The technology in logistics is constantly evolving, and in 2022, we can expect to see some major changes. The market was valued at 10.32 billion USD in 2017, and it is expected to increase to 12.68 billion USD by 2023, according to Research and Markets. From new logistics innovations to changing consumer behavior, the landscape will be very different than it is today.
In this article, we will discuss some of the most important trends that will impact the future of logistics in 2022. Keep reading to learn more!
Logistics Innovations and Industry Trends
Logistics innovations will always be linked to social and business developments, as well as technology improvements. Companies want to automate as much as possible and make their procedures more sustainable. While the logistics industry has faced its drawbacks, these innovations are here to improve overall operations. Here is a list of logistics trends and innovations you can expect to advance this year.
By automating tasks, in-house operations will save manual labor and lower logistics costs. It allows more time for your logistics team to find ways to optimize workflows using automation instead. The presence of a logistics processor would still assist operations greatly but automation aims to reduce their work.
Automation is a collection of technologies designed to improve efficiency. Its main purpose is to reduce human input while creating a seamless transition across several areas: sales, suppliers, planning, procurement, and distribution.
Exotec – Automated Storage & Retrieval System
ASRS helps in the handling of product and material storage in automated warehouses, which increases floor space usage and avoids the need for manual labor. This lowers costs and improves safety.
As a result, Exotec created the Skypod, an automated robot that helps eCommerce warehouses run more efficiently. The technology improves storage capacity by using vertical storage solutions to raise warehouse ceilings by up to ten meters.
Addverb Technologies – Automated Guided Vehicles
AGVs assist in the automation of product movement. When processing products, AGVs can take the place of manual labor. Dynamo, an AGV for the transfer of loads in the warehouse, was developed by Addverb Technologies.
2. Elastic Logistics
Companies can manage supply chain operations more efficiently with elastic logistics when demands begin to change. Supply chain operations can be scaled up or down as needed. Issues that supply chain firms face are also addressed, such as warehousing limits and overstocking.
Shorages – On-Demand Warehousing
Shorages is a storing marketplace based in the United Arab Emirates that caters to small and medium businesses. This company works with businesses to discover short-term warehousing needs from a large network.
On one hand, the platform allows warehouse owners to rent out empty space to suit short-term demands. They also offer customers pay-per-use and on-demand storage and fulfillment services.
3. Green Logistics
Sustainability is a movement that has spread across many industries, including logistics. Nowadays, more and more companies are using a variety of technologies to reduce their negative environmental impact.
High reliance on fossil fuels, the impact of traffic, carbon footprint that require human input constantly, and much more are among the key drivers of this trend.
Amazon – Climate Pledge
Amazon just announced its “Climate Pledge” to meet eco-friendly objectives. By doing so, the company intends to push other companies to join in their efforts to become carbon-neutral by 2040 and support renewable energy. Amazon has signed a deal with Rivian, an electric vehicle company, to supply 100,000 electric vans.
DHL – Electric Vehicles
The world’s largest courier company, Deutsche Post, has also dedicated $552 million to the development of light transport electric cars and micro e-mobility units. The multinational partnership with a Chinese manufacturer is expected to result in the creation of up to 100,000 street scooters annually.
4. Internet of Things (IoT)
The Internet of Things (IoT) is a big deal in the digital world. It helps businesses improve the quality of their supply chains. Some businesses put sensors in their vehicles to track shipments in real-time. They can also help with route and location management. Moreover, IoT solutions in warehouses can help with inventory management, storage conditions, and preventative maintenance.
Ambrosus – Real-Time Supply Chain Visibility
Ambrosus created an IoT network for the food and pharmaceutical supply chains. For supply chain management, the network provides tools for analyzing data exchanged between sensors, distributed ledgers, and databases.
Fleetroot – Fleet Management
Companies can use Fleetroot’s IoT platform to manage their fleets. Using sensors and devices implanted in the vehicle, the platform helps monitor the functioning of the vehicle and gives alerts to the system. The information is then reviewed, along with past data, in order to plan fleet maintenance. Further, it provides route optimization and delivery solutions.
