With technology innovations being an integral part of almost every industries' growth today, logistics and supply chain is undoubtedly one of the most impacted sectors. With massive technological advancements in the recent years, following 8 are playing a huge role in reshaping the entire logistics space:
- Physical Internet (based on Internet-of-Things (IoT)
The IoT has had one of the most revolutionary impacts on the operations of the logistics industry in improving supply chain transparency, safety and efficiency. It is a network of objects equipped with radio frequency identification chips and similar innovations that enable the objects to communicate and interact with each other. Some of its major applications are -
- Real-time Tracking
- Predictive Asset Maintenance
- Real-time Fleet Management
- Warehouse Management
- Route Optimisation
- IT Standards
Major improvements in IT standards are enabling collaborations horizontally and are bringing about more transparency and efficiency. It also helps in resolving one of industry's major challenges, i.e. integration of all its sectors involving warehousing, material handling, service providing, etc.
- Data Analytics
Valuable insights obtained through data analysis is enabling the logistics industry to optimise operations, streamline factory functions and make the entire supply chain as transparent as it can get. By leveraging data, companies can easily predict slow and busy periods and hence the potential future demand and supply.
Cloud solutions connect multiple parties throughout the supply chain which helps in providing real-time visibility into logistics data and processes. It also enables the adoption of new platform-based business models.
- Block chain
Blockchain is providing an error-free means to record transactions, create a transparent system, track assets and online documentation for everyone to access data from anywhere they want. Reduction of fraud and bottlenecks are other major benefits.
- Robotics and Automation
Robotics and Automation is highly improving the safety for workers by taking up dangerous jobs. Increased delivery speed at a lower cost and reduction in human error contributes to providing a better customer experience as well.
Use of drones is radically transforming today's logistics space by saving the cost and time required to conduct real-time stock checks and product deliveries. It also automates the movement of inventory when used together with AI.
- Autonomous vehicles
They help in reducing operational cost which includes driver and related expenses. With reduction in human workforce, potential human errors also go for a toss leading to efficient delivery processes.