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What Does the Future Look Like for the Logistics Industry?

Logistics Tech Outlook | Friday, June 17, 2022

Logistics in America is moving ahead with the continuous technological developments in the sector.

Fremont, CA: Despite robust initial Covid recoveries, there are already concerns about the Latin American economy losing steam. There has been a tremendous increase in logistical infrastructure during the previous two years. However, it was insufficient to bridge the decades-old gaps that have plagued the sector and impeded its progress.

The current challenges in logistics

In Latin America, the technology to efficiently connect drivers, warehouses, and customs did not exist until recently. On the one hand, players struggle to integrate operations and communicate and exchange data across firms.

In contrast, enterprises in Latin America generally handle their supply chain with more than 15 separate parties. In addition, each freight booking involves over seventy emails. This is a substantial amount of time and money spent on administrative activities alone.

Elsewhere, drivers lack the resources to confirm the quality and destination of the items, determine the most efficient routes, and communicate their estimated arrival times. And because many drivers operate autonomously and are not subject to inspections, cargo owners will occasionally pressure them to transport more products than specified in order to reduce costs.

The Government's Journey into the future of logistics

The region is experiencing a boom in startup funding, and rising entrepreneurs are gaining more exposure and access to resources, but founders still require government support to create and promote technology on a large scale. The United States, for example, has just launched the Freight Logistics Optimization Works (FLOW), which aims to increase information sharing between logistics parties and alleviate supply chain congestion caused by the pandemic.

The association, which has 18 members from warehouses, ports, and private businesses, might provide a framework for improving logistics throughout Latin America. With a greater understanding of the landscape, its moving elements, and concerns, parties may develop more efficient, targeted technology for collaboration.

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