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The logistics industry has been growing fast due to innovations in technology. Several countries have even adopted smart warehouse systems and drone shipment. In addition to improving efficiency, the innovations change business strategies.
As technology becomes more integrated into business processes, the trends of the logistics industry also become more varied. Explore the 10 trendsshaping the future of the logistics industry, summarized from Startus Insights.
IoT connects various physical devices, enabling the real-time tracing and monitoring of goods. This increases supply chain visibility and inventory management efficiency.
For instance, IoT facilitates temperature and humidity monitoring for sensitive cargo to ensure the products’ quality and compliance with regulatory standards during transit.
This means you can have a refrigerator with temperature monitoring ability for fresh food items to ensure their quality.
See also: Top Industries Reliant on Trucking and Shipping Services
An example of a company that develops IoT is a UAE startup company, Fleetroot. The company offers an IoT platform for companies to control and monitor their fleets.
It also offers a solution for fuel management that generates reports on fuel consumption and fuel loss. This platform helps oversee vehicles’ performance and sends vital warnings to the system through its sensors and devices installed on the vehicles.
AI can change the way a company manages logistics as it provides predictions of more accurate demands, route optimization, and better decision-making. For instance, AI predicts when a product will be out of stock and automatically orders for its procurement.
It can also be used to optimize route planning and freight consolidation. This minimizes fuel consumption and carbon emissions and optimizes the overall sustainability initiatives.
A startup company from New Zealand, Insite, has created an AI-based software to predict prices, forecast demands, and optimize workflow and processes for consumer packaged goods (CPG) and retailers.
The use of robots in warehouses and distribution hubs for tasks such as goods retrieval, packaging, and shipment has increased. This improves efficiency, minimizes human errors, and enables 24/7 operation.
A startup company from Ireland, Manna, for example, offers drone shipment for food delivery to restaurants. Its drones can fly at 80 meters high with a speed of 80km/h.
See also: Trucking in Logistics: Types and Roles Explained
Drone shipment can be a solution for traffic congestion. Drones can also reach remote areas, thus reducing the shipment duration and cost.
Drones, robots, and micro-fulfillment centers make last-mile delivery more efficient. This type of delivery is faster and more flexible, especially in urban settings.
Warehouses have become more advanced with the use of robots, automatic warehousing systems, and integrated software. Automation can improve productivity, minimize errors, and facilitate better inventory management.
Blockchain technology provides further transparency and security in supply chain processes. This technology can accurately trace transactions and goods movement, reduce the risk of fraud, and strengthen the trust among everyone involved.
Big data and analytics enable logistics companies to identify trends, optimize their operations, and make better decisions.
By analyzing data from various sources, companies can improve efficiency, reduce costs, and improve customer satisfaction.
This technology enables logistics companies to access and share various data more easily and run complex applications without making big investments in IT infrastructures.
Cloud computing also provides the flexibility level needed by logistics companies in using cloud systems and running complex applications to support their business operation.
See also: Shipping Services: Common Issues and How to Beat Them
Autonomous vehicles, such as driverless trucks, will transform long-haul transportation. These vehicles can operate 24/7, reduce costs, and improve safety.
This trend enables companies to adjust their capacities swiftly to fulfill the fluctuating demands. This is particularly important for today’s highly competitive and dynamic logistics industry.
The ability to adjust logistics capacity to the fluctuating market demands is also a key to future success. What do you need to do about these trends?
Stay updated: Follow the latest developments in logistics technologies.
Invest in technologies: Adopt the relevant technologies for your business.
Focus on data: Use data to make better decisions.
Collaborate with partners: Collaborate with technology companies to develop innovative solutions.
By following the current trends, logistics companies should be able to compete and provide added value for customers.
Digitalization is transforming Indonesia's logistics sector. Despite still quite lagging behind the above global trends, the government has been trying to accelerate digitalization in the logistics sector as a strategic move to strengthen its competitiveness and economic growth.
Through the Indonesia National Single Window (INSW), the country’s logistics sector transforms from a manual system to a digital system. This platform also facilitates efficient export-import processes and logistics management.
See also: Essential Warehouse Functions in Logistics
Additionally, the implementation of the National Logistics Ecosystem (NLE) further brightens the country’s logistics future. Indonesia is projected to be the center for Southeast Asia logistics. This projection improves business opportunities and economic growth.
Logistics sector digitalization is a vital move. With NLE, Indonesia can develop an efficient, transparent, and reliable logistics system. It constitutes a long-term investment that will generate positive impacts on the country’s economy.
One of the professional logistics companies that continues to evolve in the use of digital technology is SELOG, a subsidiary of PT Serasi Autoraya (SERA) and part of the Astra Group.
With over 20 years of experience, SELOG provides comprehensive and end-to-end logistics solutions. They include Trucking, Shipping Services, Freight Forwarding, Warehousing, and Project Cargo.
Driven by the latest digital technologies, SELOG’s services bring greater convenience, effectiveness, and efficiency to your business. Examples of services with such benefits are Astra Fleet Management Solution (AstraFMS) and Warehouse Management System (WMS).
Both technologies allow business actors to monitor their shipping fleets in real time to ensure the fleets’ and drivers' safety. Additionally, they optimize goods receipt, storage, stock management, retrieval, packaging, and shipment.