In comparison to other industries, logistics has been slower to embrace the digital revolution. However, with the worldwide pandemic, more ecommerce, and decreased offline shopping, conventional supply chain and logistic activities have to shift. Companies are grappling with rising prices, having difficulty scaling their processes, being unable to forecast demand, and relying largely on physical labor. And now is an excellent time for creativity.
The biggest disruptor in the logistics business is digital transformation, which will account for $1.72 trillion in logistics investments by 2025. For the sector to survive and develop, innovation is required.
While logistics has become an essential part of the global economic system, the supply chain has grown tremendously. And thus, technology can play its role by streamlining your logistics business success in the long run.
So, here is how to grow the logistics business with technology.
As an answer to increasing sales in the logistics business, while logistics has become an essential part of the global economic system, the global supply chain is growing tremendously, and advancements in technology can help streamline and grow business in the longer run.
Logistics can be described as the right product or service at the right place, time, and suitable condition. Efficient logistics is an essential aspect of the growth of the economy globally.
As an answer to improving logistics management, In the USA, the logistics of items generally involves the amalgamation of information flow, material handling, packaging, inventory, transportation, warehousing, systemization, and security. Logistics services are taught at all levels in the planning and execution of the movement of goods. These may include through the air, express delivery services (EDS), or trucking.
As an answer to how to do logistics planning, Because of a high level of competition, the companies have initiated to shift to meet the demands of the internet age; logisticians and executives need to understand how these seven technologies are crucial for the transformation of the industry.
Automation in logistics is the use of software to increase operational efficiency. Automation offers a variety of solutions for the logistics industry, from advancing package labeling to automated storage at an assigned location to automatic retrieval of orders to automated dispatch processing.
Therefore, Logistics Automation drastically reduces the human workforce needed to run operations like packaging, labeling, or storage of products in the warehouses.
Holland's Port of Rotterdam, often called "the most advanced port globally," is a leader adopting this technology. The port's fully-automated container terminals use computer-programmed stacking cranes to unload cargo to increase production, improve handling performance, and reduce labor costs.
The Wall Street Journal estimates that automation allows the Dutch port to increase overall productivity by 30 percent.
Robotics are automated machines that increase efficiency and grow the logistics business. Robots, unlike automated machinery, are designed to perform multiple jobs at once, making their applications in the logistics industry virtually infinite. This is particularly true for e-commerce businesses, which require a high level of speed and efficiency to meet the rapid growth of online sales.
Very high demand for logistics robots in the supply chain management and defense & military verticals would put forward immense growth opportunities in the years come.
In 2012, Amazon set the bar in the logistics industry by purchasing a monopoly on Kiva robots. The robots fulfill the orders in less than 15 minutes with just 'one-click,' which usually requires 60 to 75 human workforce to complete the job. Thus, the company has reduced its operational expenses by 20%.
Other companies are adopting similar models to fill their warehouses to stay competitive.
Wearables are devices connected to the internet or other devices to increase communication to and from the users. Wearable technology will soon become a "must-have" technology in the logistics industry. According to the technology vendors, the productivity in warehouses and the supply chain can increase up to 30% with wearable devices.
Wearables are also beneficial to monitor the health and stress levels of the employees with the help of fitness trackers, while GPS helps to locate the employees quickly.
The German logistics company, DHL, carried out a pilot project at its warehouse to test the ability of wearable technology to increase speed and reduce human faults in warehouse order picking processes. The results of the pilot showcased an increase in operational efficiency by 25%, plus an increase in employee satisfaction also.
Drones have many promising applications which can grow the logistics business. The increase in the use of Drones for faster delivery of goods is one of the crucial aspects of the growth of the drones logistics market. The Drones Logistics Market is estimated to be USD 11.20 billion by 2022. Also, North America is projected to be the fastest-growing drone market between 2022 and 2027.
Thus, drones have the potential to immediately impact our ability to deliver products, both to dense, congested urban areas that would benefit from fewer cars on the road and to rural locations.
Global companies and startups are eager to establish their niche in this market.
Self-driving vehicles are a new reality of logistics today. Logistics companies have been successful in the early adoption of self-driving vehicle technologies, which have become possible due to the low regulations and controllable testing environments. Drivers account for around 30% of road transportation costs, so self-driving vehicles can reduce the lagging and inefficiency in transportation and grow the logistics business.
As a result, many logistics operations currently employ self-driving vehicles, from autonomous forklifts to small, driverless plant trucks.
Cloud computing applications have the potential to provide vast efficiency and flexibility options for the logistics industry. In the on-demand Logistics Industry, Cloud computing can be seen way beyond shipping goods from one place to another.
The critical factor that drives the growth of cloud computing in the logistics industry is security, system reliability, backup plans, and privacy.
A trillion-dollar Silicon Valley startup Flexport is one of the early adopters of cloud computing in the logistics industry.
Internet of things
The internet of things (IoT) allows physical items or devices to be connected to internet-enabled devices and systems.
IoT can grow logistics business in many ways, from temperature and humidity sensors that monitor supply-chain quality control to experimenting with technologies to detect when a package has been tampered with.
Companies are aggressively adopting IoT to their business operations as it surplus efficiency. There has been a staggering rise of 333% in IoT deployments since 2012.
3D printing is an automated method of producing stereotypes. Each object layer is printed in this additive process until a 3-dimensional product is created.
Logistics Trend Radar, published by DHL, predicts an annual growth rate of 13.5% for additive manufacturing. According to a McKinsey study, 3D printing marketing will make up USD 550 billion by 2025.
DHL will be adapting 3D printing in niche healthcare markets such as hearing aids and tooth implants. The company is on the way to catering products to their customers by 3D printing.
Augmented Reality can superimpose holographic images and instructions onto natural objects, which is immensely valuable for educating employees on using machinery and devices. According to DHL, Augmented Reality can reduce business costs by a quarter.
The best benefit of Augment Reality is that it can seamlessly be incorporated into the company's existing workflow. As a result, a business can improve parcel handling and load optimization, thereby spending less time loading and packing more cargo. DHL is launching smart glasses in warehouses across Europe, the USA, and Asia.
Keeping up with the latest technology is essential to remain competitive and enhance efficiency. The on-demand logistics industry benefits exceptionally from the latest technologies and will continue to grow as more advancements are made. The breakthroughs in technology will continue to push the boundaries of the on-demand logistics industry for years to come.
Appsrhino provides businesses with an on-demand application, a solution that makes all logistics planning processes efficient and convenient. Appsrhino solutions provide your enterprise with automation and optimization for delivery channels, route planning, and resource allocation.
All the on-field management processes can be managed digitally with more convenience. The possibilities to grow the logistics business increases with the solutions you execute every day for your business.
On-demand logistics services apps help businesses act cleverly in a market with stiff competition. Appsrhino solutions ensure that your business plan remains viable by arranging a platform for your logistical needs and creating a comprehensive program that a logistics manager can follow.