The smartphones have been a mediator connecting consumers with their needs by providing services from local groceries, taxi, and logistics, etc through the apps. So, smartphones have brought demands of consumers closer at their doorstep with just one tap on the screen. Be it ordering food, bouquets, cab or even trucks for delivery of goods. This has increased the demand for the logistics industry.
However, Logistics services is connecting different geographic areas supplying goods from one place to the other. According to Associated Chambers of Commerce (ASSOCHAM), the global logistics market at present is estimated to be around $3.5 trillion. In the North American region, USA and Canada furnish logistics market.
The USA enjoyed the revenue of $1.48 trillion from the transportation and logistics industry in 2015 due to excellent technological infrastructure and B2C sales. It comprises 8% annual gross domestic product(GDP).
With the constant implementation of technological advancements in logistical businesses like GPS, blockchain, automated trucks, the on-demand logistics business is rushing to cover every mile of triumph.
Due to a pool of profits incurring in the logistics industry and the human tendency to reap max profits, On-demand logistics has deepened its roots in the marketplace. For example, On-demand logistics jumbos like Dispatch and On-fleet have received funding of around $2 million and $3.9 million respectively have inspired many other budding entrepreneurs to join the on-demand logistics paradigm.
While the logistics industry is molding in accordance with varied fluctuations and shifts in the market. These changes are broadcasting certain trends which will certainly offer you the best opportunities which will further trigger to invest in your on-demand logistics venture dream.
Logistics Industry trends taking place in 2019 are:
- Smartphone penetration:
With the increase in penetration of smartphone, the demand of availing services on-demand has increased abruptly and it’s been quite a trend among millennials. It is predicted that smartphone penetration in Australia will increase to 90% rising from 83% in 2018.
India, on the other hand, will touch smartphone penetration to 85-90% by 2020 as compared to 75% in 2018. Therefore, with an increase in smartphone penetration and surge to access services at the fastest has ushered many entrepreneurs to establish a niche in the logistics industry.
- Consumer expectations
Consumer expectations are highly increasing. A consumer may prefer shipping within one or two days. Even, it is expected that same-day delivery may become normal using drones, crowd-sourced delivery, and networks of drivers.
As it is said, “One size doesn’t fit all”. The best shipping options may not work for all of your target audience. So, a customized experience is required to make masses satisfied with your service.
Therefore, variable logistics operations are becoming standard in the logistics industry. For example, Amazon Prime, by delivering products in less time has satisfied masses and earned $22.6 billion in 2018.
Entrepreneurs have a great opportunity to push operations forward, soaring productivity and leverage new technologies in 2019. The surge to adopt automation has inspired many entrepreneurs to implement high-end technology as a part of their ventures.
In the USA, around 70% of freight is carried by trucks but a shortage of skilled truck drivers is a pain for the logistics industry.
According to the American Trucking Associations, at present, the industry is short of 50,000 drivers and it is estimated that numbers could rise up to 175,000 by 2024. Thus, Uber Otto successfully deployed self-driving trucks in 33 states of USA and has a market valuation of $680 million.
On the other hand, Embark has been transporting refrigerators on an automated freight route from Los Angeles to Texas. With the introduction of automated trucks in the logistics industry, the supply chain has followed a smooth track in the logistics paradigm. Thus, the development of autonomous vehicles in the logistics industry is a global trend.
In Blockchain technology, every transactional data is replicated and recorded in many devices making a chain-like structure. It a great tool to impart security in the software. Blockchain has a wide array of scope in changing the fate of existing logistics and supply chain network.
Today consumers are more eager to know everything about the product they use. The traditional supply chain and logistics network is complex. Thus, the emerging trend of blockchain technology is quite a trend and is widely implemented to track deliveries, updating inventories and many more. The blockchain technology has made consumers in making better-informed decisions.
- Perfect Orders:
Perfect order is the percentage of orders transported at the right place, with the right product, at the right time, in the right condition, in the right package, in the right quantity, with the right documentation, to the right customer, and with the correct invoice. It is an index used to measure business efficiency and thereby, customer satisfaction.
It is evaluated by measuring four key facets of an order such as complete shipping, damage-free shipping, on-time deliveries and correct documentation. According to SCMR survey, only 84% of all orders fulfill perfect order standards. Rest, 16% offers more chances for improvement with the aid of new advanced technologies like RFID, bar-codes.
Advanced technologies are helping logistics companies achieve a higher rate of perfect orders. Logistics is moving forward. There is pressure to manage and fulfill more demands, adhere to the latest regulations. Logistics service providers and upgraded technology will be integral to the success of this industry in 2019.
The essence of these top logistics trends falls to the use of technology and constant innovation. So, it is going to be really crucial for the logistics industry to adopt technology and innovation. These trends are going to shape the logistics industry in 2019.
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