14 Logistics Innovations and Industry Trends in 2023

Dropoff employees measuring the growth of the logistics industry and predicting new trends.

The technology in logistics is constantly evolving, and in 2023, we can expect to see some major changes. According to Research and Markets, the market was valued at 10.32 billion USD in 2017 and is likely to increase to 12.68 billion USD by this year. 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 2023. Keep reading to learn more!

2023 Logistics Trends and Innovations

A bar graph trending upwards with a large green trend arrow.

Dropoff measures industry logistics industry trends via our customer base nationwide

Trends in logistics 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.

1. Automation

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 handle product and material storage in automated warehouses, increasing floor space usage and avoiding 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 transferring loads in the warehouse, was developed by Addverb Technologies.

2. Elastic Logistics

When demands change, companies can manage supply chain operations more efficiently with elastic logistics. 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 storage 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 the one hand, the platform allows warehouse owners to rent 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, traffic impact, a constant carbon footprint that requires human input, 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 developing light transport electric cars and micro e-mobility units. The multinational partnership with a Chinese manufacturer is expected to create up to 100,000 street scooters annually.

4. Internet of Things (IoT)

The Internet of Things (IoT) is a big deal. It helps businesses improve their supply chains. Some companies put sensors in their vehicles to track shipments. They can also help with route and location management. 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. The network provides tools for analyzing data exchanged between sensors, distributed ledgers, and databases for supply chain management.

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 vehicle’s functioning and alerts the system. The information is then reviewed, along with past data, to plan fleet maintenance. Further, it provides route optimization and delivery solutions.

5. Cloud Computing

Advanced tracking and scheduling technology for same-day delivery

Cloud computing allows businesses to scale up or down in response to market changes. It also supports the adoption of nearly any modern technology, whether firms choose Cloud-native or hybrid settings.

One of the main advantages of Cloud adoption is the option to concentrate on analytics while decentralizing data gathering and visibility.

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

Alpega, a Belgian firm, developed a logistics system for end-to-end transportation services. 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 improve their operations’ functionality, 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 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 technology trends. We all know that products are always quite different from 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 an actual product or part in the same way we would with their real counterparts for the first time.

Datumix – Equipment Condition Monitoring

Datumix, a startup based in the United States, offers a virtual 3D simulation of essential equipment. They employed machine learning to create a digital twin that can be used to track equipment performance 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 operations optimization 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.

8. Blockchain

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 shipping. 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 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 adopt 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 through a SaaS platform for the food and beverage industries. It analyses information from several 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 auto-replenishment.

10. Last-Mile Delivery Services

Businesses that track last mile delivery

Last-mile delivery services come in many forms. Adapting to care for every customer’s needs is critical to a successful 3PL service.

Last-mile delivery is when 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, 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 can reach different 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 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.

11. Robotics 

Warehouse operations have changed dramatically in recent years, and with technology becoming more integrated, this is one of the logistics innovations that will 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 a 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 temporarily store inventory and fulfill orders. This is perfect for companies that require storage but want to avoid managing 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.

13. Mergers and Acquisitions

In the logistics industry, mergers and acquisitions will continue to be common. The pandemic led to big growth for logistics companies, making them attractive to private equity firms and owners looking to sell at high valuations. However, other factors like the economy also play a role in driving M&A activity. 

A report by PwC predicts that the high level of M&A activity in the transportation and logistics sector will continue in 2023 as companies explore opportunities to gain more supply chain control. CEO of Metafora, Peter Rentschler, states that M&A activity will result in more strategic acquisitions where larger companies will acquire smaller ones. He also notes that M&A activity is the ideal time to review overall people strategy, which could include outsourcing.

14. Carrier Cycles 

Finding carriers for transportation during the pandemic was challenging. However, carrier availability is slowly returning to normal as the pandemic subsides. Shippers and brokers get to be more selective in choosing carriers. 

The rise of new and small carriers during the pandemic, which shippers were forced to use regardless of quality, is expected to decrease. According to Brandon Bay, VP of Corporate Strategy and Marketing for Logistics Group International, the logistics industry is volatile, so it’s essential to have reliable vendors to maintain consistency.

A Closer Look at Dropoff

The Ultimate Guide to Last-Mile Delivery Tracking

Dropoff helps businesses nationwide achieve their logistics goals and see how it works.

As mentioned above, last-mile delivery is one of the most popular logistics trends, and that is precisely 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 choosing a third-party logistics provider.

How Dropoff Can Help You Keep Up with Logistics Industry Trends 

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 latest 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.

FAQs on 2023 Logistics Trends and Innovations

Let’s take a deeper look at some of the most common questions we get.

What Are Logistics Industry Trends?

Logistics industry trends refer to new technology, new services, new processes, and new ideas, which are used for improving logistics operations.

What Is a Logistics Company?

A logistics company helps other companies transfer items from ‘Point A’ to ‘Point B.’ It could be anything, including items, services, or data.

What Is the Logistics Industry?

The logistics industry ensures that materials and products are obtained, produced, and distributed to the right location and in the appropriate amount.

How Is Technology Changing the Transportation and Logistics Trends 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.

What are the new trends in logistics in 2023?

Companies are turning to robotics to handle labor shortages, supply chain disruptions, and increased demand. The development of smart logistics solutions that use the internet of things and advanced robotics is becoming essential in future supply chain planning.

What are the supply chain concerns for 2023?

In 2023, the main issues facing supply chains will be a lack of raw materials in the U.S., a decrease in new home construction, and disruptions to public transportation due to driver shortages.

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