Technological Innovations that are Transforming the Logistics Industry
Technological Innovations have changed the way business is being done in almost all sectors of the world. In the case of freight and logistics, they are undoubtedly transforming the industry. We've seen technologies like cloud computing, big data, artificial intelligence, machine learning, mobile technologies, and social media gaining prevalence over the past few years.
Transforming the Freight and Logistics Industry
The game-changer these technologies deliver for this industry has been tremendous. These digital transformations are fast becoming a business enabler for many companies working in this sector from operational to strategic perspectives.
This article explores some of these game-changer technologies and how they will impact the freight and logistics industry in 2022.
By 2025, the global blockchain in the transportation and logistics industry is expected to be worth over $765.5 million. The advantages of blockchain technology for logistics companies are clear: blockchain helps solve problems like fraud and human error, reduces costs and increases efficiency. One primary way to achieve this is through smart contracts.
Transactions in logistics are carried out based on multiple documents like bills of lading, consignment notes, warehouse warrants, insurance certificates, etc. For example, clearing goods through the authorities involves numerous steps and approvals from various bodies like port authorities, customs agents, or other government organizations.
Blockchain-based smart contracts can help streamline these processes by providing a single source of truth for all parties involved in the transaction. These contracts remove manual processing because they automatically execute themselves when certain conditions are met.
A blockchain solution enables multiple organizations to work together while reducing costs by eliminating duplication of data entry and the need for multiple reconciliations between parties.
The IoT offers logistics providers plenty of opportunities for improving efficiency, cutting costs, and reducing risk. The logistics industry is increasingly turning to IoT devices and the data they collect to gain greater visibility into warehouses, distribution centers, and in-transit assets.
For example, IoT sensors can track location, temperature, humidity, and other environmental factors to help ensure that goods are stored under the right conditions.
IoT in logistics enables remote asset monitoring where it is possible to track and monitor assets on the move. This ultimately reduces maintenance costs due to early detection of inefficiencies or faults to enable preventive action, reduced insurance premiums, and more efficient route optimization based on real-time data. Companies involved in cheap car shipping services or other heavy goods can lower their costs because of the adoption of IoT technology.
Because of the ability to print on demand, companies can now offer a broader range of customized products than ever before. Logistics companies such as DHL hail 3D printing as the future of supply chains. And with an optimized supply chain, logistics receives a boost.
The automotive industry is already making good use of 3D printing by delivering customized vehicle parts to their customers. With this technology, manufacturing can be completely tailored to customer demand, leading to better customer service and reduced warehouse inventory. This ultimately allows the company to save on production costs.
In addition, point-of-sale production is an excellent way by which 3D printing can revolutionize the logistics industry, as opposed to being produced in bulk at centralized locations and shipped out to distribution centers and retail stores. It enhances supply chain management because distribution times are shorter.
The logistics industry relies heavily on supply chain management, so many companies are turning to cloud solutions to automate planning, organizing, and tracking shipments. This frees up staff members to handle other tasks while improving efficiency.
Cloud computing has become increasingly popular in the logistics industry, as it can help businesses reduce their operating costs, increase efficiency, and improve back-office operations.
The logistics industry is the perfect place for cloud systems to thrive because it involves information from several sources, such as carriers, ports, airports, and customers. Cloud computing models also provide greater flexibility for companies to scale capacity up or down depending on the demand for their products, service, or information.
The vast amount of data available today has a significant impact on the company's success, but it is only by using this data that its value can be fully exploited. In the logistics industry, the advent of IoT has increased the number of channels for data collection, which, when analyzed, can enable these companies to understand their operations better.
The continual extension of supply lines over the years also presents more opportunities for stakeholders to collect and act upon valuable data. Weather conditions, seasonal trends, traffic patterns, fleet schedules, supply movement, etc.: these are excellent sources for collecting valuable data. Analytics software comes in handy here, helping logistics industries make better decisions based on quantifiable metrics.
Due to rapid advancements in transportation technology, freight and logistics have been experiencing a revolution of sorts. Looking back at the past decade, we can see just how much technology has evolved both in the freight and logistics industry and with ordinary consumers.