Technology has changed the world’s function and this is also true for logistic companies too. The importance of technology is such in the logistic sector that it has become a prerequisite for success in this sector.
In order to excel as a logistic company, it is important to understand how the available technologies should be used for creating more efficiency. The logistic sector is rich in data and this creates ample opportunities to use technology to get the maximum benefits out of it. The logistics sector has, in fact, started incorporating technology on a huge scale too. Here is a list of seven such technological breakthroughs that are shaping the logistic industry.
1. Physical Internet Based On IoT
Physical internet based on IoT is used by logistic companies like XpressBees for improving the supply chain and further for creating transparency in it along with increasing its efficiency. It is also helpful in making the resource planning process more efficient. This, in turn, improves environmental sustainability. With the physical internet based on the IoT, even the social expectations around security and data privacy are changing in the logistic sector.
2. Data Analytics
It is mostly used by logistic companies like Pakistan Post for improving the customer experience. In addition to that, data analytics also improve operational efficiency in the business. It also creates greater inventory visibility and improves the management process by improving predictive maintenance.
3. Blockchain
Blockchain is mostly used in the logistic sector for enhancing the security of the supply chain by reducing the incidents of fraud activities. Blockchain is also helpful in reducing bottlenecks and errors as it eliminates the usage of paper-based documentation. Overall, blockchain helps in improving the efficiency of the working of a logistic business.
4. Robotics and Automation
By implementing robotics and automation, the load in the human workforce in the logistic sector is reduced. Apart from reducing the load, it also improves delivery efficiency. Robotics and automation also contribute in sorting and managing the distribution centres or the warehouse. The contribution of robotics and automation also lowes the operational cost in a logistic business too.
5. Autonomous Vehicles
Autonomous vehicles, even though not used in a full-fledged manner, are being experimented with by many logistic businesses. When the usage of autonomous vehicles takes place in a huge scale, it can be beneficial for reducing a huge chunk of load from the human workforce. Apart from that, it will also increase the efficiency of the delivery process by multiple folds.
6. Drones
The usage of drones is another technological breakthrough in the logistic sector that is changing the way deliveries are done by the logistic sector. Its usage will increase the efficiency of cost management by working towards delivery, surveillance and inventory. It will further again reduce the load of the human workforce.
7. Cloud Computing
Cloud computing is drastically changing the dynamics of the logistic sector. Cloud computing is especially useful for managing the assets of the business. Further, it does not need any geographical boundaries and helps in making the world a more linked place. It is also easier to understand the different aspects of the logistic industry with the help of cloud computing. It further allows the business to include new business models too.
Technology enables automation and this helps businesses reshape the workforce. The Logistics industry is a labor intensive sector and labor has always been an important element. Till now, there was always a trade-off taking place between the labor costs and service levels but this is not the case now with the intervention of technology. Technology is improving the logistic sector on multiple levels.
It is even possible to work in the labor-intensive department of the logistic industry. This not only increases the level of sophistication but also reduces the costs. Data processing advancement is also helpful in automating tasks. In addition to data management, even the package delivery is being automated and made autonomous. Big companies like Google are already working towards it. In the near future, technology will indeed play a big role in the logistics sector. The highly segmented sector will highly benefit from the technological intervention and these technological breakthroughs are required for the advancement in the logistic sector.
