Marie Barnes, Author at Global Trade Magazine

The fields of logistics, manufacturing, transportation, and supply chains are experiencing a rapid and unprecedented transformation today. The future development of these industries lies in innovation and technology improvement. Recently, 3D printing, the Internet of Things, drone delivery, and other modernizations that have become almost a reality, previously, have been the subject of science fiction. So, let us consider the most prominent implementations to high-performing logistics.

3D printing

“The concept of 3D printing itself has existed since the 1980s. However, only now this technology has become available on a relatively large-scale market. This revolutionary advancement allows almost any company to create devices or their parts from metals, plastics, mixed materials, and even from human fabrics without special expenses” – according to Noah Miller, CEO of PhotoRetouchingServices.NET who plan to provide a new 3D printing service in 2021.

How can this affect logistics and supply chain management?

1. 3D printing significantly expands the production process

2. Increases independence from specialized industries and enterprises

3. Reduces delivery times, eliminating the need to store a large number of finished products in warehouses

The use of 3D printing will lead to drastic changes in the logistics field. Companies will supply raw materials instead of many finished products. Therefore, they will be able to provide 3D printing services at delivery points, which will be an additional source of income.

Smart systems and the Internet of Things

By the end of 2020, the number of connected devices is expected to surpass 50 billion. A world of coupled things is a treasure trove of opportunities for all sectors of the economy, including the trucking industry. Smart devices, connected in one information space, can store important data. For example, technical requirements, customer names, and shipping addresses.

Smart pallets and long-distance containers will make it much easier to track or locate goods in transit. Such systems will not only make it easier for warehouse employees to find, distribute, and dispatch orders, but also help manufacturers to perform maintenance and processing of goods at the end of the expiry date with higher efficiency. Over time, most logistics processes can become semi-automatic.

Tracking shipments in transit with network-connected devices will remove shipping worries. Moreover, in this way, it will be possible to check if the vehicles are in need of repair and receive information about the mishandling of some goods.

At the moment, tracking goods and services on the road is one of the major problems of logistic services. The use of the Internet of Things, along with the use of cloud GPS-systems, will allow you to track individual consignments easily. 50% of logistics service providers are already using cloud services, while 20% are planning to do so.

As data moves to the cloud, logistics services become available through pay-on-demand. This means that small businesses no longer have to spend money on complex IT solutions. They only pay for what they need.

In its turn, the Internet of Things is based on the use of radio frequency identification (RFID) chips, which communicate with each other. Chips attached to the individual elements of the consignment transmit data such as:

-product identification

-location

-temperature

-pressure and humidity

Once there is a notification of any negative action, it will be a trigger to promptly prevent any possible damage or theft. The chip can signal the onset of adverse weather conditions, such as high temperature or humidity. It can also transmit road condition data and info related to specific parameters, such as average speed and traffic patterns, or return information.

Supply and transportation chain management is a relevant issue for logistics managers and directors. Therefore, logistics companies will benefit greatly from using this technology. Also, they will be able to get an increased number of satisfied customers.

Drone delivery

A drone is an unmanned aerial vehicle. It can be either controlled remotely or fly autonomously, using programmed flight routes arranged in its system. Drones are small, light, and quite cheap to operate. They manage to fly where other means of transport fail to perform.

In the near future, operators will use drones to promptly deliver small packages in both cities and remote areas. Due to their high speed and accuracy, it is possible to reduce the supply chain and significantly decrease transportation expenses. As a result, courier companies may incur financial losses. There are certain obstacles that hinder the widespread use of this technology: the issue of government regulation, air traffic safety, the permitted size and weight of the drone.

e-AWB

The Electronic Air Waybill, e-AWB, is the first step towards digitalizing the industry. It is a standardized electronic version of the existing paper air waybill that accompanies cargo from shipper to delivery. E-AWB improves the efficiency of tracking and processing cargo data, as well as the transparency and safety of the route.

