Technology and Logistics Are the Way to Go - Latest Trends In Logistics Technology

Proliferating technological innovations have been making waves across industries, and logistics is one of the most impacted sectors. Factually speaking, the logistics industry has been quite notorious for its heavy use of manual processes and the copious amounts of data that are stored in different ways and different places. Hence it perhaps has the most to gain from the implementation of new technologies.

There have undoubtedly been copious advancements for the logistics industry in recent years – areas like AI, Augmented Intelligence, Advanced Analytics, Automation, etc. to name a few. While these technologies have been continually evolving, numerous start-ups with even newer solutions, and innovations, have been cropping up at quite a rapid rate.

What follows innovations are higher expectations and standards, which means that logistics companies today need to either adapt or end up falling behind. In fact, the biggest market trend in logistics currently is the “Amazonization” of logistics which has forced the supply chain to be faster and develop capacities to get the parcel delivered to customers on the same/next day.

With added pressure coming from customers, be it individual or enterprise, the demand for services in a faster and cheaper fashion, is more pressing now than ever. Hence, with technology being the way ahead, here's taking a look at the latest trends in logistics technology, that are aiding in shaping the future:

Artificial Intelligence and Machine Learning

The logistics industry has begun integrating Artificial Intelligence solutions such as intelligent transportation, route planning, demand planning, etc.in operations over the past few years. This, however, is just the beginning – from last-mile delivery robots and sustainability solutions, to automated warehouse picking systems and predictive optimization software AI, combined with Machine Learning is looking to make major changes in demand prediction and inventory placement.·

On-demand Fulfilment Network

With the logistics industry evolving to meet the demands that digital sales channels and omnichannel business models present, on-demand warehousing which can almost be considered the Airbnb of warehousing, is rising to the top as one of the best innovative solutions for simplification of internal processes and driving growth.

Negotiating with multiple warehouses on behalf of the merchants and building a nationwide fulfilment network, on-demand services can reduce shipping costs as well as streamline fulfilment so that merchants irrespective of size can reach customers within 1 to 2 days. This means that merchants get a customised solution, that is based on their business objectives as well as inventory requirements, enabling them to compete and scale at almost an enterprise level.

Robotics

Robots can operate with high levels of precision and accuracy that is normally not achievable through regular manpower. The technology is now beginning to live up to our expectations of having a robot that is flexible as well as cost-effective for working in a distribution environment. In fact, when it comes to micro-fulfilment, the needs are very different from standard large fulfilment centres, this means that large-scale automation machines are now getting replaced by smaller bots for assistance.

Harsh Vaidya, Founder and CEO, WareIQ

Although logistical automation through robots has now begun to gain traction, there are numerous opportunities for the technology is open an app, ranging from a wide variety of outdoor applications to conveying, last-mile delivery, internal logistics, etc.

Blockchain

While Blockchain has been one of the most popular buzzwords for most industries, there has been a lack of overarching development in the real sense. Start-ups, however, are now working upon bringing Blockchain technology to the logistics industry by using public networks such as Ethereum for validating document transactions securely.

Known for its complete transparency and almost impenetrable security, blockchain will make it much easier for different carriers or shippers to share sensitive data and enable companies in creating trade finance and supply chain solutions.

Tech to Reduce Carbon Footprint

Supply chain enterprises are deemed to have a prime social responsibility of inching towards sustainability and controlling the devastating ecological impact that logistics and transportation related activities have on the environment. Digitisation of supply chain operations by using logistics planning and route optimisation software is one of the many ways in which green logistics is catching up.

Apart from these steps like smart network planning, fleet capacity utilisation, etc. are all inching towards a more sustainable future. As research continues for technology that can help reducing carbon footprint, green logistics is gaining widespread support and acceptance.

Today the logistics industry looks different from how it looked a decade ago. Upcoming technologies and existing ones are going to continue affecting the logistics sector well into the future. One factor that is always going to impact how the future is shaped is how the trends shaping nascent technologies are integrated with existing solutions and infrastructure. Logistics operation, in today's time, has to be able to enable processes like ingesting EDI low tender, while also looking at how future technology can be leveraged for reducing margins.

This will help businesses in creating the Next Generation stack that is able to leverage previous technology investments while also incubating new-age technologies such as Big Data, IoT, omnichannel solutions, etc. For most companies, their future success lies in embracing a combination of new technological innovations and trends in logistics management, that will help them in becoming resilient to any kind of supply chain shocks.

Author: Harsh Vaidya, Founder and CEO, WareIQ