5. Cloud Computing
Cloud computing allows businesses to scale up or down in response to market changes. It also acts as a backbone for the adoption of nearly any modern technology, whether firms choose Cloud-native or hybrid settings.
The option to concentrate on analytics while decentralizing data gathering and visibility is one of the main advantages of Cloud adoption.
Linker – Cloud Platform
Linker built a platform that offers third-party logistics services to eCommerce firms. The platform provides tools to improve product labeling and delivery services. Linker also offers logistics technologies for warehouses and delivery centers. Further, it is based on a pay-per-use basis.
Alpega – Cloud TMS
A logistics system for end-to-end transportation services was developed by Alpega, a Belgian firm. It allows manufacturers and logistics providers to communicate in real-time. It also improves logistical processes by combining transportation requests into a single system. Furthermore, the software includes tracking through a mobile application.
6. Artificial Intelligence
Artificial Intelligence (AI) is gaining attention in the industry thanks to rapid advances in machine learning, computer power, and big data analytics. When used correctly, it can help businesses in improving the functionality of their operations, spot potential problems, and suggest fixes.
The introduction of Cloud technologies and the rise of computer capacity have boosted industrial acceptance of machine learning. According to a McKinsey report, over 20% of businesses already have some type of machine learning embedded in their systems.
Adiona – Process Optimization
Adiona is an Australian firm that has created AI-based Optimization Software-as-a-Service (OSaaS) that helps businesses improve their logistic processes while cutting costs. Using machine learning, the system helps predict factors such as demand, weather, and traffic. Overall, the approach reduces the number of people needed for manual input.
Insite – Demand Forecasting
Insite mainly serves retail industries with AI-based software solutions for pricing prediction and process optimization. The program includes modules for risk assessment and demand forecasting.
The platform includes tools for collecting and combining real-time process data. As a result, when it comes to product restocking, managers are well prepared to support relevant insights.
7. Digital Twins
This is one of the most promising logistics innovations. We all know that products are never quite the same as how we see them online. Modeling often ignores how parts wear out and need to be replaced.
Digital twins technology is finally changing this.
Now, the physical and digital worlds can be merged into one, allowing us to interact with the digital model of a real product or part in the same way that we would with their actual counterparts for the first time.
Datumix – Equipment Condition Monitoring
Datumix, a startup based in the United States, offers a virtual 3D simulation of the essential equipment. They employed machine learning to create a digital twin that can be used to track the performance of equipment in real-time before installing the algorithm. The data from the 3D model, paired with artificial intelligence (AI), is then used for equipment maintenance.
Cognition Factory – Warehouse Simulation
Companies can use digital twins to test out new systems and promote optimization of operations before making the actual change.
CognitiveFlow, an AI-based digital twin solution for warehouse simulation, is offered by Cognition Factory, a German business. The software is used in the warehouse to plan, design, and manage mobile robots and material handling systems. This system includes data from both on-site and off-site sources.
The Blockchain platform can be used as a digital ledger. This method would allow multiple networks to share important data without the danger of it being leaked or corrupted. Companies must, however, collect and organize their data well.
In addition, companies will need to develop an ecosystem of supply chain partners who can use the blockchain environment once the industry establishes new standards.
ShipChain – Freight Tracking
ShipChain is a logistics technology that uses blockchain to help with the entire shipping process. The technology allows you to track shipments in real-time. The software also updates information about predicted delivery times. Once the delivery is complete, the site uploads proof and documentation, boosting the level of transparency of products in transit.
Steamchain – Smart Contracts
With its World Trade Logistics (WTL) smart contract system, Steamchain provides a blockchain platform that simplifies payment methods. By providing a permanent record of all transactions, WTL smart contracts allow B2B payments and prevent fraud. They also help to reduce currency fluctuation costs and avoid currency conversion costs.
9. Advanced Data & Analytics
Logistics businesses collect a lot of data. Companies that want to survive must adapt good data management practices. DCSA has paved the way for industry-wide improvement by introducing new data standards for container shipping and its Industry Blueprint. More and more businesses are opting to filter their data and turn it into advanced stats.
