The logistics and warehousing industry is under dreadful pressure to deliver better services at a lower cost. The technological revolution meets these challenge by exploiting robotics, the blockchain, Internet of Things (IoT), big data, Artificial Intelligence (AI). These innovations are used in everything from warehousing, material handling to delivery of goods.
The excellence in logistics involves working collaboratively with others to optimize the flow of physical goods and information and financial transactions. But the fragmented and competitive nature of the industry creates low transparency, unstandardized process, data silos and diverse levels of technology adoption. And many areas of the logistic value chain are bound to a manual process, for instance relying on manual data entry and paper-based documentation to adhere to the customs process. This makes it difficult to track the movements of goods and the status of shipments as they travel along the supply chain.
Blockchain has the potential to help overcome these frictions. This technology can enable data transparency and access among relevant supply chain stakeholders. The security mechanism of blockchain technology enhances the trust between stakeholders to share information. Furthermore, it can achieve cost savings by providing automated and foolproof processes. It can also add the physical flow of goods by adding predictability and visibility to logistics. Additionally, blockchain -based solutions fuel potential for new logistics services and more innovative business models.
AI has a growing presence in increasing the efficiency of logistic supply chains. The numerous opportunities for AI in logistics include its presence in back-office operations like accounting, finance, human resource and many more. The combination of AI and robotic process automation, cognitive automation replaces the clerical labor using software robots which can be integrated into existing business systems. Ai technologies like natural language processing can extract key information such as billing amounts, account information, dates, and many others. Ai can significantly advance the performance in integration with predictive network management. IoT also is helping warehouses in terms of security, safety, optimization, and improved delivery.
As the consumer demands are on high, understanding and reaping the benefits technologies will be a crucial factor for the success in the logistics and warehousing industry.