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  May 22nd, 2021 | Written by

How Start-Ups are Transforming Logistics

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  • Young innovators and entrepreneurs are coming up with new and modern solutions to some of the industry's issues.
  • Although automation and robotics are frequent topics in sci-fi dystopias, they're not something to be afraid of.
  • One of the most remarkable ways start-ups are transforming logistics is by simply doing better than industry giants.

It’s hard to imagine life in a world as globalized and interconnected as ours without logistics. Logistics ensures that all materials and products get from the point of origin to the point of consumption, which could be on the other side of the world. So it’s fair to say that the logistics business is not going away any time soon. However, it may be changing. Young innovators and entrepreneurs are coming up with new and modern solutions to some of the industry’s most significant issues. And the ways in which start-ups are transforming logistics may make the industry better in the future.

Start-ups are transforming logistics by introducing new modes of transportation

For decades, the logistics industry has relied on traditional modes of transportation. And there are certainly benefits to maritime shipping, long-haul trucking, and speedy air freight, but there are also serious downsides. It’s becoming increasingly clear that the way logistics operates today is not sustainable in the long run. Start-ups are here to change that.

Use of drones

Although drones likely won’t replace standard delivery methods just yet, more and more companies use them as an alternative way to reach their customers quickly and easily. They are convenient for local and last-mile deliveries, but as drone technology evolves, they will undoubtedly be used elsewhere as well. There’s some speculation about their suitability for warehouse inventory sorting, for example.

Software, digital platforms, and online solutions

Specialized software can do wonders for logistics. It can make relevant information easier to gather and interpret, reveal underlying problems you aren’t aware of, encourage better communication, and streamline efficiency. What is more, digital solutions can easily evolve with the business. As the needs of the business evolve, the software can be updated to meet them. This makes it a flexible solution that works in the long run too.

Anticipatory logistics

Any business that has worked with a start-up marketing agency has seen first-hand how important it is to anticipate the customers’ needs if you want to please them. The same principle can be applied in logistics itself. The idea is to predict demand before it occurs.

This way, logistics companies become more proactive and less reactive. By analyzing market trends and anticipating their customers’ needs, logistics providers can transport and deliver goods to distribution hubs early. By the time the consumer orders something, the only thing left is last-mile delivery. Anticipatory logistics like this could cut delivery times significantly. It would also be more cost-effective as fewer vehicles would be traveling empty on their way back. Instead, they’d carry the goods expected to be needed by the time they get back.

Automation and robotics

Although automation and robotics are frequent topics in sci-fi dystopias, they’re not something to be afraid of. In fact, automation could significantly improve the logistics industry. It could eliminate human error, speed up packing and sorting, and improve workplace safety. And with recent strides in machine learning, a world in which robots man warehouses and trucks may not even be that far.

Start-ups are transforming logistics by raising the standards

One of the most remarkable ways start-ups are transforming logistics is by simply doing better than industry giants. A business that has just started out must offer quality service and novel solutions to attract customers, and start-ups are doing that. They are finding ways to spend less money, be more efficient, keep their customers happy, and even be better for the environment. In doing so, they are setting the standard for everyone in the business. By being better, they are inspiring others to be better too. And that benefits the entire industry and everyone who relies on it.

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Emily Peterson is a software developer who specializes in digital marketing for small businesses and start-ups. Her interest in global logistics stems from her work with businesses in the industry during which she witnessed first-hand some of the issues that logistics companies face today.