Advancements in technology affect all of us in too many ways to count; in logistics, too, new technology is rapidly changing the way business is done. With consumer demands for shipping to be faster, cheaper, and more flexible, keeping on the pulse of the developments shaping today’s logistics industry is more important than ever.
One of the most impactful trends driving this change is the digital transformation in logistics—bringing about smarter, faster, and more integrated operations than ever before.
In this article, we’ll take a look at two of the most exciting changes at hand for the future of logistics: Automation and artificial intelligence, or, as it’s most commonly called, AI.
Automation is the practice of developing and using technology that reduces human input. Artificial intelligence, on the other hand, refers to using computer science to solve complex problems—problems which, until now, have required creative thinking, human capital, and adaptability.
While automation may be more widespread and developed today within supply chain procedures than AI, both are wide and still-growing fields of innovation in technology in logistics.
When it comes to these technologies and modern life, it’s all around you. From hands-free operating systems like Siri and Alexa to self-checkout lines at the grocery store, automation and AI are slowly but surely becoming go-to tools for businesses at the cutting edge of their industries—including logistics companies investing in full-scale digital transformation in logistics.
Automation, AI, And Supply Chain: What You Need To Know
AI and automation play a crucial role today in packaging, route optimization, and predicting breakdowns in supply chains.
Estimates show that trucks often travel with as much as half of their storage space left empty. This occurs from human errors, breakdowns in communication, and even different units of measurement used for different products. Warehouses using robotics and AI are now achieving greater precision in inventory control, reducing costly mistakes like misplaced goods or scanning errors. These advancements are key to logistics services looking to scale efficiently.
AI can better analyze databases and automated procedures in warehouses to pack crates more efficiently than a human ground crew. It can make sure more crates are packed quickly, cost-effectively, and—most importantly—in a way so that nothing falls over and breaks.
For day-to-day operations, AI is also a crucial tool for warehouses. Warehouses are growing in size and taking on more and more types of goods. AI and robotics technology step in to allow for more precise inventory controls and cut back on errors like misplacing goods and incorrect scanning of digital tags.
Trend-prediction is another way that AI is shaping innovation in the logistics industry. Using big data and algorithms, computer systems are increasingly able to help companies manage warehouse stock with more accuracy. All in all, this combines with increasingly-automated warehouse operations to greatly reduce waste.
A heat wave in Hong Kong or a port closure in Vietnam both require fast action—action that can be best managed with the help of automation and AI. If a company employs systems that can understand how demand will change in-the-moment and react quickly, the benefits of being one step ahead of the curve add up.
The Future Of Logistics
According to a study by research firm P&S, AI in the transportation market is expected to reach US$3.5 billion by 2023. Automation is set to see massive growth, too, with a projected market value nearing US$90 billion by 2026. What does that mean for you?
Reductions in human error
round-the-clock shipping
unlocked routes previously out of reach
For customers, wondering exactly where a package is may become a thing of the past. Highly-accurate, real-time tracking from start to finish could soon be an industry practice. And looking even further ahead, a large-scale uptake in driverless vehicles may become a transformative asset for logistics providers across the globe that works to eliminate hold-ups like driver delays or staffing complications that may have previously stalled operations.
And looking ahead, driverless delivery vehicles and predictive AI systems could soon become key differentiators for any logistics company focused on scale and speed.
Work With a 4PL Logistics Company Driving Digital Transformation
In an industry where speed, flexibility, and transparency are key, partnering with a provider leading the charge in digital transformation in logistics can give your business a competitive edge.
Don’t miss out on the exciting developments happening in logistics and make sure your business can take full advantage of technologies that push you forward in efficiency, scale, and more.
At Wayfindr(formerly CBIP), we don’t just offer traditional logistics services—we build adaptive, tech-powered logistics ecosystems. From integrating platforms like Gravity Supply Chain and Anchanto, to developing tailored logistics automation strategies for your needs, we’re helping clients streamline every step of the supply chain.
To learn how Wayfindr can help you work smarter and keep on the cutting edge of logistics solutions, get in touch for a free consultation today.
Nick co-founded Wayfindr to help brands design and build market-leading carbon-neutral D2C logistics. As Director, he brings 15+ years of experience across logistics, marketing, supply chain and retail from Asia Pacific to the world.
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