Digital Trends That Transform the Logistics Industry
To improve transparency and efficiencies, the logistics industry is embracing many new technologies. Forbes Insights released a report called the Logistics, Supply Chain and Transportation 2023 which indicates that nearly two-thirds of logistics experts believe that they will see significant productivity gains with new technology. To enable greater visibility, they’re looking at IoT and telematics that are allied to blockchain. Furthermore, 53% of the respondents indicated that they expect the customer experience will be enhanced with technology such as machine learning artificial intelligence.
Here are five technologies that will have the greatest impact on transportation and logistics in the coming years.
1. Machine Learning and Artificial Intelligence
Machine learning and artificial intelligence are going to play a large impact on logistics. There are plenty of unstructured data and structured data in the supply chain, and this can be analyzed as well as harnessed. By generating insight and identifying patterns into every link of a supply chain, logistics companies will be able to transform their operations in a dramatic way.
The market for artificial intelligence in logistics is going to grow by the year 2023 at a CAGR (compound annual growth rate) of 43% according to Infoholic Research. This will give artificial intelligence a market value of around $6.5 billion.
2. Track and Trace in IoT
Assets can be tracked between manufacturing facility and the vendors, while materials and deliveries can be tracked through manufacturing facility. A company can analyze the data that has been created by tracking and tracing these assets, which can be used to predict consumer preferences identify patterns and then look for any potential breakdowns that might occur in the supply chain. This provides better customer service, reduced costs, and Better delivery visibility for the customers.
By using IoT tracing and tracking tools, a company can be more profitable. In the trucking industry, for example, Frost & Sullivan indicates that a company can improve their traceability and control of freight which leads to better profits at around 10 to 15% annually.
Transfer receipt for customers could be improved by blockchain. This will allow customers to see the whole journey that the product is taking before it arrives at their doorstep. It can make audits more transparent and improve security because frauds can be tracked at greater ease and at a faster rate.
Supply chain companies can be helped by blockchain as it creates smart contracts and greater trust, as well as make any digital payments safer. Blockchain is estimated to grow by 11 billion by 2022 at a CAGR of 73% according to IDC.
4. Platooning and Autonomous Vehicles
In many ports, airports, modern warehouses, and other supply chain locations, autonomous forklifts are already common to see. Soon, there will be a ton of autonomous trucks on the roads, delivering goods that are going to be unloaded by autonomous forklifts, and then put in warehouses by robotic arms and automated conveyor belts.
5. The Landscape for Outsourcing
3PL or third-party logistics is quite healthy currently while companies still looking for cost controls to help reduce their overhead and gain benefit from working with the expertise of external suppliers. Two key trends have emerged in the 3PL sector according to the 2018 22nd Annual 3PL study. 3PL providers and shippers have closer relationships now as digital technologies playing a larger role with blockchain and more automation.