The logistics industry is one of the fastest-growing industries in the world. It is an important element of supply chain management. As the population of people with higher per capita increases the demand for luxury goods increases accordingly. We have also seen a spike in e-commerce and international trade, especially after the opening of economies worldwide. International trade is growing, giving rise to numerous industries. Because of the increase in the demand for products and services, mammoth supply chains have been implemented that work tirelessly to meet the demand of the market. Thus, there is a rise in the logistics booking, leading to an increase in the volume of transportation and money involved.
The logistics industry is worth $ 4.92 Trillion in the year 2020–21 and is expected to cross the $ 6.55 Trillion mark by the year 2026–27. Talking about India alone, Statistic has reported that India’s logistics industry is worth $ 250 Billion in 2020–21 and is predicted to reach $ 380 billion by the year 2024–25.
As the logistics services worldwide are increasing at a tremendous rate, there is an increase in the intricacies of operations involved in it. It is also becoming extremely difficult to handle such a large amount of cargo and efficiently manage cargo shipping booking, freight tracking, deliveries, storage, manpower and documentation. That’s why there is a need for technological assistance to carry out the logistics operation efficiently and smoothly. Newer technologies are incorporated every day to make logistics industries self-sustaining with minimum wastage of materials and resources and to increase productivity.
Let us see a few trends in the transportation and logistics industries.
- Artificial Intelligence:
Artificial intelligence has changed the way business was done traditionally. It has become more data-based instead of intuitive and is giving exceptional results. It integrates various processes like planning and forecasting of inventory, deliveries, transportation etc. AI will also take care of administrative tasks, warehouse automation, manpower management along with sales and marketing. AI will limit human interference to a great extent and eliminate human error and increase the productivity and efficiency of all processes. It will also enhance customer relations by providing timely solutions to all their queries. - Robotics:
Robotics was used in the logistics industry for small tasks or repetitive work. However, with advancements in robotics and the infusion of AI, it has now become more efficient and can handle the entire process with minimum or no human assistance. Nowadays robotics handle warehouses. It helps in the sorting of items, stacking them, retrieving them when required and even packing them before dispatch. - Software:
Sophisticated software like terminal operating systems, port logistics software system solutions, System Logistics, freight forwarding erp software solution etc. is used to manage the digital logistics operations like inventory management, warehouse management, order processing, human resource management, billing, accounting, documentation and predicting future demand and planning activities accordingly. This software gives real-time about the status of the different systems and gives one-point control of the operator. - Driver-less Trucks:
Recruitment of skilled drivers and retaining them is a huge ask for the logistics industry. Moreover, managing the shifts, the salaries and dependency on them make transportation more challenging. There are always chances of accidents and delay that cause wastage of money and time and loss of human lives. To overcome these challenges the logistics will rely on driver-less trucks that will be run with the help of GPS, satellite coordination and sensors. These trucks will be more time and fuel efficient. The chances of accidents are minimum and the labour cost will decrease drastically. It won’t be a surprise if you see driver-less trucks in the near future. - Drone Delivery:
Last-mile delivery is an important part of the logistics industry. Attempts are made to use drone technology for this purpose. Drones can deliver parcels to your home quickly and accurately with less fuel consumption. The drone is the technology of tomorrow and will be a boon for the e-commerce and logistics industry.
