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Trends In Logistics

30/12/2021 04:20 PM
For the global logistics industry, the COVID-19 pandemic has been both a boon and a bane. It has been a bane because it had to face several challenges (and is still facing many of them) including, but not limited to, shortage of containers, blockage of a sea-route, increasing sea and air freight charges, container ships' congestion at US seaports, unavailability of truck drivers in the UK, growing demand for parcel services due to e-commerce boost, and shipping delays.

This resulted in acceleration of several pre-existing trends like digital transformation and automation, including delivery by drones, use of robots in warehouses, driverless vehicles, and fully automated logistics planning.

Internet of Things (IoT):  With IoT, data can be transferred over any network, allowing it to monitor people, employees, and equipment while ensuring their safety and security. It allows management to assess and understand the ongoing activities of a factory or a company, such as how equipment and machines are operating, ambient conditions, overall energy consumption, inventory levels, and the flow of materials, at any given moment.

Artificial Intelligence (AI): Currently, 1.1 million robots are working and functional throughout the world. Their production and delivery processes are efficient and reliable. Furthermore, they can be used in factories along with human workers. Japan and the US have implemented robotics services and AI in several of their logistics processes.

3D Printing:  3D printing enables organisations to store and replace parts in virtual warehouses via data models and in digital form, which will allow them to be printed anytime and anywhere. By adopting 3D printing, companies are now able to manufacture products in small batches on demand, in close proximity to the end customer, and with the capability to customise the product. According to Fortune Business Insights, the global 3D printing market size is expected to grow from $15.26 billion in 2021 to $68.71 billion in 2028 at a CAGR of 24 per cent in the forecast period of 2021-2028.

Drone Delivery: Two years ago, when Amazon announced that it would use drones for delivering goods, it attracted a lot of attention. A number of companies have since announced drone delivery plans or are considering them.

Driverless Vehicles: These vehicles can drive and navigate without any human assistance. As of today, only one in eight logistics companies have any knowledge or expertise in this area.

Some of the trends that we can expect in the global logistics industry in the next few years:

-         Sustainability and reducing environmental footprint will be the top priorities

-         Electromobility will contribute largely to greener transportation

-         Use of blockchain technology could revolutionise the logistics industry

-         New transportation alternatives will be used

-         Maritime Logistics

Challenges To Global Logistics

Thanks to technological advances, changing consumer expectations, the pandemic and stringent government regulations, global logistics companies are facing several challenges today such as: Enhancing Business Processes, Boosting Customer Service, Improving Supply Chain Visibility, Meeting Government Regulations, Taking Care of Sustainability.

Source: Fibre2Fashion

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