13 Emerging Technologies Reshaping The Future of Logistics

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Technology advancements affect all businesses, but logistics and supply chain are the most affected. The logistics business is known for its extensive use of manual procedures and enormous volumes of data kept in multiple ways and places. It has benefitted the most from new technologies and the latest supply chain and logistics technology developments.

The logistics business has made considerable strides in AI, analytics, and automation in recent years. These technologies have changed quicker than ever before, while companies with even more novel ideas and breakthroughs continue to emerge at an alarming rate. Nevertheless, these advancements bring new expectations and norms, causing influential logistics organizations to adapt or stay caught up. Customers—individuals and businesses—demand faster and cheaper delivery of goods and services.

Logistics and supply chain companies innovate to prepare for these significant shifts.

Trends In Logistics Technology

These developments can help you stay ahead of the competition 

  • Machine learning (ML)

  • Artificial intelligence (AI)

  • IoT (Internet of Things)

  • Blockchain

  • Supply chain integration

Customers want real-time communication, technologies, and faster delivery. So these logistical trends are more important than ever. 

Why is it important to stay current on transportation and logistics trends?

Customers nowadays are digitally sophisticated, which leads to higher expectations from organizations. They desire:

  • Fast shipment

  • Flexibility

  • Real-time visibility

  • Good customer service

Only companies that adjust to new technologies succeed over time. 

Growing venture capitalist (VC) and enterprise investment in logistics startups

As VC investing in logistics startups grows, major logistics businesses are starting to follow suit. A logistics startup needs to get proper advice regarding transportation and warehousing insurance too. Several of them have invested a fortune in new technology invented by brilliant companies or have even purchased them whole. Logistics firms use their resources and drive R&D with their new partners this way. This collaboration has paved the road for logistics process automation. 

Logistics technological developments in 2023

Digital technology usage has expanded since the COVID-19 epidemic, affecting e-commerce and the global supply chain.

A McKinsey Global Survey of CEOs found that the COVID-19 response boosted digital technology adoption for customer and supply-chain interaction and internal operations by three to four years. As 2022 has shown, many of these changes are long-term. In reaction to the new normal, some companies that used short-term solutions have changed quickly.

Logistics had to adjust after the outbreak. Digitization and last-mile software assist B2B and B2C carriers, shippers, and others. The automation of logistics processes improves workflow performance and adaptability. Technology lowers supply chain costs and faults. To compete, logistics companies have to adapt to new technologies and rules.

Successful companies combine new technology with old. This improves client service and loyalty. Let's discover the latest technology trends in logistics and how they boost business.

Advanced transportation and logistics technology

These are the significant technical developments transforming the logistics’ business future.

1. Automation

Logistics robotics increases the speed and precision of supply chain activities while reducing human error. Robots outperform humans in uptime and efficiency. Robots work with humans to boost productivity.

Warehouses and storage use physical robots like co-bots and autonomous mobile robots to pick and move items. Software robots also perform mundane tasks, freeing time for more vital tasks. Its enhanced overall operating efficiency leads to safer and more secure product delivery.

Automation for parking management

Logistics companies also use parking management software (PMS) to 

  • maximize parking space

  • control the flow of vehicles

  • assure the safety of fleet and people

A parking booking system enables businesses to:

  • manage numerous fees

  • handle payments

  • limit access to parking places 

It connects with video surveillance or image recognition technologies. Integration with software for entrance and exit stations and POS or payment stations is vital for parking management. 

2. IoT

IoT is a network of linked devices that monitor and communicate physical world data without human involvement. IoT increases supply chain inventory management through visibility.

RFID, GPS, and sensors track parcels in real-time. These eliminate supply chain bottlenecks through:

  • Geo-fencing

  • Geo-tagging

  • Parking booking system

  • proximity alerts 

The forward supply chain promptly processes trackable inbound freight. This improves efficiency, transparency, and transfer times. IoT enhances”

  • fleet management

  • inventory visibility

  • transportation visibility

  • logistics

  • on-time delivery

This technology, thus, saves consumers’ money and time.

3. Fully autonomous vehicles (AV)

As AVs operate 24/7, they improve first and last-mile deliveries. They also:

  • Reduce human error

  • Improve vehicle safety

  • Assist with transporting products

Self-driving trucks, ghost cargo ships, and drones are also revolutionizing logistics. This invention simplifies:

  • Transportation

  • Warehouse operations and

  • Last-mile deliveries

AI-enhanced autonomous automobiles also:

  • Optimize routes

  • Eliminate traffic delays

  • Improve fuel efficiency for long-haul trips 

This leads to the faster, more secure, and more economical delivery of goods. 