In addition, it reduces expenses and delays. The International Air Transport Association, IATA, announced the transition to e-AWB in early 2019. Major airlines such as Lufthansa and Emirates, have already implemented the electronic air waybill. Delta Airlines and United Airlines are likely to follow suit soon. Thus, by the end of 2020, 80% of air waybills will be electronic.

Blockchain

Since its advent in 2008, blockchain has never fallen off the radar in any industry. Unfortunately, the complex concept is difficult for many logisticians to understand. Despite its great potential, it has hardly evolved.

In addition, many logisticians are tired of the very frequent use of this term. As you know, blockchain is an open ledger of transactions distributed among computers on the network. Since everyone in the common blockchain has access to the same ledger of transactions, there is complete transparency that makes it impossible for users to hack the system. Thus, it eliminates the need for third parties.

In the logistics industry, blockchain can make it easier to exchange sensitive data for different carriers or shippers. Also, companies are able to create trade finance and supply chain finance solutions.

Digital twins

Digital twins, electronic copies of a physical object or process, are one of the most exciting trends in logistics technology to follow in 2020. Many logisticians know that products will never be the same as their computer models. However, the technology of digital twins changes it. Now, the physical and digital worlds can be combined into one, which allows us to interact with an e-model of an object or its part in the same way as with their physical counterparts.

The potential for using digital twins in logistics is enormous. In the transportation sector, this novelty can be used to collect products and packaging data. In this way, it uses the information to identify potential blind spots and recurring trends to improve future operations.

Web technologies, programs and transport management systems do not stop evolving. Currently, the logistics industry is experiencing yet another revolution. The latest technologies are mostly related to speed, accuracy, security, and continuous delivery.

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Marie Barnes is Marketing Communication Manager at Adsy guest post service and a writer for gearyoda. She is an enthusiastic blogger interested in writing about technology, social media, work, travel, lifestyle, and current affairs.

The transition of commerce to an electronic format is a well-established and economically sound process which is in its prime. Shopping and paying online has already become an integral part of modern life. Conversion of e-commerce platforms is more than 7% versus just 3% in the retail sector. But how has the transformation of e-commerce affected logistics?

The transportation of products remains a physical process that cannot be realized through the Internet. However, electronic administration of logistics processes is available now, and advanced technologies help optimize the product movement along the supply chain. How does this all happen and what are the current trends – let’s understand.

Why Classic Logistics Has Become Obsolete

The answer is simple: needs are growing.

If we immediately exclude the possibility that a business delivers goods on its own without involving third parties, then, in any case, there is some company in the chain between the brand and the consumer. With its help, goods get into the hands of buyers from different cities and countries.

But if earlier, in most cases, it was a matter of delivering the product to stores and other retail structures, now everything is much more sophisticated. Buyers may request delivery to their nearest post office, special pick-up point, or even directly to their home. This required a qualitative change in storage conditions and technologies used.

Reasons for the Rapid Development of Logistics

In order to take their place under the sun in a trading niche, brands choose the most effective methods. This is what is most appreciated by any buyer – a wide range of products and short delivery time: who would want to wait for their goods for several months? The same goes for digital commerce. Therefore, you should not be fooled, for example, a case of Photza digital photo retouching service, when they reduced the delivery time from 3 days to 2 and began to send ready-made photos not only through your personal account on the website, but also duplicated by email link to Dropbox, increased conversion by 17.3%.

A good example of successful adapting to new realities is Amazon. By activating 50 picking warehouses throughout the United States, this giant got the opportunity to promise customers next-day delivery. With the help of a special code (SKU), each item was designated, then it arrived at the distribution center, and was ready to be further piece-picked for individual orders.

The closer the inventory to the buyer, the faster the delivery. Other retailers and businesses quickly realized this and began to deploy new capacities, using both internal departments and shared resources managed by third-party partners.

New Trends and Their Impact on Logistics

Implementation of Digitalization

This is a crucial thing that makes sense to mention. Advanced technologies, the ability to create and use customized software adapted for each business and its logistic model, electronic databases and much more allowed many brands to reach a new level.

