Understanding the challenges and opportunities in the logistics industry
There are many challenges involved in transportation and logistics, including complex operations and payment systems. This is because the industry is highly fragmented. The key to successful logistics management is proper organization and communication between all parties involved, including logistics owners, fleet managers and truck drivers. Interestingly, the current trends in logistics and supply chain management are streamlining the logistics ecosystem for greater efficiency, cost-effectiveness and a competitive advantage.
How logistics technology is changing the future of supply chains
The most efficient way to handle challenges in logistics is with the integration of technological solutions. Logistics technological trends have been on a constant rise in recent years. The 2017 survey conducted by GEODIS, a leading logistics firm reveals that the technologies that are becoming a priority in the supply chain industry include data analysis (41%), IoT (39%), cloud computing (39%), and info security (31%). Moreover, a study conducted by Forbes in 2018 states that 50% of companies believe technological advancements have a strong impact on the supply chain, logistics, and transportation operations.
The 5 most important global logistics technology trends of 2023
- Automation: Automation is considerably one of the major logistics technology trends.By integrating AI, machine learning, and IoT into logistics processes, supply chains can become more efficient and have a competitive edge. The integration of automation in logistics involves streamlining administrative processes, data analysis and remote transportation management.
- Digitalisation: The logistics industry involves a ton of paperwork and manual processes which makes operations and payments complicated as well as time-consuming. According to a survey, “46% of supply chain professionals still rely on excel spreadsheets for their operations (BCI, 2017)”. Therefore, digitalisation of the processes helps to improve the efficiency of operations as well as reduce errors and save time. This is made possible with tech solutions like transportation management systems for real-time visibility.
- Analytics: In a highly fragmented and unpredictable industry like logistics, it is important to analyse the evolving demands and metrics in order to ensure efficient operations and customer satisfaction. According to a study by the Council of Supply Chain Management Professionals, a majority of third-party logistics firms 71% percent believe that using big data improves quality and performance.
- Sustainability: The transportation industry impacts the environment in a drastic manner in terms of carbon footprint and pollution. Therefore, the logistics industry is shifting to a sustainable process in terms of reducing carbon emissions with decrease in empty miles and fuel consumption through telematics and transportation solutions backed by technology. This has emerged as one of the major trends in transportation and logistics.
- Unification: Logistics is a highly fragmented industry and involves a lot of people including logistics owners, fleet managers, truck drivers, shippers, carriers, third-party logistics firms and customers. Therefore, the logistics industry requires a unified platform to streamline operations and payments for greater efficiency and cost-reduction.
Why do you need to adopt a Unified Logistics Platform?
The logistics and transportation industry is immensely fragmented, which creates numerous challenges when it comes to managing supply chains. A collaborative and comprehensive platform is key to overcoming these obstacles. When you have all of your transport solutions in one logistics management platform, you will save time and money while being more efficient. The current trend for a unified logistics management platform is of prime importance.
Let’s Wrap Up!
The logistics industry has its own set of challenges and opportunities. The integration of technology in logistics has paved the way for better management, operational efficiency and payment systems in an attempt to save time and money. According to the global trends in logistics in 2023, the logistics industry will seek to expand in areas involving automation, digitalisation, analytics, sustainability and unification. Comparatively, a unified logistics platform will be the prime area of focus to unify operations and management.
Axlerate is a unified platform for Logistics and transport management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.