The Role of Logistics Technologies: Optimising Supply Chain Processes for Success

Logistics technologies have been evolving since the primordial man invented the sack and promptly decided that carrying it on his own back is for suckers. In 2023, those technologies are going further than ever. We will discuss the changing field of logistics technologies and how they’re making our lives better.

What is logistics technology, and how does it work?

Logistics technology is anything that helps an entity transport physical items more efficiently. Granted, we’re a long past describing the wheel as the hot new thing in logistics. In 2023, it’s all about smart new technologies that help logistics companies do more with less, improving efficiency, transparency and reliability.

Or, to give some actual examples, here are some bits of exciting logistics technologies you may encounter today:

• Trucks haul a lot of freight but also produce a lot of pollution. As such, companies like Volvo are introducing electric trucks to replace the ol’ gas guzzlers.
• A client is nervous and always wants to know where their shipment is. With RFID tags embedded with the packaging and IoT sensors spread throughout the route, the location of the freight can be tracked automatically and in real time.
• A van needs to make deliveries in the city. A smart algorithm carries out route optimization to avoid potential traffic jams.

What are the main benefits of using technology in logistics?

In logistics, much like in life, technology has the potential to improve every aspect of what one does. As such, here are some of the main benefits of using new technology in logistics:

1. Increased efficiency: ever-smarter freight exchange platforms ensure that trucks never roll empty. Automated warehouse management cuts down the man hours and errors in handling freight. Artificial intelligence-driven route optimization allows freight to be delivered faster.
2. Saving money: efficient delivery planning saves on fuel costs. Electric vehicles are future-proofed against fossil fuel and related regulation disruptions. Increased automation pays back the investment in saved labour costs.
3. Improved resiliency: cloud- and fog-computing makes the data processing and information management systems much less likely to be compromised at a single point. Tracking via blockchain ensures that the data collected about the freight – from the shipper to delivery – is true and accurate. Virtual twinning allows for better predictive models that.

How does technology improve supply chain management?

Logistics get a lot more difficult if you don’t know where your stuff was, is, or has gone to. That’s why there are a few logistics technology trends that benefit supply chain management:

• Despite crypto and NFTs besmirching its name, blockchain technology can massively increase supply chain visibility. It’s a ledger that’s kept and updated in a decentralized matter. If issues are discovered with the product, the entire supply chain can be notified – and, if needs be, investigated.
• The Internet of Things isn’t just about manufacturing lightbulbs that can get hacked. It can also aid in tracking stock levels in the supply chain by embedding sensors into packaging and warehouses. And if you aren’t ready to trust an AI (or just a well-marketed algorithm), you’ll probably enjoy the way IoT technologies enable real-time data on the supply chain.
• Increased automation means that the chain becomes less susceptible to human error. Automated warehouse processes can sort freight based on embedded RFID (radio frequency identification) tags (is that IoT’s music?). Soon, it will be possible to load that freight onto drones or autonomous vehicles, both of which are famously tireless and suffer no adverse effects from working night shifts.
• Digital freight exchange platforms are operating almost on the level of SaaS (Software-as-a-Service). But instead of locking you out of your photo editing software because of some licensing conflict, freight exchanges allow a great degree of supply chain management – for carriers and shippers – without acquiring, installing and learning to use a supply management app.

What are some examples of technology used in logistics?

Boy, technology is just a big ol’ abstract word, isn’t it? So when talking about technology in logistics, it would probably be super nice to talk about some actual technology that’s already in use.

• Flexport produces transportation management systems that allow you to keep track of every step of the logistics chain efficiently. You can, among other things, track which SKU is where and potentially even sell it in transit.
• Aviant is the newest entrant in the drone delivery market. It’s banking on the Norwegian predilection to live in hard-to-reach places and plans to deliver groceries, takeaway, and non-prescription drugs to places off the beaten paths. What was previously economically infeasible for a man in a van to do, a drone can now undertake. Plus, they’re probably saving a lot on moose-bite insurance.
• 6 River Systems produces Chuck, a kind of robot tray that helps warehouse employees carry out fulfilment orders. The idea was good enough for Shopify to buy out the company for $450m in 2019. The robot optimizes the routes for workers and is easy to install into existing spaces as it relies entirely on its own sensors without the need for any sort of stickers, beacons or other brouhaha.
• EverFocus is integrating its fleet management software with its snappily-named Digital Driving Recorder with Vision Assistance System. It’s going to observe not only the truck’s surroundings to watch for dangers but will also use smart systems to identify blind spots and driver drowsiness.

How can logistics technology enhance efficiency and reduce costs?

New logistics technology is meant to make every step of the logistics process more efficient, which was a load of positive knock-on effects. Let’s name a few:

• Human employees are pretty good at the whole “identify how the box needs to be picked up” process as well as having the opposable thumbs needed to do it. However, they may not be as good when it comes to planning their routes in the warehouse. But once we machine learning on the line, we can get machines that plan the best route for them. Currently, robots can guide the employees – but soon, robots may also start doing the whole “box handling” thing as well.
• Combining AI and IoT approaches allows you to monitor your trucks in real-time, meaning that fleet maintenance can be precisely planned in advance. Not only does that lead to cost savings, but it also means fewer disruptions in the supply chain as the chance of a vehicle breaking down unexpectedly decreases.
• Now, if I were to make AI and big data kiss as if I was a Shiba Inu pushing two figurines together, I’d probably end up with a predictive model. That thing could be used to forecast upswings in demand ahead of time, which would optimize inventory (also driving down holding costs) as well as help prevent running out of stock during a period of increased demand.

