From autonomous driving and last mile deliveries with the use of drones, to AI chatbots that address basic user requirements and IoT devices that improve traceability and tracking, the logistics industry is the perfect ecosystem for disruptive technology applications.
Technology applied to logistics has provided sophistication to this booming sector in all its processes: planning and management, storage, transfer and handling, merchandise management, route optimization, customer service and even marketing.
In this issue we summarize the 7 technologies applied to the logistics industry that are revolutionizing the sector and what we can expect in the near future.
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1.- Cloud computing
Cloud computing or cloud computing is one of those disruptive changes that has gone somewhat unnoticed by the eye of most users.
But it is cloud computing that has enabled companies, including those in the logistics sector, to dispense with large and expensive facilities for the storage of their data and systems; as well as their management and updating costs; costly licenses and on-site installations.
Analytics Insight refers to how SaaS or Software as a Service cloud computing services have provided the industry with an unparalleled level of integration and simplicity, where all they need to monitor their operations is a device and an internet connection, all records are viewed through a single, easy-to-manage interface.
In addition, cloud computing has endowed the logistics industry with data security, as information is not stored in a single location, protecting against loss or unauthorized use of sensitive information.
2.- Big data and data analytics
From traffic data, weather and road conditions to fleet data, delivery times and dispatches, logistics managers combine the most real-time data and analytics tools based on artificial intelligence (AI) and machine learning (ML) to optimize their operations.
RTS Laps refers to how in many of the use cases, logistics companies use big data analytics systems with GPS devices and other tracking tools to monitor the movement of goods in real time.
All information is translated into indicators, reports anddashboards to maintain timely control and take preventive or corrective actions when necessary.
Big data and analytics also support logistics companies in analyzing their customers' purchasing and consumption patterns to personalize their experience according to their preferences and propose loyalty strategies.
In summary, big data and analytics in the logistics industry translates into:
- Route optimization
- Preventive and predictive fleet maintenance
- Delivery optimization
- Improved customer experience
- Transparency
- Reduced costs
- Proactive decisions.
Artificial intelligence (AI) and machine learning (Machine Learning)
As we have already anticipated in the previous sections, AI and ML applications play a transformative role in the logistics and transportation industry.
IA is used for:
- Optimize fleet performance
- Last mile dispatch analysis and optimization
- Automate parcel distribution in warehouses
- Capacity and demand forecasting.
The Multiple AI portal reviews how ML-driven forecasting methods significantly reduce margins of error compared to more traditional methods such as regression and averaging.
Thanks to this, distributors, carriers and other members of the supply chain and multimodal logistics can:
- Optimize the capacity of your warehouses, cargo vehicles and dispatch vehicles
- Better plan labor requirements
- Reduce warehouse inventory costs
- Estimate timely delivery times
- Improve shipment strategy
- Avoid stock-outs.
4.- Internet of Things (IoT)
Another major technology applied to logistics is the Internet of Things or IoT.
Throughout all facilities and links in the logistics chain, IoT devices and sensors provide full transparency and real-time traceability of any product in transit.
DispatchTrack emphasizes how the IoT fosters connectivity between assets, facilities and transportation units to provide data transparency and assist in management remotely in addition to providing real-time details to various stakeholders.
IoT in conjunction with AI and Big Data enable asset management, risk prediction, optimal load management, time forecasts, scenarios and alternative strategies for any unforeseen event.
Today IoT applications are running in conjunction with Blockchain technology to provide unprecedented end-to-end packet visibility.
In fact, a 2019 Deloitte report reveals how since that year the global market for sensors and IoT devices for enterprise logistics applications grew by 60% and forecast a size of US $60 billion by the close of 2022.
Blockchain (Blockchain)
Blockchain and Internet 3.0 have all the potential to revolutionize logistics chains.
Its principle of operation under distributed registries provides the infrastructure for seamless, direct and integrated communication, as argued by PwC, which endows any network, registry and transaction with transparency, simplicity and security.
AWS alludes how blockchain can be leveraged to create applications where parties can access a peer-to-peer network, without owners or intermediaries to validate any trace from a distributed, immutable larger record for complete data visibility.
Automation and robotics
This is where technology applied to logistics has gained greater visibility and a sign of this is the degree of robotization and automation present in Amazon's distribution centers via Amazon Robotics.
By the end of 2020, the marketplace giant is said to have more than 200,000 robots working in its logistics centers and facilities around the world.
But beyond Amazon, the warehouse robotization and logistics HUB market was valued in 2021 at just over US $ 5 billion according to Markets & Markets and is expected to grow at a compound annual rate of no less than 14% between 2022 and 2026.
Another special mention goes to delivery drones, like something out of a Sci-Fi movie, these devices can be programmed for last-mile dispatches where conditions make safe ground transfer difficult.
One example is the use of drones to expedite the dispensing of vaccines and other biological or highly perishable drugs with a short shelf life, thus cutting the need for storage facilities or stalls.
In terms of autonomous driving Google, Tesla and even BMW are investing heavily in the concept and there are already some road tests that rely on the presence of a driver in case of emergency.
It will be a matter of a few years before we see autonomous units connecting logistics points in the world's leading economies. Boston Consulting Group projects that at least 10% of fleet units will be driven autonomously or remotely by 2030.
7.- Virtual reality (VR) and augmented reality (AR)
Initially conceived as technologies for entertainment or recreation , virtual reality and augmented reality have also found interesting applications in logistics, transportation and related sectors such as eCommerce and retail. eCommerce and retail.
Today, for example, augmented reality helmets and glasses are available to warehouse and forklift operators to quickly recognize a load or detect unsafe conditions and acts in logistics facilities.
These same AR devices, helmets and smart glasses, are used by last mile workers to record in microseconds any dispatch or package movement, and as mentioned before locate a specific package within a unit load or warehouse.
In the coming years it will be VR orographic devices that will guide delivery personnel on the best routes for their deliveries, weather and road traffic conditions in real time.
According to Globaltranz in the immediate years ahead, AR-guided order picking will help transportation and logistics companies dispense with labor-intensive training and endow their operations with agility, efficiency, transparency and professionalism.
Technology applied to logistics - Conclusions
The same technology that today excites the masses and raises the expectations of an increasingly demanding digital customer is the technology that forges new opportunities for companies to improve their processes and logistics chains.
From manufacturing, to delivery in our hands, technology will continue to transform the processes and operations of the logistics industry framed by disruptive platforms such as cloud computing, automation, the 4.0 revolution and digital transformation; small businesses cannot be left behind when it comes to adopting or implementing these technologies.
At ABC Logistics we integrate and implement most of these technologies in our logistics processes and systems with the sole purpose of offering quality service and adding value.
How much of this disruptive technology is being applied in your warehouse?
