Do you wanna know how to grow logistics business or want some logistics business ideas?
Here you can find how technology can help you in escalating your logistics business onto the next level.
While logistics has become an important part of the global economic system, the global supply chain has been growing tremendously. And, thus, technology can play its part by streamlining your logistics business succeed in the long run. The logistics industry in 2018 in the U.S. grew at a rate of 7.2% CAGR. Thus, efficient logistics is an important aspect of the growth of the economy globally.
As an answer to how to improve logistics business, Logistics can be described as the right product or service at the right place, at the right time and in the right condition. The major components of logistics involved in the proper functioning of an organization or business are inventory management, material handling, warehousing, inbound and outbound transportation, etc. The advancements in technology which constitute automated machinery, GPS, Cloud computing, Augmented Reality, etc. help organizations to operate proficiently, thereby, propelling the flourishment of on-demand logistics marketplace across the globe.
So, here is how to grow logistics business with technology.
As an answer to how to increase sales in the logistics business, while logistics has become an important part of the global economic system, the global supply chain is growing tremendously and advancements in the technology can help to streamline and grow business in the longer run. Logistics can be described as the right product or service at the right place, at the right time and in the right condition. Efficient logistics is an important aspect of the growth of the economy globally. The logistics industry in the U.S. grew at a rate of 7.2% CAGR in 2018.
As an answer to how to improve 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 inculcated at all levels in the planning and execution of the movement of the 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 the ways that these seven technologies are crucial for the transformation of the industry.
Automation in logistics is the use of software to increase the operational efficiency of a business. Automation offers a variety of solutions for the logistics industry from advancing package labeling to automated storage at an assigned location to automated retrieval of orders to automated dispatch processing.
Therefore, Logistics Automation drastically reduces the human workforce to run set of operations like packaging, labeling or storage of products in the warehouses.
Holland’s Port of Rotterdam, often called “the most advanced port in the world,” is a leader in the adoption of this technology. The port’s fully-automated container terminals use a computer- programmed stacking cranes to unload cargo in ways 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 as much as 30 percent.
Robotics are automated machines that increase the efficiency and grow 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 succeeded in reducing its operational expenses by 20%.
To stay competitive, other companies are adopting similar models to fill their warehouses.
Wearables are devices that are connected to the internet or other devices in order to increase communication to and from the users. Wearable technology will soon become a “must have” technology in the logistics industry. According to the vendors of technology, the productivity in warehouses and supply chain can increase up to 30% with the usage of 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 easily.
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 in pilot showcased the increase in operational efficiency by 25%, plus, an increase in employee satisfaction also.
Drones have many promising applications which in turn can grow logistics business. The increase in the use of Drones for faster delivery of goods is one of the crucial aspects to the growth of 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 any logistics today. Logistics companies have been successful in the early adoption of self-driving vehicle technologies, which becomes possible due to the low regulations and controllable testing environments. Drivers account around 30% of road transportation costs, so self-driving vehicles can reduce the lagging and inefficiency in transportation and grow 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 the shipping of goods from one place to another. The key 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 using temperature and humidity sensors that monitor supply-chain quality control to experiment with technologies that can detect when a package has tampered.
A report by Cisco estimates that by 2020, IoT will present USD 1.9 trillion for the logistics, that is, more than 50 billion devices will be connected to the internet. Companies are aggressively adopting IoT to their business operations as it surplus the efficiency. There is a staggering rise of 333% in IoT deployments since 2012.
3D printing is an automated method of producing stereotypes. In this additive process, each layer of the object is printed until a 3-dimensional product is created. Logistics Trend radar, published by DHL predicts an annual growth rate of 13.5% by additive manufacturing. According to a McKinsey study, 3D printing marketing will make up a market of USD 550 billion by 2025.
DHL will be adapting 3D printing in niche healthcare markets such as hearing aids and tooth implants shortly. The company is on the way to cater products to their customers by 3D printing .
Augmented reality can superimpose holographic images and instructions onto real objects which is immensely valuable for educating employees on the use of machinery and devices. According to DHL, Augmented reality can reduce the business cost by a quarter. The best benefit of Augment Reality is that it can seamlessly be incorporated into the existing workflow of the company. As a result, a business can improve parcel handling and load optimization, thereby spending less time loading and packing more cargo. DHL is launching the smart glasses in warehouses across Europe, USA and Asia.
To remain competitive and enhance efficiency, keeping up with the latest technology is essential. The on-demand logistics industry is benefiting 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 on-demand logistics industry for years to come.
Appsrhino provides businesses with an on demand application, a solution that makes all the process of logistics planning efficient and convenient. Appsrhino solutions provide your enterprise with automation and optimization for delivery channels, route planning, and resource allocation. Now, all the on-field management processes could be managed digitally with more convenience. The possibilities to grow logistics business increases with the solutions you execute every day for your business.
On-demand logistics services apps help businesses to act cleverly in a market with stiff competition. Appsrhino solutions involve ensuring that your business plan remains viable by arranging a platform for all of your logistical needs and creating a comprehensive plan that a logistics manager can follow.