Technology Trends Reshaping the Logistics Industry

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Industrialization 4.0 changed the way businesses operate. Warding off the silos created by the legacy infrastructure, the wave of digital transformation welcomed a whole new era of automation and interconnectivity. Nearly every industry has been hit by the change and the logistics sector remains no exception.

While a few believe that the industry took too much time to jump onto the bandwagon, now that it has taken the step, there\’s no going back. In fact, the change brought by the adoption of technology in logistics has been groundbreaking. From packaging to heavy lifting, shipment labeling, and last-mile delivery, the next-gen technology has taken over the entire industry and only for the good.

From what it appears, it\’s time to embrace the era of a smarter and a self-driven logistics business. In case, you are skeptical about how technology transforms the supply chain and logistics space, this article will answer all your questions.

But before that, let\’s walk down the statistics and factual figures opining the impact laid by technology in the logistics sector.

Facts & Statistics:

  • 90% of the organizations that take help from third-party organizations agree that data-driven decisions are beneficial in the long run.
  • Nearly ⅔rd of the organizations believe that the adoption of technology in the supply chain and logistics would increase their end to end productivity.
  • 53% of the organizations said that smarter logistics would enhance the customer experience, contributing to better ROI and growth.

It is clear that the adoption of technology in supply chain operations has promising results. It is only a matter of time when all of the processes would work in automation, increasing efficiency, and reducing the cost of operation.

Taking this discussion forward, we now see the different technologies that aim at disrupting the supply chain and logistics industry.

Three Technologies Reshaping the Supply Chain and Logistics Industry

  • Internet of Things for Real-time Tracking

It is expected that the economic impact of IoT on the supply chain and logistics to be around $1.9 trillion in a five-year span. While some call it the technology of interconnectedness, the supply chain experts name it as the telematics of transportation.

In simple terms, IoT bridges the gap between the physical and the digital world. Irrespective of whether it is the hardware stored in the warehouse or a vehicle in the transit, IoT devices can easily track them, providing the whereabouts of each in real-time. Additionally, IoT solutions equip the industry with tons of data that can further be leveraged to make smarter decisions.

One of the fascinating implementations of IoT in the logistics industry is the warehouse management system. Unlike the traditional processes, IoT paves way for a smarter warehouse where goods are monitored on a regular basis, and order processing is automated to keep the system running without human intervention. Such a system enhances accuracy by 95%.

  • Artificial Intelligence for Accurate Prediction

Do you know that AI can increase productivity by 20% while reducing the cost of operation by 10%?

Artificial intelligence is the form of technology that facilitates smarter decision-making. Besides embedding automation in the end to end trucking and loading of goods, AI accounts for intelligent forecasts. Be it the bad weather or a traffic influx, IoT sensors capture data that is then transmitted to AI-algorithms.

These studies and analyze data to make decisions in real-time. What\’s more intriguing is the ability to take past data into reference and make predictions. A study suggests that AI-based algorithms make predictions that are 6.4% more accurate as compared to the traditional form of forecasting.

In addition to the above, AI algorithms are integrated within the delivery modules so as to determine the best and the most optimal route for transportation and delivery. Such optimization reduces the cost of delivery, carbon emissions, and fuel consumption. All in all, AI help deliver better and faster.

  • Robotics for Smart Warehouse Management

Warehouse robots are the new normal. Owing to the ongoing pandemic crisis, nearly every activity has been put to stop for an indefinite period. Though following the stay-at-home orders help deal with the virus, business activities need to be restored to keep operations afloat.

It is pretty obvious that industries are short on labour and nothing seems ideal than automated robots.

From picking up products to handling and placing them in the right place, warehouse robots are in trend. Not only are these efficient but occupies less space and reduces the possibility of errors. Multiple organizations have already adopted the solution. Where a few employ bots for selective purposes, some have gone beyond the scope to hand over all of the picking, sorting, and delivery tasks onto the robots


It would not be wrong to state that technology has the potential to make or break a particular industry. The outcome depends upon how effectively can an organization understand, utilize, and implement technologies. With respect to the supply chain and logistics industry, there lies huge potential for growth.

However, it is important for the leaders to plan and assess their infrastructure and then embed solutions that work best for them. Remember, there isn\’t a one-size-fits-all solution and would vary from organization to organization.

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