The logistics sector is intertwined with digitalization and technology throughout the entire business process. Logistics companies that aim to be customer-oriented adopt all innovations and include them in their business plans. To keep productivity and efficiency sustainable, they follow logistics trends.
Are you wondering which of the trends and initiatives that have entered our lives with the increasing speed of technology will soon affect your business? In this article, we will examine the top 10 logistics industry trends in 2021.
1. Internet of Things (IoT)
IoT, known as the Internet of Things, means that every object (mobile phones, computers, robots, household items, etc.) connects to the internet and establishes a connection with other devices. Thanks to this connection, IoT devices can communicate with people and provide information about any desired situation.
The logistics sector leads other sectors in the use of IoT. Logistics companies that provide air, road, sea, and rail transportation services have very large networks. Companies spread across such a wide area need very fast access to data flow in their business processes. They meet this need through IoT. Providing inventory management at every stage of the supply chain also increases efficiency.
It provides great convenience to the sector by enabling instant visibility, traceability, and fleet management of transported goods.
Fuel consumption, waste, and time data that can be reported using IoT accelerate companies' decision-making processes and enable them to take quick solutions. In addition, one of the most important elements for logistics companies is the sensors installed in vehicles, which allow speed performance to be monitored. IoT systems that work on the principle of sending alerts through sensors make it easier for companies to analyze their performance.
2. Artificial Intelligence
Artificial intelligence has become integrated into many areas of our daily lives. Artificial intelligence consists of systems that can think like humans, imitate behavior, and automate tasks. It can also perform data-based activities better than humans. The most important reason it has become so widespread is that it significantly reduces the error rate.
Artificial intelligence-based prediction solutions (price-demand) enable managers to plan their business processes in logistics operations. It plays a role in reducing operating costs and optimizing processes.
Factors that speed up and facilitate processes in logistics management
Self-driving robots based on artificial intelligence:
• Smart road technologies
• Cognitive automation technology
• Bots used in management tasks
• Supporting fleets by predicting conditions such as weather
• Traffic through machine learning
3. Robotics
Next-generation robotic technologies increase the speed of supply chain processes and minimize the error rate. Robots have longer operating hours compared to humans. They work in cooperation with human employees to increase efficiency. They are used in warehouses and storage facilities to pick, place, package, and transport goods. Software robots perform ordinary tasks such as repetitive invoice processing and entering a purchase order, saving time for human workers.
Software developed for warehouse management to shift to robots enables supply chain management to emerge quickly and logistics activities to be carried out rapidly.
4. Last Mile Delivery
Last Mile Logistics is the final step in the delivery journey of a product from the warehouse shelf to the customer's door. It accounts for a large portion of total cost and time loss. This step, which is directly related to customer satisfaction, is the most important part of logistics. At the same time, it faces various problems caused by factors such as traffic congestion, sender-recipient errors, and delivery density. The spread of deliveries made with robots, drones, driverless vehicles, and smart lockers will be a major lifesaver for the logistics sector.
Drone
Especially for international logistics companies operating in global logistics, the delivery of products by unmanned aerial vehicles provides great convenience by solving the traffic congestion problem and reducing delivery time and cost.
Smart Lockers
By providing recipients with the option to pick up packages, savings are made on courier costs. In addition, the problem of deliveries being returned because the recipient could not be found is eliminated.
5. Warehouse Automation
Warehouse automation increases efficiency, speed, and productivity by minimizing human error. Automated guided vehicles minimize error rates through picking and placing technologies such as robotic picking, automated storage, and retrieval.
Automated Guided Vehicles
It provides automation in the transport of high-density goods. It replaces human labor to eliminate the difficulties in transporting high-volume goods.
Automated Storage and Retrieval System
Automated warehouses carry out product and material storage management without requiring labor. In this way, it reduces costs and increases safety by minimizing possible errors through automation.
6. Blockchain
Blockchain provides a high level of trust by preventing interference with stored information and making it impossible for someone else to change it.
The logistics sector carries out integrated work with manufacturers, customers, suppliers, auditors, and many other units. Blockchain provides benefits for logistics and all parties in the chain.
For customers, it allows them to track their products and the production chain through the cargo tracking system. Auditors can control any process remotely. Blockchain also keeps information about estimated delivery times up to date, maintaining transparency and trust by ensuring that documents are kept under control.
7. Big Data and Data Analytics
Data analytics works to improve productivity, performance management, and the optimal use of logistics resources. It supports further optimization of market data analysis, supplier pricing, inventory levels, and risk management reports.
With the information obtained through data analytics, logistics companies can:
• Increase their operational efficiency,
• Optimize routes and delivery planning by using data obtained from location and weather analysis,
• Optimize fuel costs by analyzing past travel data and predicting fuel consumption,
• Predict deviations in demand and make decisions using data from sources to forecast future sales.
8. Cloud Computing
In the logistics sector, where many processes such as transportation, storage, distribution, and finance are managed simultaneously, cloud computing makes control easier. It provides more storage space and fast data transfer.
The servers where the data of companies providing cloud software services are stored receive 24/7 software security measures. It provides the most secure support.
9. Autonomous Vehicles
Autonomous vehicles increase vehicle safety by reducing driver errors to zero during driving without human intervention. They deliver goods both accurately and safely. They increase efficiency in deliveries designed to operate full-time. Autonomous vehicles improve fuel efficiency. They reduce traffic congestion by optimizing travel routes. Thanks to artificial intelligence, they map the environment, control vehicles, and direct them to the correct cargo compartment.
10. Elastic Logistics
Flexible logistics enables companies to carry out supply chain operations more efficiently during periods of fluctuating demand. Depending on market demand, it organizes and plans supply chain operations.
Elastic logistics operates on a pay-per-use and on-demand service principle for its customers.
