2020 Was the year when the world shut down. But did it?
The digital revolution brought the world online Because supply chain and logistics saw the most extensive boom, And consequently, ‘Your order has been placed’ became popular.
With people indoors, over the top safety protocols, minimal human interaction, and a long list of things to bring home, the logistics and supply chain management industry witnessed incredible growth.
This growth has given rise to many trends owing to technology, faster delivery requirements, AI intervention, etc.
As of 2017, the logistic industry was valued at over 8 trillion dollars – a staggering number for the world but now it is going to be double in nearly 2023. Because treating the customer like a king and providing superfast doorstep delivery has made the ecommerce logistics industry the new coveted market for venture capitalists and innovators.
Ecommerce giants like Amazon and Alibaba group are now adopting a new model of business and using artificial intelligence, blockchain and many others to face the challenges.
And with more money and emerging ideas pouring into the industry to make it a better and more profitable avenue come more rising trends. Let’s take a look at them below.
Before diving into this blog Let’s have a look at 5 Ways for SMEs to Optimize Supply Chain Logistics
10 Logistics and Supply chain management trends fueled by the digital revolution
Considering the Environment
Planet health equals our health. The logistics industry hasn’t been kind to the earth. The ecommerce logistics industry is gearing up for a renewed start, A renewed start that involves eco-friendly packing, fuel-efficient delivery, live tracking of sustainable transport methods and energy sources
The rise of ecommerce + logistics combo
Initially, the trend was for a business to make a website, list products online, and get orders; a logistics partner would take care of the product’s journey from the warehouse to the customer.
However, giants like Amazon and Alibaba have developed their logistics and supply chain management. Thereby not requiring the need to outsource their logistics. You may see the term ‘Fulfilled by Amazon’ on many Amazon product listings, which is code for Amazon being that brand logistics partner.
The Evolution of blockchain
Blockchain is like digital books of accounts, a ledger that keeps track of the cash flow and every aspect of shipping, from packaging to delivery. A technology that has worked wonders for traditional logistics suppliers like FedEx, UPS and uber freight can now plug in the gaps of tracking fraud more efficiently. This, in turn, has enhanced their efficiency and provided more transparency. Blockchain is like a digital ledger.
Logistics as a Service model/LaaS
The pandemic is that from a scale of 200 business owners, all 200 now want to be online and provide end-to-end services to get to their customers.
The digital boom also needs quick logistics. It’s costly and time-consuming for every business owner to develop logistics and supply chain management why businesses are looking to outsource.
And when it comes to outsourcing, iThinkLogistics serves as an ideal third-party logistics partner. With the power of AI-based technology, it is the go-to partner for quick delivery, tracking, problem-solving, and cost and time optimisation.
Emerging as unstoppable partners
The pandemic was proof that the world could come to a stop. But it also gave rise to a challenge. A challenge of creating a business model that could survive such an event yet again.
And the current ecommerce logistics industry is proof of the challenges being completed. The world managed to get vaccines delivered from sturdier than ever packaging to faster delivery.
The AI Takeover
Planes have auto-pilot, and cars have auto-driving modes. In ecommerce logistics, artificial intelligence has started to change the way the industry works. With end-to-end robots in charge of packaging and tracking, the industry’s productivity and pockets are enhanced.
With a workforce of AI-powered devices combined with humans, companies are likely to reduce mistakes and save costs. According to the annual industry reports, AI is used by 12% of warehouse businesses, but it is expected to reach more than 60% in the coming years.
The digital twin initiation
We live in a world where the Metaverse is on its way to becoming a whole actual world of its own, existing with our world, yet separately. What exists, in reality, can be made with accuracy in 3D. 3D models of warehouses can help plugin gaps and act as beta testing centres for future technology in shipping, fulfilment, and logistics as a category.
Every avenue for the logistics industry is a step in the right direction. Making the most of predictive logistic insights is like taking a peek into the future. Predictive insights enable one to know the most fuel-efficient mode of transport, what product will be the easiest to ship, etc.
Real-time Supply Chain Visibility
AI (Artificial Intelligence) and planning are based on predicting close to the most accurate patterns that are likely to occur. However, we live in an uncertain world where the weather and human intervention can change anything at the last minute.
With the help of Supply Chain Visibility firms that provide real-time data and tracking, even these problems can be managed well. From the traffic delay to road closures to weather changes, everything can be mapped, tracked, and alternate solutions can be provided quickly.
New entrants in the business
Even the world of ecommerce logistics and supply chain management that is already so advanced cannot escape the arrival of new technology and, more importantly, new players in the market. The aforementioned trends are proof of innovation taking this industry from being ‘product shippers’ and ‘delivery agents’ to full-fledged AI-driven end-to-end solution providers.
Therefore, the door for ‘new’ and ‘better’ is always open in an ever-growing industry.