trend will accelerate in the future.
4) Blockchain Technology Integration
A blockchain supply chain helps participants record price, date, location, quality, certification, and other important information to more efficiently manage the supply chain. Leveraging blockchain technology helps organizations improve visibility into their inventory levels. This can be done by providing timely updates about when products are shipped or delivered to customers.
Blockchain technology offers solutions that could make logistics operations more efficient, secure and transparent than ever before. Blockchain’s potential uses involve tracing food items or monitoring cargo shipments. As blockchain gains publicity, large corporations and startups are using the technology outside of the financial services industry. Blockchain Technology Integration in logistics will help increase tremendous business value.
Technology has transformed our lives in so many ways. It’s time that we reap its benefits in the logistics and supply chain space as well.
