The logistics industry has been moving through a sea of change, driven by new technologies. With the ever-complexifying nature of global supply chains, logistics companies have no choice but to adapt to new technologies if they want to be in the game. This blog takes a closer look at the most influential trends in the future of logistics and examines just how these technologies have the potential to transform the industry.
Artificial intelligence and machine learning drive innovation in logistics. AI means a lot of technologies put together to do things that humans can do—and often much better. The uses of AI in logistics range from route planning to inventory management and demand forecasting, among many others.
Machine learning is a subset of AI that deals with algorithms improved over time by contact with data. Machine learning models analyse historical data to predict future outcomes, identify patterns, and make decisions without human intervention.
The IoT is a network of interconnected devices that gather and share data. In logistics, it applies to providing real-time tracking and monitoring of goods. Place-bound sensors and RFID tags are in-built across shipping containers, pallets, and vehicles, which transmit information on location, condition, and status regarding goods.
IoT technology enables logistics companies to trace shipments in real-time, monitor temperature-sensitive cargo, and ensure the integrity of supply chains. For example, IoT sensors alert managers of an impending delay or deviation from the planned route to take appropriate action.
Better known for its first use case in cryptocurrencies, blockchain technology is playing a huge role in logistics today by offering secure, transparent, and immutable records. In logistics, blockchain creates a decentralised ledger that keeps a record of every transaction made in the supply chain.
The technology enhances transparency through one, immutable record for all transactions and, hence, enhances traceability from origin to destination. Blockchain also reduces the possibility of fraud and errors with its no-intermediary approach and real-time verification of transactions.
Autonomous vehicles and drones will transform last-mile delivery completely. As far as human intervention is concerned, autonomous vehicles—self-driving trucks included—can run continuously, eliminating the need for drivers to rest, thus shortening delivery times while at the same time slashing operational costs. These vehicles sense their surroundings with advanced sensors, cameras, and AI algorithms that ensure safe passage on roadways.
Drones are a new means of package delivery, especially to remote or hard-to-reach places. They can deliver through air trafficking without congestion and provide speedier deliveries, especially in the heart of cities, where traditional delivery methods can be really slow.
Big Data defines analyses done on huge volumes of data to extract patterns, trends, and insights. Predictive analytics is part of big data that enables one to foretell or predict future outcomes based on some statistical algorithms and machine learning techniques applied to historical data. In logistics, big data and predictive analytics are instrumental because they help companies enhance demand forecasting, optimise inventory levels, and smooth supply chain operations.
Logistics is evolving over time, and organisations embracing such technological trends are better off succeeding in the midst of such competitive scenery. From AI to autonomous vehicles, these innovations are huge in terms of cost reduction and efficiency improvement.
At Hexalog, we keep ourselves abreast of all these trends so our customers remain at the very forefront of innovation in logistics technology.