Here are the trends you need to be prepared for in the logistics sector.
The Radio Frequency Identity (RFID) chips have gained fame for over a decade. They promise to offer real-time tracking of containers and products and provide information. However, although most companies have invested in RFID, they have not seen a return on investment (ROI). While RFID can be expensive for logistics companies, it plays a crucial role in visibility, which is currently a game changer in the industry. RFID systems can provide precise location and data in real-time when integrated well.
Today, nobody in the world can talk of new trends without mentioning blockchain somewhere in the conversation. This is an area that has seen a lot of focus from almost every industry, including the logistics sector, where it is changing fortunes. In 2022, for example, it is expected that the worldwide spending on blockchain solutions will reach 11 billion US dollars, according to Accenture. The supply chain has been a steadily increasing trend in the global logistics space for the last few years. Successful adoption of blockchain will automate the logistics sector, remove third parties and reduce the cost of operations.
Omnichannel order fulfillment is a new reality in the logistics space. This is emerging as a key area at a time when customer expectations in the retail industry are increasing. According to Harvard Business Review, the changing customer demands drive retailers to offer more omnichannel solutions to raise customer loyalty. This goal is to provide a seamless and easy approach to shopping, no matter if it is to be done digitally or in-store. Due to the omnichannel trends, the evolution of last-mile shipping methods has raised the complexity of the supply chain.
Big data has been proven to be one of the biggest success stories of many industries, including logistics. UPS, for example, the biggest success story in the logistics sector, has succeeded in big data through its data collection, analysis, and forecasting strides, resulting in efficiencies and cost savings. With the increasing installation of sensors on trucks to measure speed, braking, location, and idling time, there is a need for a technology that collects, stores and analyzes it to offer crucial information for decision making. Such information can be useful in decision-making.
The automation market has grown significantly over the past decade. According to a 2019 report, it is expected to grow at a CAGR of 12.6% over the next five years, making it one of the key trends in the supply chain and logistics industries that must be closely followed. With automation, warehouses are cutting costs while boosting productivity and efficiency through technologies like a robotic arm, automated storage and retrieval (ASRS) and automated guided vehicles (AGVs). Amazon, for example, is a leading example of companies that have embraced automation. This will save over $18 billion in operating costs annually. Furthermore, automating transportation will reduce overall delivery costs by over 40%.