While technology is consolidating its hold over every major sector in the world, supply chain and eCommerce logistics, being the most crucial part of the import-export business, have also witnessed the digital transformation. Innovating technologies like artificial intelligence, neural networks, and machine learning have significantly changed logistics over the past ten years. It’s a revolution in the business motivated by consumer demands for faster delivery, more affordable goods, and better corporate environmental practices.
As per a recent Gartner survey, 75% of major corporations will utilise intralogistics smart robots in some capacity in their warehouse operations by 2026. By the same year, embedded advanced analytics (AA), artificial intelligence (AI), and data science will be offered by more than 75% of commercial supply chain management application suppliers. By 2025, intelligent edge ecosystems will be used to make 25% of supply chain decisions.
The successful implementation of supply chain digital transformation demands a strong alignment between business and supply chain strategies. This transformation has been shown to promote growth, reduce risk, and optimise costs.
Impact of Digitalisation on The Supply Chain and Logistics Industry
Digitalisation is transforming logistics and supply chains in a variety of ways. One of the most important changes is the way information is managed. In the past, logistics and supply chain management were largely paper-based. This meant that information was often restricted, with different parts of the supply chain relying on different systems and data sets. This made it difficult to get a holistic view of the supply chain and make informed decisions.
By digitising information, logistics and supply chain managers can now get a real-time view of all aspects of their operations. This allows them to make more informed decisions about where to allocate resources, how to optimize processes, and how to respond to problems.
Digitalisation is also changing the way logistics and supply chains are physically managed. Previously, most of the logistics and supply chain management were done manually. This meant that a lot of time and effort was spent on tasks like managing inventory, tracking shipments, and coordinating resources. Now, the automated tracking software platform provided by 3PL providers has enabled real-time tracking in logistics and shipping.
With digitalization, many of these tasks can now be automated. This saves time and money and allows logistics and supply chain managers to focus on more strategic tasks.
Top 10 Digital Ecosystem Trends to Watch Out For in Supply Chain and Logistics
Invasion of eCommerce giants into Digital logistics
The digital titans are here to stay, just like in other sectors. Examples of companies creating a worldwide logistics network are Amazon and Alibaba. FedEx, UPS, and USPS are expected to experience significant commercial losses if Amazon Logistics’ parcel volume approaches 6.5 billion parcels in 2022.
The Last Mile Delivery Firms
For significant cost and time savings in the supply chain, logistics companies are preparing to use robotics, drones, and artificial intelligence in warehousing. From 2022 to 2031, the first and last-mile delivery industry is expected to grow at a CAGR of 6.12%.
Uninterrupted Supply Chains
Businesses now try to develop systems that can handle difficulties on the fronts of labour, asset monitoring, security, cost, and productivity issues, as a result of the pandemic’s profound effects on logistics and supply chains.
Environmental Consciousness in Logistics
Since tracing carbon footprints and climate neutrality are now more significant than ever, international courier service provider companies are focusing more on the environmental obligations of logistics sector. The use of recyclable IT equipment is a wonderful place to start. The industry will now drift towards sustainable business practices.
Blockchain-powered logistics digital ecosystems
Developing new ecosystems that largely address the previously stated problems would seem to be a logical response for an industry suffering from problems with transparency, accuracy, tracking, peer-to-peer data integration, fraud detection, and contract management. The Blockchain in Transport Alliance (BiTA) is a model initiative that enables logistics powerhouses FedEx, UPS, and Uber Freight to develop guidelines, strategies, and even solutions to exploit the advantages of blockchain ledger technologies.
Logistics-tech startups are starting to disrupt the market with Logistics-as-a-Service (LaaS). The companies Just-in-time and BluJay Solutions are excellent examples of LaaS providers that enable businesses to swiftly acquire cutting-edge logistics skills as opposed to developing them themselves. The move to LaaS can be ascribed to the demand for a better customer experience, as well as the associated costs and technical skills.
Moving Closer to Edge Computing
The army of Internet of Things(IoT) devices that are generating unprecedented amounts of data and necessitating the need to make choices in near-real time has empowered supply chains today. Thus, edge computing is the only remedy.
The Logistic Digital Twins
When it comes to experiencing the physical world up close, its digital twin is the only option because it offers fresh perspectives, simulations, and real-time tracking. It also captures the relevant supply chain data using IoT sensors and other technologies.
Drones, virtual assistants, self-driving cars, and warehouse management are all powered by AI, which is responsible for significant advances in logistics. It will undoubtedly alter everything. According to IDC’s survey, almost 25% of G2000 companies want to incorporate one AI/intelligence feature into their products.
Predictive Logistics Perspectives
It is simple to conclude that data is the competitive differentiator given that 93% of shippers and 98% of third-party logistics companies believe that data-driven decision-making is essential to supply chain activities and that 63% of the largest and most influential logistics organisations believe that investing in data analytics is the best way to organise newly digitised fleets.
With several technological advancements in eCommerce logistics and supply chains, the upcoming and existing logistics service providers will have to re-strategies their business operations, in order to adapt to constantly changing digital trends. NimbusPost, a shipping aggregator is leading from the front in the Indian logistics industry by providing highly integrated logistics and warehouse solutions for eCommerce businesses. Its advanced features like AI-enabled fraud detection, one-click API integration, real-time shipment tracking, etc. make it the perfect logistics partner for any online merchant.