FACTIC – Prescriptive Analytics
FACTIC, a company based in the United States, delivers predictive analytics solutions for the food and beverage industries through a SaaS platform. It analyses information from several different sources using data mining and AI methods to predict future sales.
To automate purchases, the platform predicts demand changes and makes data-driven decisions. The platform also includes options for managing stock levels through the use of auto-replenishment.
10. Last-Mile Delivery Services
Last-mile delivery is the stage where a carrier picks up items from a warehouse and delivers them to the final destination — as quickly and efficiently as possible. When delivering high-value cargo, be sure to partner with the best last-mile delivery companies and startups in the US.
Due to the standards set by companies like Dropoff, faster shipping is no more a thing of the past, but something that your customers expect. It’s vital to make sure your company’s delivery system is competent if you want to maintain customer loyalty. The sooner a customer receives their item, the happier they are. To learn more, here are 11 logistics KPIs to track in same-day delivery.
Manna – Drones
Drone delivery solves the problem of last-mile traffic jams. Why? Because they have the ability to reach further locations, cutting delivery time and cost. Irish company Manna provides drone delivery as a service to franchises. Manna’s drones can fly at an altitude of 80 meters and at a speed of 80 kilometers per hour.
Pakpobox – Smart Lockers
Smart lockers give customers more options for receiving packages and reduce the number of returned deliveries due to customer absence. Pakpobox offers a variety of smart locker setups that are customizable. These smart lockers provide parcel security by also sheltering them from bad weather.
Warehouse operations have certainly changed dramatically in recent years, and with technology becoming more integrated, this is one of the logistics innovations that will definitely continue. Warehouse robots are one of the most prominent developments.
Handle – Robotics
Handle has created an autonomous robot with a tiny footprint, extended reach, and vision system that allows it to unload trucks, construct pallets, and transport boxes across any warehouse.
12. On-Demand Warehousing
On-demand warehousing links online retailers with warehouses that have extra space and need to store inventory and fulfill orders on a temporary basis. This is perfect for companies that require storage but do not want to manage a warehouse. It’s also a low-cost and adaptable option.
Flowspace is a logistics startup that offers businesses on-demand warehousing and fulfillment services. On a month-to-month basis, the corporation manages inventory storage, transportation, and services. Customers can receive access to hundreds of warehouses strategically spread around the United States by using their simple online cloud platform.
A Closer Look at Dropoff
As mentioned above, last-mile delivery is one of the most popular logistics innovations at the moment – and that is exactly what we provide. At Dropoff, we offer same-day delivery services for custom logistics. We know that each industry has different requirements and we can tailor courier services to match your industry’s demands. Wondering what’s so special about same-day delivery? Click here to learn more.
All you have to do is simply schedule a delivery. You can rest easy knowing your deliveries are in good hands, where you can access real-time tracking and excellent customer service. We are constantly evolving with the industry changes to accommodate the logistics needs of our customers. Furthermore, we have our customers’ best interests in mind when it comes to choosing the third-party logistics provider for them.
You can worry less about investing in the newest technology in logistics to stay competitive by working with us. We stay on top of the newest supply chain trends and will continue to invest in cutting-edge technology to provide the best for our customers.
Contact us today and we’ll work with you to develop a unique solution for your company’s requirements.
What Is Logistics Innovation?
Logistics innovation refers to the new technology, new services, new processes, and new ideas, which are used for improving logistics operations.
What Is a Logistics Company?
Basically, a logistics company helps other companies transfer items from ‘Point A’ to ‘Point B.’ It could be anything, including items, services, or data.
How Is Technology Changing the Transportation and Logistics Innovations Industry?
Technology is transforming the way the world does business. We’ve used to having everything online and at our fingertips for instant access. Depending on where you reside, you can receive a box less than an hour after buying with Dropoff, a popular fast-paced delivery service.
Improved technology has also enhanced logistics innovations, and supply chain productivity, lowering costs and reducing errors. All aspects of the logistics sector benefit from these improvements, including trucking transportation, international transportation, supply chain management, and shipment monitoring.