Advances in supply chain and logistics are increasingly technology-driven in the face of growing globalization of trade. The drive for improvising logistics services stems primarily from the need for reducing the complexity in supply chains, achieving resilience in operations, and bringing down operating cost. Logistics has and will be a vital cog in the wheels of the manufacturing industries world over, especially with regard to the transportation and storage of large volumes of goods. To this end, technology-driven management of supply chain practices holds vast potential. Against this backdrop, robotics is gradually emerging to become the new normal in the logistics market, mainly for developing a robust omni-channel business environment. The consistent objective of these technology advances are customer satisfaction and overcoming last-mile issues in transportation.
According to a projection by Transparency Market Research, the market will cross a worth of 93104.9 million tons.
Why Technology will be Key Driver in Advances in Logistics and Transportation?
Technology advancements are being typically witnessed in global positioning system (GPS), warehouse management systems, order entry systems, and transportation management system (TMS). Such strides have been underpinned by the rising adoption of technologies that adhered to better practices such as collaborative planning, forecasting, and replenishment (CPFR) and vendor managed inventory (VMI). Logistics companies are leveraging the benefits of radio frequency identification (RFID) and connected sensors along with internet of things (IoT) for tracking, making shipments more automated. Coupled with artificial intelligence (AI) technology, these technologies will bring more efficiency in supply chains.
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Which application segments are likely to contribute sizeable revenues of the logistics and transportation?
Giant strides made by e-commerce in various parts of the globe has caused substantial degree of disruption to logistics and supply chain management. This has given rapid boost to the manufacturing and retail sectors. Retail giants with the likes of Amazon and Walmart have been actively looking for consolidating their logistics and supply chains. Considerable progress has been made in online retail in emerging economies. This rides on the back of rising popularity of online shopping owing to its convenience and relatively low prices.
The industrial and manufacturing sector is another attractive application segment. The rising use of modern logistics technologies in the manufacturing industry is fueled by considerable rise in consumer spending in various parts of the world. Manufacturers are leveraging the potential of the technologies to increase efficiency in the production process and ultimately improvements in the output. Meanwhile, oil and gas industries are expected to emerge as lucrative application segment in the near future.
What are some of the recent industry developments that will confer large gains to the logistics market?
Ceaseless focus on increasing shipment visibility has made some prominent technology companies in the logistics market build on logistics technologies for improving shipment visibility and bringing customer transparency. For instance, recently Intel has planned to bolster Connected Logistics Platform in India. The efforts will focus on an early product damage detection mechanism and real-time transparency of shipment progress for high-value goods.
Developing countries notably China have been focusing on build high-technology logistic hubs by 2025. The Government of China is actively improving logistics efficiencies by focusing on parcel-delivery, high-speed rail, and cold chain capacity.
