In the previous blog on the Emerging Technology Trends in Logistics Industry, we started a discussion on the different evolving trends. With the implementation of these trends the supply chain of future will be leaner, faster and above all self-orchestrated. And as mentioned previously, let’s continue the discussion on emerging technology trends.
Must Read: Technology Trends in Future Gaming Industry
1. Robot Warehouses –
E-commerce companies have changed the way of shopping and delivery. But there is still a serious bottleneck in the logistics supply chain of this industry, that is the Human Stock Pickers. Many distribution centers have already implemented automation in their distribution centers, around the world.
To fulfill the increasing ecommerce orders, retailers need to employ a large number of workers for picking orders from the warehouses and ship them to respective customers. Amazon has developed its own robotic division, Kiva Systems and also hosts an annual robotic picking challenge, where robots perform real-world tasks of picking orders, restocking and shelving.
Image Source: cdn.patchcdn.com
2. AR In Warehouse –
Augmented Reality is the the next big tech trend in Logistics Industry. The success of Pokemon Go, has opened new doors and possibilities of application of Augmented Reality Technology in many other industries.
Logistics industry is using this technology to reinvent the picking process in warehouses. A trending concept is, the usage of AR glasses by workers in the warehouse. The AR glasses can integrate the product information and display it in front of your eyes, scan barcodes, support indoor navigation and increase the efficiency of manual handling of products.
The benefits of using AR in warehouse picking process are higher efficiency, reduced errors, reduced training needs and an optimized use of labor. But the performance of the system, battery life, size and weight are seen as primary technical challenges.
Image Source: offshoringtbos.com
3. On Demand Delivery –
Uber and other online cab services brought about an evolution in the way of commuting in cities by offering facility of, on the spot booking and easy availability. In present time, smartphones are the way customers connect with nearby workers on demand.
A number of startups are transforming the way we shop and eat by developing their services to provide same day or same hour delivery to their customers. Advancements in the mobile technology, which has given us the convenience of ordering from anywhere has influenced the companies to support on-demand delivery.
Image Source: i0.wp.com
4. Uberization Of Trucks –
Uber cabs have changed the way we commute within and between cities. Now, cab companies are evolving to serve for freight movements for long distances. Many trucking companies are experimenting with Uber like apps and services with a hope that the apps and services which worked for general people could do wonders for the commercial shipping as well.
Image Source: 4sightsolution.com
Advantages of Embracing These Technology Trends
No industry goes on to implement and apply technology until and unless the benefits are enormous in every aspect, from cost to quality to management. Some benefits of embracing these emerging technologies as per HCL are as follows:
- Real-time tracking of cargo shipments.
- Technology enhancement gets the industry in par with marketplace.
- Estimated Savings of 10 to 15% on manpower cost.
- Increase in efficiency of the employees.
- Increase in the number of satisfied customer.
- Reduction in bottlenecks in inventory picking process.
- Optimization of routes and Tracking of transport assets.
Need To Embrace These Technologies
While the millennials are more than willing to welcome these technologies with open arms, the older generation still seems a little sceptical about it. Of course, the latter can’t be blamed for it, since many do not like to move out of their comfort zone when it comes to bringing about a change. To justify to the likes of them, here are some reasons why we need to embrace these technologies:
a. Growth Patterns –
The present growth pattern in logistics industry is no more predictable and similar to traditional export trends from Asia to North America and Europe.
b. Flexibility –
For the present consumers, we need to have a flexible supply chain that can easily adapt to unexpected changes in the demands of the consumers at different times, at multiple locations and using multiple transport modes.
c. Near Shoring –
More and more manufacturing units are being developed closer to the end-user market due to increase in the cost of transportation and labor cost in Asia.
d. Multi-Channel Sourcing –
The Logistics Industry need to develop plans in a way to support the multi-channel strategies of their customers. For now, the end-consumers do not have a fixed shop for buying the goods. Sometimes they buy goods from Brick & Mortar shops while at other times they shop from e-commerce websites.
e. Information Technology –
Supply chain needs advanced Information Technology Solutions to deal with the growing complexity and dynamism.
f. Continuity –
The implementation of the advanced technology will assure the speed to market and reduce the risks of delays by planning for alternative transport modes and routes well in advance to have continued outsourcing of logistics services.
g. Sustainability –
With increased awareness, customers prefer products that are made and sourced in the right way. Hence, enhancing positive effects and reducing business’ social, economic and environmental impact on society.
h. End-to-end Visibility –
The supply chain could be transformed into a demand-driven planning by giving a complete visibility of the entire supply chain to the consumers. This development will help in responding efficiently to changes in sourcing, supply, capacity and demand.
Every year industries observes the application of some new trends. While some fade into obscurity, some mature into breakthroughs which revolutionize the entire industry. Let’s see what will stay the longest. Subscribe to our newsletter to receive more such technical blogs in your inbox.