Drones, Droids, and Delivery Bots: The Future of Last-Mile Logistics

April 2nd, 2024 Sneha Jaiswal Leave a comment

The world of logistics is on the brink of a major transformation, with the last mile of delivery posing both significant challenges and opportunities for innovation. Last-mile logistics, the final step of the delivery process where goods are transported from a distribution centre to the end customer, has traditionally been the most expensive and time-consuming part of the shipping journey. However, the advent of drones, droids, and delivery bots presents a potential revolution in how businesses approach this final hurdle.

Emerging technologies in automated delivery are poised to drastically reduce delivery times, cut costs, and enhance environmental sustainability. This blog delves into how these innovations could redefine the landscape of last-mile delivery, offering a glimpse into a future where the delivery of packages is faster, more efficient, and more accessible than ever before.

The Rise of Autonomous Delivery Vehicles

With e-commerce sales soaring globally, the pressure on last-mile delivery services has never been higher, making the need for innovative solutions more pressing.

Autonomous delivery vehicles, encompassing drones, droids, and delivery bots, represent the cutting edge of technology aimed at overcoming the inefficiencies of last-mile logistics.

Drones, aerial vehicles that can navigate autonomously to their destination, offer the promise of rapid delivery times by flying directly to customers’ doorsteps, bypassing road traffic entirely. Droids, or ground-based robots, can navigate sidewalks and pedestrian areas to deliver goods, offering a versatile solution for urban environments. Delivery bots, which can range from small sidewalk-bound units to self-driving vans, offer scalable solutions for a variety of delivery needs.

The historical context of these technologies traces back to the early experiments with unmanned aerial vehicles and automated guided vehicles in industrial settings. However, it wasn’t until the last decade that significant advancements in AI, machine learning, and robotics made the commercial use of drones, droids, and delivery bots a feasible option.

Pioneering companies in this space include Amazon, with its Prime Air drone delivery service; Starship Technologies, known for its autonomous delivery robots; and Nuro, which has developed a self-driving vehicle designed specifically for goods delivery. These companies are at the forefront of testing and implementing these technologies, paving the way for a future where autonomous delivery vehicles are a common sight.

As we delve deeper into each type of autonomous delivery vehicle, it’s clear that the potential benefits are immense. However, the path forward involves navigating regulatory challenges, ensuring safety and privacy, and ultimately gaining public acceptance. The journey towards widespread adoption of these technologies will undoubtedly transform last-mile logistics, offering a glimpse into a future where the delivery of goods is faster, cheaper, and more efficient.

Drones in Last-Mile Delivery

Delivery drones are equipped with advanced navigation and communication technologies that allow them to autonomously fly to specific locations. These unmanned aerial vehicles (UAVs) leverage GPS for routing, have collision avoidance systems to navigate around obstacles, and can carry payloads varying in weight, typically up to 5 pounds. Some drones are designed to drop packages from the air gently, while others land to safely deliver goods.

Case Studies of Successful Drone Delivery Services

Amazon Prime Air has been a frontrunner in drone delivery, testing drones that can deliver packages under 5 pounds to customers within 30 minutes.
Zipline operates the world’s largest drone delivery network, focusing on medical supplies in Rwanda and Ghana. It showcases drones’ life-saving potential by delivering blood, vaccines, and medical supplies to remote areas.
Wing, a subsidiary of Alphabet, has launched commercial drone delivery services in Australia, Finland, and the U.S., delivering everything from food to pharmacy items directly to consumers’ homes.

Regulations and Safety Concerns

The widespread adoption of drone delivery faces regulatory hurdles, primarily regarding airspace management, privacy, and safety. Countries are evolving their aviation laws to accommodate drones, with safety being the paramount concern. Drones must navigate complex airspaces without endangering commercial aircraft, and there are significant privacy concerns regarding drones flying over residential areas.

Droids on the Ground

Delivery droids are ground-based autonomous robots designed for urban environments. They navigate sidewalks and pedestrian paths, using sensors and cameras to avoid obstacles and safely reach their destination. These robots are typically equipped with secure compartments that can only be opened by the recipient, ensuring the safe delivery of goods.

Comparison with Drone Delivery – Pros and Cons

Pros: Droids are less affected by weather conditions than drones and are capable of carrying heavier payloads. They operate at ground level, which mitigates some privacy and safety concerns associated with drones.
Cons: Droids face challenges in navigating crowded or complex urban environments and may be slower due to ground-based obstacles and traffic.

Examples of Current Droid Delivery Services and Pilot Programs

Starship Technologies has deployed its delivery robots across college campuses and urban areas, offering a convenient delivery solution for food and parcels.
Postmates’ Serve is a robotic delivery service that navigates sidewalks to deliver goods within local neighbourhoods, enhancing local delivery capabilities.

Delivery Bots – The Automated Couriers

Delivery bots range from small robotic units to large self-driving vehicles, all designed to transport goods without human intervention. These bots operate in various modes, from following pre-mapped routes to dynamically navigating through urban and suburban environments. Some are designed for sidewalk use, while others are equipped to travel on public roads alongside traditional vehicles.

