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The logistics sector's most promising technologies revolve around location, connectivity, Big Data, cognitive computing, and security.
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FREMONT, CA: According to a recent Forbes Insights poll, 65 percent of logistics, supply chain, and transportation executives recognize the need to redesign existing models and increase operational flexibility to assure omnichannel delivery, minimize costs, and meet changing customer demand.
Indeed, 72 percent of businesses responsible for planning, executing, and monitoring the flow of products from the point of origin to the point of consumption saw improved customer experience as the primary advantage of business transformation. The digitalization of logistics workflows is the key to increasing operational efficiency and customer satisfaction.
The following are some new technologies in logistics, along with their potential impact:
THE INTERNET OF THINGS: Within the next five years, the Internet of Things (IoT), which is sometimes referred to as "telematics" in the transportation industry, could have a direct economic impact of $1.9 trillion on logistics and supply chain.
IoT operates on three levels: linked hardware, infrastructure that enables data transmission and processing, and software. It blurs the digital and physical worlds divide by allowing nearly any object, such as a delivery vehicle, picking cart, or inventory item, to become trackable.
With IoT solutions, manufacturing, retail, and transportation businesses can track the whereabouts of their items in real-time and guarantee they arrive at the correct time and location in good shape. Additionally, organizations can use IoT systems to forecast demand based on past data and manage inventory replenishment.
Apart from RFID and barcode-based asset tracking, Internet of Things technologies have been applied to logistics in the one of the following ways:
Connected and self-driving delivery vans: While on-board GPS trackers, driver fatigue detection technology, and fuel level sensors have become commonplace in modern logistics, advances in electronic engineering and computer vision are expected to result in the development of unmanned delivery solutions such as drones and driverless trucks aimed at automating short-haul delivery services and facilitating same-day delivery to remote areas.
BLOCKCHAIN: The distributed ledger technology's applications in logistics are largely focused on smart contracts—self-executing digital contracts that enable companies involved in goods distribution to automate the purchasing process, eliminate bureaucracy and commercial process inefficiencies caused by human error, secure payment transactions, and increase supply chain transparency.
Additionally, a blockchain-based logistics system can keep electronic records on commodities' origin, transportation conditions, and expiration date. With a unique identifier for each item, the cutting-edge technology enables the tracking of products from the manufacturing facility to the end-user, which can be used to combat counterfeit pharmaceutical goods, which account for 30 percent of all medications sold in emerging markets, and to ensure cold chain quality for temperature-sensitive products.
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