How is technology transforming the logistics industry?

Nimish Handa, Managing Director- India, cargo-partner

The logistics industry has been at the forefront of these developments, as it is the main driver to connect producers to consumers. Over the past several years, the logistics industry has made massive progress in regard to digitalization, and the COVID-19 pandemic has further sped up this process. New tools and technologies have emerged to manage complex logistics operations, reduce order processing time, bring more transparency and visibility to the supply chain, and improve the overall consumer experience.

Customer buying behaviour has changed dramatically. While corporations are getting used to online platforms to manage their procurement, individuals also like to buy products online and expect quick deliveries, sometimes even willing to pay higher prices for express shipments. This is where logistics providers need to ensure they use the right tools and technology and be prepared to support their customers (sellers) to fulfil their delivery commitments to the end customers.

All stakeholders in the logistics industry, i.e. shipping lines, airlines, ports, terminal operators and freight forwarders, have made investments to establish EDI connections between their systems to enable real-time data transmission and automated milestone updates. All of them were willing to review their transport management systems and explore new software and digital tools providing better connectivity, faster information exchange and comprehensive process automation. Thanks to these investments, logistics service providers can now act more flexibly and benefit from readily available information to react quickly to any challenges along the supply chain.

Full and partial automation, robotics, and AI-enhanced route optimization tools can speed up transportation and improve service levels across transport modes. RFID sensors in shipping containers, GPS devices in vehicles, and traffic monitoring systems on highways provide better visibility and faster delivery options. Technology in warehouse automation has also enabled faster order processing and cut down latency and delays. Blockchain technology is now being used to simplify document interchange between shippers, consignees, freight forwarders, carriers and banks, ensuring more secure transactions and eliminating discrepancies and delays at every stage.

Data integration, security and reliability are basic expectations in the new digital world, and we are confident that the industry is able to fulfil these demands effectively. Logistics providers can now offer their customers customized reports and online access to comprehensive information, enabling them to provide a better forecast to other stakeholders in the supply chain. Shippers, carriers, suppliers, and consumers can all expect to benefit from these logistics technology trends continuing in the years to come.