Digitalization not only accelerates work, but it also provides greater stability and sustainability in the implementation of supply chains. With its help, brands can check the availability of products in any storehouse at any time, request information on the latest deliveries as well as the status of different orders, manage inventory and pre-compile optimal routes.

The Same-Day Delivery

The question of how to speed up the process of getting the product into the hands of the buyer continues to occupy the minds of brands. The most relevant category of goods for delivery on the same day is, of course, food. One can also include consumables here. Short-lived commodities do not stand the test of time, therefore, special conditions must be provided for them. And this is not a whim of the client or the quirk of the manufacturer, but an urgent need.

Moreover, there is a certain relationship between service and money, which people consider appropriate to pay for it. This balance should be carefully calculated and taken into account. It is also interesting that more than 60% of clients are willing to pay more in order to receive the goods on the same day or at least the next day. If the brand has the opportunity to fulfill this desire, then we can say that it is already one step ahead of its other less savvy competitors.

To reduce the cost of delivery and ensure its optimization, platforms such as Uber implement market models that analyze and compare supply and demand. For example, they select available couriers and orders received in real time and, by appointing a courier to deliver a product, seek to minimize the average travel time. The whole system is fully automated: large amounts of money were invested to ensure its correct functioning. Notably, they fully paid off, because as a result, the organization has received a platform that provides stable and trouble-free operation.

The scheme of working with local couriers is gaining momentum, and in the near future, many large retailers are expected to switch to it. This is convenient and, as indicated above, requires the greatest cost only at the initial stage of implementation. With the correct formulation of the problem and the determination of the goals pursued, success will not be long in coming: it remains only to maintain the system and periodically update it. No one wants to be left overboard as an outdated option.

Couriers Robots

Delivery of goods by robots is also not as far away as it might seem. Starship Techno logies is already launching its standalone food delivery robots in Tempe. Self-guided robotic vehicles can carry orders weighing up to 40 pounds over a distance of 3 miles. Autonomous navigation is provided by a 360-degree camera, which makes a robot an absolutely independent counterpart to couriers, reducing labor costs by more than 70%. Bots work best in urban centers.

There is no information about possible obstacles to their movement yet. In addition, such machines encounter far fewer legal barriers than their unlucky colleagues – drones.

The Power of Social Media

While marketing and link building strategies allow the brand to improve its online visibility, social networks dominate in matters of instant communication with customers. Clarification of address details, obtaining prompt feedback and providing the information requested by customers optimize logistics processes from a coordinating point of view.

SaaS Options to Streamline Supply Chains

Manual supply chain management with modern production volumes nowadays seems almost impossible; to say the least, then certainly both an outdated and inefficient method. Therefore, many businesses resort to various software-as-a-service supply management options.

This process became especially popular after the entry of cloud computing into the game. It made available timely informational and structural updates and created easy ways to manage infrastructure costs.

Advanced Product Tracking Scheme

The use of GPS has become another milestone in the history of an e-commercial boom. With its help, it became possible to track the location of the goods at any stage of their journey, whether it be moving to a regional storehouse or last-mile delivery. Moreover, tracking is a useful option for customers: they can clearly imagine and assume how much they have left to wait for their goods.

In the event of an unforeseen situation, brands can immediately detect problems and take all necessary measures to restore the procedure for transporting products to the buyer.

In the End

Modern problems require modern solutions. Therefore, in parallel with the new e-commerce opportunities, up-to-date options appear that handle the transportation of small and large goods equally well. Digitalization has given a significant impetus to the growth of new capabilities. Timely delivery at a price that satisfies the customer is what businesses strive for by updating their logistics models.

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Marie Barnes is a Marketing Communication Manager at LinksManagement, where you can buy real backlinks, and is a writer for gearyoda. She is an enthusiastic blogger interested in writing about technology, social media, work, travel, lifestyle, and current affairs.

Six Key Technologies for High-Performing Logistics