What challenges can technology help overcome in the logistics industry?

The logistics industry has yet to conquer the tyranny of time and space. And while there aren’t many encouraging developments in defeating any of the laws of thermodynamics, the technology that’s already here can solve issues like:

• Human error in shipment tracking.
• Last mile delivery costs.
• Delivery-induced traffic congestion.
• Delivery-impeding traffic congestions.
• Night-time deliveries.
• Supply chain visibility.
• Maintenance issues.
• Warehouse management.
• Environmental concerns.
• Reliance on fossil fuel.
• Empty return freight.

What are the latest advancements and trends in logistics technology?

With so many potential issues to solve, logistics as a field is always on the lookout for technological advances that will increase efficiency and decrease associated costs. Here are some hot new ideas on the market:

• Autonomous vehicles: they may or may not be able to drop off that package on the porch, but they can definitely take one from a warehouse to a distribution centre. Once they become acceptably road-safe, they may take over larger and larger swathes of the fleets out there.
• 3D printing: this technology is always advancing – but what does that mean for logistics? Well, aside from printing certain goods or components on-site, thus reducing the need for shipments, they can also be used in maintenance. The more components you can print yourself, the less time is wasted waiting for the manufacturer to ship the blinker fluid or rubber nails or whatever.
• Digital twinning: digital twinning means constructing an accurate model of your systems in a virtual setting and then letting the simulation run to discover potential points of failure. This can be used for anything from planning individual delivery lines to entire warehouse plans.
• Electric vehicles: your autonomous truck isn’t doing much good if it’s rollin’ coal. But with manufacturers like Volvo coming out with EV trucks, the future seems a lot quieter and fragrant.
• Pick-robots: a robot assisting a human like a faithful shopping cart is nice. Yet, it would be nicer if it grew some hands and actually started doing some work. And they are! DHL, in partnership with the creators of our future robot overlords Boston Dynamics, have just installed their first fully-robot trailer unloading facility.

How can businesses implement and integrate technology into their logistics operations?

With multiple technologies either coming online or already here, there are multiple ways for businesses to implement them into their logistics management. How can they do it?

• Going digital: this is probably the easiest method of implementing new technologies. If what you need is a new transportation management system, you get one (though I’m sure the IT department will never agree that it’s that easy). A lot of functions these days are software-defined and, thus, don’t require much investment in hardware. Optimizing routes is probably the easiest thing you can do right now!
• Upgrading existing infrastructure: some would call this a “brownfield” project, where you have to integrate existing infrastructure into your plans. This is entirely possible – we already talked about the software solutions. They would likely work a lot better with a few more IoT sensors scattered around the place. Or, if you’re thinking fleet management, you can add sensors to your trucks to tie them into the system.
• Buying new: that would be a greenfield project! Remodel your warehouse based on a machine-learning algorithm or construct a new one. Get some new EV trucks to interface with your TSM. Employ picking robots to help your warehouse humans with the most onerous tasks. Think about drones that could visit potential far-flung clients.

What factors should be considered when selecting and adopting logistics technology solutions?

You may want to have free reign to install all the fancy logistics technology you desire. But the material conditions aren’t going to just roll over. Here are some issues to keep in mind:

• Training: any new system demands that the personnel be trained to use it. Can you spare the time and resources to carry it out?
• Scalability: how many sets of sensors for the trucks can you afford? How fast can they be put in place? How much reconstruction needs to take place? What are the lead times for the robots you want to order?
• Financing: radical change needs radical money. Can your company afford it? Can you secure funding from banks and investors? Can you even swing it past the CEO?
• Security: integrating many new technologies together always poses a network security challenge. So your IT department has to make sure that it’s sealed tight, to prevent leaks and hacks.
• Quality of data: a lot of the new logistics solutions are driven by data. But that data has to be accurate, or else it will be just a big expensive mess. So new procedures for checking that the system is being fed the right data will have to be implemented.

What is the future outlook for technology in logistics?

So, the future of logistics is bright! Just how bright? Well, it’s hard to tell, but we’ll see:

• Increasing visibility: everyone, from your employees to your clients, will be able to get more up-to-date and accurate data about what’s happening down in the supply chains. This can only lead to more trust and satisfaction.
• More automated planning: an AI can optimize routes better than a human – or at least will soon be able to do it better. It will also organize warehouses and deliveries. This will free the brainpower from the daily humdrum and leave it free to tackle extraordinary stuff.
• Increasing robotization: robots are becoming more sophisticated and cheaper. Thus, their presence in the warehouses is growing larger. The speed and accuracy of operations are thus always increasing. The floor staff will soon graduate to wrangling robots!