THANK YOU FOR SUBSCRIBING
New technological introductions are paving the way for new shifts in the freight and logistics industry to accelerate the movement of goods, thereby managing effective supply chains.
FREMONT, CA: With the introduction of new technologies, the logistics industry is evolving and paving the way for the future of businesses. It has become a significant sector that contributes to the global economy. As technological innovation is growing rapidly, new shifts are anticipated to be observed in the near future.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Green Logistics and Sustainability
Findings observe that transportation activities such as aviation, rail, shipping, and heavy and light trucking are responsible for 17 per cent of global greenhouse gas emissions, and 85 per cent of the delivery mileage from freight delivery is primarily responsible for emissions. Therefore, significant action in the transportation and logistics industry is inevitable. Freight and logistics firms are adopting autonomous delivery vehicles, drones, and electric vehicles to curb the issue. Moreover, innovations such as automated operations through software, solar-powered vehicles, eco-friendly packaging, and other sustainable techniques are on their way to entering the freight and logistics businesses.
Localization of Supply Chains for Optimized Reverse Logistics
The global reverse logistics market is expected to show massive growth in the coming years. With the increased demand for fast and free shipping and return orders in e-commerce, the logistics industry is tackling the issue of managing the increasing costs of reverse logistics and optimising it according to the supply chain. To achieve this goal, logistics companies must invest in last-mile delivery solutions for direct-to-consumer models. Additionally, there is a transition towards localization of the supply chains for fast order fulfilment. With the increased speed and efficiency in the last-mile distribution, the shift is expected to expand in 2022 with more 3PL integrations.
Blockchain Technology Integration in Logistics and Supply Chain
Blockchain technology is gaining wide recognition in businesses globally. Integration of blockchain into companies is resulting in more efficacious workflows, although supply chain management is the key killer application. This technology is complex and has diverse stakeholders, many third-party intermediaries, and a massive amount of data to store, manage, and monitor.
Additionally, blockchain helps to automate processes at scale by offering access to relevant information across all levels of the supply chain network, accelerating the flow of goods and providing accurate tracking. Moreover, it enables data transparency, traceability, visibility, and predictability in the logistics arena. With these tremendous benefits, more supply chain stakeholders are embracing this technology in their firms, resulting in blockchain integration as a significant industry practice.
Adoption of Artificial Intelligence (AI) & Automation
According to numerous studies, 79 per cent of supply chain professionals anticipate artificial intelligence to become a crucial competence in their organisation in the coming years. The logistics industry can benefit greatly from AI due to its ability to quickly catch up with the supply chain.
AI is transforming businesses by introducing automated warehouses, smart roads, predictive analytics, and enhancing freight management. Combining AI and warehouse automation enable companies to minimise possibilities for error, enhance efficiency, and augment productivity by reducing overhead costs. It can also effectively manage the supply chains by automating services through AI, which requires several intermediaries such as brokerage, insurance, and documentation.
Therefore, logistics companies are adopting these technologies to enable new business models and to strengthen meaningful analytics for administrative and operational efficiency.
More in News