One of the biggest industries in the world is on the verge of a technological revolution. WIth the expected market size of $12,256 billion with a CAGR of 3.48 percent by 2022, the logistics and supply chain sector is in dire need of an upgrade, courtesy of being eCommerce and digital delivery systems. From on-premise solutions like best accounting system to emerging technologies like Artificial Intelligence, technology has enabled logistics businesses to reach a larger number of audiences and provide a better consumer experience.
Here are the seven must-have technologies; every logistics and supply chain business should adopt in 2020.
Any logistic or supply chain business consists of two components: stationary and mobile. The stationary component consists of tasks taking place at a fixed location, such as inventory management, human resources, dispatching, quality check, and more. The latter component consists of the mobile staff, including fleets and delivery agents.
It is crucial to have seamless collaboration among these two aspects of a business to ensure efficiency and productivity. To overcome this hurdle, logistic companies can use several software solutions, including:
- Admin Panel
- Best Live Chat Software (Chatbots)
- Automobile Fleet Management
- Asset and Inventory Management
- Geolocation tracking
These applications guarantee connectivity and communication among multiple departments of the company, thereby leading to enhanced business performance.
Blockchain, from being a technology behind bitcoin, has emerged out to be an essential fragment of all industries. However, most business owners do not fully understand the application of Blockchain in the logistics industry.
For starters, small-scale logistic operations use a public network run by Ethereum. Also, Blockchain can be utilized to share confidential data without the need for external security. Shippers can now store and communicate information using Blockchain, allowing only those devices within the network to access it. Moreover, logistic companies deal with loads of sensitive data, and Blockchain makes sure it is protected from data theft and breach.
The robotics industry is evolved massively over the past decade. The industry has a market size of
$37,875 million, and expected to reach $70,715 million by 2023 with a massive CAGR of 9.4%. A large share of robotics consumption comes from the logistics industry; companies use drones, robots, and other fully autonomous vehicles. Also, there is a great impact of robotic process automation on supply chain industries. Robotics helps logistics manpower in the following ways:
- Reducing human workload
- Carrying out less productive tasks like loading and unloading
- 100% efficiency, no tiring out
Internet of Things (IoT)
Similar to Blockchain, the Internet of Things (IoT) is a technology that every industry is adopting; however, logistics is one of the industries where IoT can be best utilized, especially in end-to-end processes. It can enable businesses to cope up with tasks like customer service, higher uptime, reliability, supply availability, and customer relationship management. Thus, IoT can play a pivotal role in improving several areas of the supply chain.
Although the logistics industry is seamlessly adopting multiple technologies, there is still a substantial void when it comes to sustainability. For instance, delivery agents fulfilling door-to-door deliveries costs companies fuel and time, whereas, self-driving cars are costly and that developed to handle delivery tasks without any human intervention. In 2020, we can see more developments in technological adoption to increase their sustainability over the long term.
The supply chain and logistics industry are readily embracing Artificial Intelligence and utilizing it to facilitate regular tasks. Here are a few ways to implement AI in the logistics industry.
- Planning the route
- Development of transportation IoT devices
- Development of door-to-door delivery robots
- Design applications like predictive optimization software
Several companies, instead of using AI as a whole, use Augmented Intelligence (alternative conceptualization of artificial intelligence) that enhances the efficiency of human labor, thus providing better results than AI alone.
Real-time Supply Chain Visibility
Logistics businesses need to utilize supply chain visibility to access real-time data. Consumers have grown smarter as they readily demand supply chain data. Thus, companies need to develop systems that offer accurate shipment tracking and ETA information.
The logistics and supply chain management industries are rapidly evolving, and companies that are resistant to this revolution will soon be out of business.