Impact of AV on vehicle insurance

Automated driving also influences the car hauler insurance industry significantly. It drastically reduces accidents, leading to enhanced safety.It transfers auto insurance to a predict and prevent offering. Notably, the responsibility of insurance transfers from the human operator to the commercial entity involved with AV technology and its capabilities.

4. Low-to-no asset networks

Aggregators don't have warehouses, freight movers, or fleets. They provide a proprietary solution that suppliers, shippers, and others use according to their business models. Networks, technology, and automation improve customer logistics in this tech-driven strategy. Due to the high cost of acquiring and maintaining physical assets, most startups opt for asset-light parts of the value chain, such as digital freight forwarding.  It shows regional demand fragmentation, combines it and saves money. 

5. Transportation Management Systems (TMS)

Transportation Management Systems are becoming increasingly popular, particularly among logistics companies and appropriately so, given that the organization and control of several technical instruments requires a central hub. TMS enhances route automation and carrier management. It also helps:

  • track delivery drivers

  • cut freight costs

  • increase transparency

  • boost customer happiness

 6. Artificial intelligence (AI)

Cognitive automation technology based on AI improves administrative intelligence and accelerates data-intensive logistical processes. Using AI algorithms with machine learning helps businesses adapt to market volatility. Self-driving and intelligent road technology have improved logistics service automation.

Managers use an AI-based predictive solution to manage supply chain operations and exploit cost-cutting opportunities. This also contributes to a more accurate projection of delivery dates and greater customer satisfaction.

7. Blockchain technology

Blockchain addresses vital traceability and encryption through a decentralized ledger system. It makes the logistical process more transparent.

Blockchain-based smart contracts speed up acceptance and clearing by lowering checkpoint processing time. Blockchain technology accelerates the procedure from beginning to end and expedites the delivery.

8. Big data & data analytics

Data analytics optimizes warehouse operations and employee performance by using available logistical assets. The data from tracking location, weather, and fleet schedules help plan delivery routes.

The study of market data improves the price, stock levels, and risk management of providers' reports. In addition, enhanced analytics give insights that facilitate detecting abnormalities and delivering preventive maintenance solutions.

9. Warehouse automation

A combination of automation technologies is required for warehouses to manage their operations effectively. In warehouse automation, decreased human involvement improves:

  • Performance

  • Speed

  • Production

Automatic guided vehicles and robot picking also:

  • Reduce mistakes

  • Increase warehouse productivity

  • Improve material handling 

10. Cloud computing

Pay-per-use models with a minimum initial investment are viable with cloud-based technology for shipping companies. This decreases the risk and cost of maintaining IT infrastructure. Eliminating connectivity hurdles through cloud-based logistics solutions enable firms to interact and exchange data securely.

Cloud integration allows the collection and analysis of data from management systems to further improve comprehension of logistical procedures. Lastly, cloud-integrated logistics is accessible from any location and isn’t restricted by physical location. This technology affects the entire cost of operations and decreases transportation expenses. Hence, transporting materials becomes cheaper.

11. Elastic logistics

Elastic logistics solve supply chain problems such as:

  • Vessel underutilization

  • Warehouse limits

  • Overstocking

Flexible logistics improve supply chain efficiency amid demand fluctuations. It allows supply chain activities to be scaled up or down based on market demand, giving clients more cost-effective options.

12. Augmentation of reality

Threats to the security of high-value shipments, including hijacking, must be addressed. Augmented reality and facial recognition technologies are enabling secure logistical delivery. Indoor navigation and building recognition improve last-mile deliveries. Augmented reality also improves package and warehouse planning in supply chain management. 

13. Last-mile delivery

The last stage of the supply chain, from the production or finishing center to the customer, needs to be more efficient. It accounts for a large amount of the cost of moving goods. Last-mile distribution is, in reality, the most crucial logistics component, as it’s directly related to consumer loyalty. Many integrated and advanced technologies improve product delivery at the last mile.

Logistics and supply chain companies must prepare for technological advances

Be more cautious as technology evolves and notice potentially harmful developments early. Decide which emerging technologies to invest in early as IoT, sophisticated mobile robots, and AI are developing quickly.

The logistics business has significantly profited from recent technology breakthroughs and continues to do so. Early discovery of new prospects and developing technologies to adopt in your firm can provide you with a competitive edge and improved customer service.

About The Author
Fatema Aliasgar is an experienced B2B and SaaS content writer based in Mumbai, India. She has done her Master's in Business Management and has written B2B content for seven years. She likes to read non-fiction and play board games with her kids during her free time.