Current evolution of logistics: Where technology meets efficiency
The landscape of logistics is undergoing a profound transformation, driven by the imperative to leverage technology and data-driven strategies. The goal is to optimise supply chain operations, enhance supply chain visibility, and elevate customer satisfaction. This article delves into the key trends shaping the current evolution of logistics, aligning with the words of John Chambers, former Cisco CEO:
"At least 40% of all businesses will die in the next 10 years... if they don’t figure out how to change their entire company to accommodate new technologies."
Technological shift: The driver behind evolution
In the traditional logistics area, technology is the catalyst for change. From automation and data analytics to AI and machine learning, technology empowers logistics to evolve and meet the demands of a dynamic world: heightened customer expectations, global connectivity, and many more.
Here’s how technology acts as a driving force behind the evolution of logistics.
The use of automation transformed warehousing
Automation, including robotics, automated storage and retrieval systems (ASRS), and autonomous vehicles, is revolutionising warehouse operations. This transformative trend enhances efficiency, reduces labour costs, and augments safety, heralding a new era in logistics efficiency.
Integration of data analytics in supply chain
Data is the new currency of logistics. Data analytics and AI-driven insights provide logistics professionals with a panoramic view of supply chain operations. This integration optimises route planning, refines inventory management, and enhances decision-making.
For instance, DexoryView continuously monitors inventory and optimises warehouse efficiency, combining autonomous stock-scanning robots with powerful warehouse analytics. Through the platform, we automate data collection and build real-time digital twin technology that unlocks insights across all levels of warehouse operations.
This gives businesses an online visual representation of warehouse operations and the understanding of their inventory and resource with detailed location occupancy information, enabling rapid identification of inaccuracies and instant warehouse management system cross-check and validation.
Growth of eCommerce and the revolution of delivery
The ascent of eCommerce has led to an increased demand for expedited, dependable deliveries. Logistics is adapting by embracing cutting-edge technologies like drones and delivery robots, promising to redefine last-mile logistics.
Building supply chain resilience: The intelligent approach
Resilience in logistics is non-negotiable, especially in the face of disruptions. The fusion of analytics and AI fortifies supply chains by offering enhanced visibility, ensuring agile responses to challenges, and bolstering overall operational intelligence.
The emphasis on sustainability: Greening the logistics landscape
The logistics sector is embracing sustainability, acknowledging its environmental footprint. The adoption of green logistics practices, reverse logistics, and circular economy models alignprofitability with environmental responsibility.
Some businesses are already making the switch - United Parcel Service (UPS) has committed to purchase 10,000 electric delivery trucks over the next few years. The benefits? Emission reduction, lower operating costs, and positive brand image.
Shift towards customer-centricity and enhance the experience
Modern logistics revolves around customer-centricity. By embracing technologies like real-time tracking, personalised shipping options, and seamless returns, the industry is raising the bar on customer experience.
Conclusion: The path to logistics excellence
The evolution of logistics hinges on the synergy of technology, data-driven precision, and customer-centric practices. This evolution isn't just an option, it's a strategic imperative. By embracing the ongoing transformation, businesses can steer their operations towards enhanced efficiency, sustainability, and profitability.
The ability to adapt to new technologies isn't just a choice, it's the differentiating factor between businesses that thrive and those that falter.
To know more about the evolution of logistics and its impact on businesses, get your copy of our guide ‘The power of data in Logistics 4.0 - Leveraging technology for success and supply chain resilience’.