The logistics industry is one of the massive markets that are estimated to be worth more than $4 trillion globally. It affects and facilitates the supply chain process of a wide range of business sectors such as fashion, e-commerce, and automobile.
In this scenario, it is noteworthy to mention that the industry has turned depending on digitalization nearly by its full in the last five years. It evolved, transformed, and developed with innovative technological changes that arose in the market. And, because of this advancement, customers became unstressed as they receive each update about the progress of their product’s shipment.
Now, in this article, let’s have a brief discussion about how logistics has transformed with the invent of advanced technologies, and which are the five major innovations that took place in this sector.
- IoT and Big Data
IoT performs a major role in the logistics domain by creating a smart location management system that enables companies to easily track delivery activities, delivery status, and vehicle locations. It encompasses the use of sensors and networks to allow devices, infrastructures, and additional ‘things’ to share supply chain information without human interaction.
Apart from this, the logistics make use of the potential of Big Data that can only be exploited by eliminating human involvement from the decision-making process.
The electronic Air Waybill (e-AWB) is the standardized digital version of the existing paper Air Waybill that follows cargo from the shipper to the shopper. It enhances the tracking and processing activity of the cargo as well as it increases transparency, improves security, and reduces operational costs.
Perhaps, the most important aspect of e-AWB is that it opens a way for digital technologies to enter the market. Without a basic standard of digital data sharing across the air-freight industry, technologies like big data, cloud logistics, and IoT will be severely hampered in their usefulness.
- Cloud Logistics
Cloud logistics is gaining rapid adoption in the logistics industry. Reports reveal that 50 percent of logistic providers are already using cloud services, and another 20 percent is on the way to start using it. As digitalization blends with the industry, logistics develops its IT services to make it a flexible, on-demand, and pay-per-use model. This indicates that smaller businesses no longer required to fork out on monolithic IT structures, paying only for what they need when they need it.
- Autonomous Vehicles
It is positive to observe that autonomous vehicles can revolutionize the global logistics industry. With technology giants such as Google and vehicle manufacturers Mercedes Benz investing heavily in this concept, it is only a matter of time before autonomous trucks are seen on roads around the world.
- Alternative Fuels
One of the important factors that promise technological growth in logistics is the consumption of alternative fuels such as electricity, hydrogen cells, and natural gases for the regulation of diesel engines. The logistics industry can make use of the utilization of alternative fuels as it promises a guaranteed future for the industry.