The integration of emerging technologies will enable the logistics sector to streamline its supply chain operations, at the same time introducing transparency and visibility.
FREMONT, CA: The logistics sector is undergoing a rapid transformation with the advent of new technologies, augmenting its capabilities with robust integrations. The global logistics market is expected to touch the $1374 billion mark by the year 2023. For decades, the logistics industry has relied on antiquated manual processes for managing inventories, coordinating transport, handling materials, and functioning of warehouses.
The extensive coordination requirements between various stakeholders have led to a communication gap, which has dramatically affected delivery. The rapid advancements in technology, including AI, biometrics, automation, GPS, and blockchain, have introduced speed and agility into the supply chain operations.
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The digitalization of the supply chain operations will enable organizations, as well as customers, track the shipments in real-time, thus reducing inefficiencies and streamlining operations. Migrating from the paper-based approach to the digital platform will eliminate human errors. Several organizations are considering the integration of robotic process automation (RPA) to automate the logistics process. Also, the digital accumulation of data will facilitate better analytics, driving better actions to enhance customer demands, identify optimum routes, and reduce fuel consumption.
The electrification of the logistics transport will not only reduce fuel costs but will also contribute to the preservation of the environment. The electric market is one the rise and is expected to reach $570 billion by the year 2025. Electric vehicles (EVs) are energy-efficient, cost-effective, and require less maintenance when compared to their IC engine counterparts. The establishment of charging stations across the country will empower long-distance shipments using EVs.
Blockchain and IoT
Organizations can boost visibility in their logistics operations with the incorporation blockchain technology and the internet of things (IoT). It will bring accountability and transparency into the blockchain process. Blockchain integration can augment security, reduce fraud, streamline transactions, and enhance accuracy across the entire supply chain lifecycle. IoT can facilitate a connected ecosystem, promoting enhanced visibility, warehouse management, and fleet management. The connected devices will aid organizations in tracking routes, maintaining schedules, monitoring vehicle usage, and reducing downtime.
The advanced computer vision algorithms will enable organizations to leverage data and augment their systems with human-like decision-making capabilities. Computer vision-enabled systems can be used to deal with cargo damage efficiently. By leveraging labeled data, the systems will be able to determine the feasible limits of damage. It will eliminate the need for multiple approvals, thus streamlining the delivery process.