Potential of Automation in Transportation and Logistics Industry

By Logistics Tech Outlook | Tuesday, October 13, 2020

 Automation in Transportation and Logistics IndustryWith never-ending possibilities in AI, Machine Learning (ML), robotics, and IoT, enterprises are looking at automation to rationalize logistics on a comprehensive scale.

FREMONT, CA: Like most other industries, the transportation and logistics industry is poised to develop exponentially with the progressions in technologies. As the newest technologies are redefining conventional business models, they need to adapt themselves to stay ahead of the competition. According to a report, lots of operations will be automated by 2030, as Artificial Intelligence (AI) takes over the many recurring activities that logistics companies carry out. With never-ending possibilities in AI, Machine Learning (ML), robotics, and IoT, enterprises are looking at automation to rationalize logistics on a comprehensive scale.

Factors Influencing Adoption of Automation

• High Per Capita Cost of Manual Labor

Businesses may find it difficult to find experienced labor, or they cannot meet the per capita cost for maintaining a large manual labor force. Because of fierce market competition, enterprises ought to keep their expenses to the minimum to win the race. Besides, it is not an ideal solution to hire more workers to meet fluctuating demand and supply. To address this condition, firms can leverage automation as the paramount choice.

• Technical Developments

Technological developments in IoT, AI, and machine learning are redefining the entire network, and transportation and logistics are not left out. From planning until execution, AI will play an essential role like order prediction, automated transport, optimizing warehouse locations in line with requirements. Still, lack of clarity on which technology will surface as the frontrunner may create some amount of perplexity among the organizations to channelize and prioritize their investment in the technologies.

How Automation is Molding the Future of the Logistics Industry

• Automated Warehouse

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Warehouse automation is one of the first areas businesses try to attend when it comes to investing in automation. On a larger scale, it sums up the automation of existing processes to advance competence, consistency, improve accuracy, and leads to enhanced ROI. Bringing inventory to the order picker to reduce the movements inside the warehouse, automated carrying vehicles, Automated Storage and Retrieval Systems (AS/RS), automatic conveyors, and more are some areas where automation can perform an important role in a warehouse.

• On-Demand Automated trucks

Consumers have shifted from owning a product to gain its benefits— the sharing economy. Transportation and logistics business is also witnessing the same shared economy model in the form of on-demand automated trucks. On-demand self-directed trucking progresses the effectiveness of freight movement and decreases the increased cost of hiring and training drivers. The autonomous vehicle would work round the clock with double the work done by non-automated vehicles. Additionally, on-demand trucks eliminate the burden of huge initial capital investments from the firms, reduce transportation costs, and eventually elevate customers with competitive prices.

• Real-Time Tracking

Consignment delivery has always been a significant concern for businesses as timely delivery of supplies is directly proportional to customer experience. Real-time monitoring facilitates logistics providers to deal with demurrage and detention problems and take counteractive measures like updating the customers about any possible delays due to bad weather or traffic, resulting in reduced failed delivery occurrences and enhanced customer satisfaction.

• Automated Analytics Systems

Today, it is required for transportation and logistics companies to leverage the power of data analytics to stay ahead of the contest. Those organizations that rely on conventional or obsolete IT systems cannot drive insights from available information and therefore fail to understand and meet market dynamics and customer preferences. Most companies carry a vast amount of data that is not explored for generating insights such as demand generation analysis, customer churn prediction, and supply shortage prediction. Automating the entire system assists businesses in creating actionable insights regularly, and salespersons can act accordingly. Sales figures can immediately be produced back to the system from sales POS, and the system can produce improved insights to best suit the existing situation.

See also:Top Automotive Tech Companies

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