Integration with Existing Logistics Infrastructure

The integration of delivery bots into the existing logistics infrastructure involves several key components:

Warehousing: Automated warehouses work in tandem with delivery bots, preparing and loading goods for delivery.
Routing: Advanced algorithms determine optimal routes, considering traffic, distance, and delivery windows.
Customer Interaction: Bots often communicate with customers via mobile apps, providing updates on delivery status and allowing for secure retrieval of goods.

Case Studies Highlighting Efficiency and Scalability

Nuro has developed a self-driving vehicle specifically for goods delivery, partnering with major retailers and grocery chains to test and scale its service.
FedEx’s SameDay Bot is designed to make same-day and last-mile deliveries more efficient, particularly for last-minute or urgent deliveries within local areas.

Each of these technologies—drones, droids, and delivery bots—offers unique advantages and faces distinct challenges. Together, they represent the forefront of innovation in last-mile delivery, promising to transform how goods are transported soon.

Challenges and Limitations

The integration of autonomous delivery vehicles into logistics, such as those operated by a logistics company in Kolkata or elsewhere, faces a spectrum of challenges and limitations. These can be broadly categorized under technical and regulatory hurdles, privacy and security concerns, and the intricacies of urban and rural delivery landscapes.

Technical and Regulatory Hurdles

Complexity in Navigation: Autonomous vehicles need to reliably navigate diverse environments, from densely populated urban areas to remote rural locations.
Safety and Efficiency: Ensuring these vehicles can operate safely alongside humans and traditional vehicles is paramount, requiring advanced AI and machine learning technologies.
Regulatory Frameworks: Existing laws and regulations are yet to fully accommodate the unique needs and capabilities of autonomous delivery technologies, necessitating updates and new legislation.

Privacy, Security, and Public Acceptance Issues

Privacy Concerns: The operation of drones, in particular, raises questions about aerial surveillance and the potential for privacy infringements.
Security of Goods: Safeguarding the parcels from theft or damage during transit and after delivery until they are securely retrieved by the recipient.
Public Acceptance: Building trust in these new technologies is essential for their adoption, requiring efforts to demonstrate their safety, reliability, and benefit to communities.

The Challenge of Urban and Rural Delivery Landscapes

Urban Navigation: Congested streets, high-rise buildings, and dynamic environments pose significant navigation challenges for ground-based droids and aerial drones.
Rural Deliveries: The vast distances and lack of infrastructure in rural areas present obstacles for efficient autonomous delivery, potentially limiting accessibility and speed.

The Future Landscape of Last-Mile Logistics

As we look towards the future, the landscape of last-mile logistics is poised for a transformative shift, driven by the integration of drones, droids, and delivery bots.

Integration with AI and Machine Learning: These technologies will play a crucial role in enhancing the operational efficiency of autonomous delivery vehicles, enabling better route optimization, obstacle avoidance, and customer interaction.
Impact on Employment and Economy: While automation may streamline operations, it also raises questions about the future of employment in the logistics sector. Adaptation and re-skilling will be key.
Predictions for Future Integration: Continued advancements suggest a future where autonomous delivery becomes a standard option, offering faster, more cost-effective, and environmentally friendly alternatives to traditional methods.

Case Studies and Emerging Trends

Exploring case studies and emerging trends provides valuable insights into the practical applications and potential of these technologies.

Global Innovations: From the streets of San Francisco to the skies over Rwanda, companies worldwide are pioneering new uses for autonomous delivery vehicles, addressing unique local challenges and opportunities.
Emerging Trends: The increasing collaboration between tech companies and traditional logistics providers points towards a future where logistics networks are more integrated, flexible, and responsive than ever before.

Conclusion

The potential of drones, droids, and delivery bots to revolutionize last-mile logistics is immense, promising a future where deliveries are faster, more efficient, and less impactful on the environment. Embracing these technologies requires navigating a complex landscape of challenges, but the rewards—improved service, reduced costs, and enhanced sustainability—are well worth the effort. As we stand on the cusp of this new era in logistics, it is clear that innovation, adaptation, and collaboration will be key to realizing the full potential of autonomous delivery vehicles.

Global Logistics, Global Trade Daily

3 Last Mile Trends You Should Be Excited About

August 3rd, 2023 Joe Oliaro Leave a comment

As we move towards the second half of the year, it is expected that online retail sales in the US will reach an estimated $1 trillion. This is yet another accomplishment for the already growing industry, which continues to pose a challenge for carriers in terms of “The Last Mile”.

The Last Mile refers to the final stage of the delivery process, which constitutes approximately 53% of the total delivery cost. However, the increasing demand for swift and efficient deliveries at lower costs has presented itself as an opportunity for carriers and manufacturers alike to diversify themselves to stay ahead of the competition.

This is particularly significant for large-scale platforms such as Wal-mart, Target, Amazon, and others that facilitate the sale of standardized products. In this article, I will highlight some key trends and updates to consider as we observe the final leg of a product’s journey from its producer to the consumer.

The Last Mile Landscape and What it Includes

At its core, he Last Mile refers to the final stage of the delivery process, where goods are transported from a transportation hub to the end-consumer’s doorstep. This phase involves various parties: customers seeking timely and hassle-free deliveries, merchants wanting to provide superior services, and delivery providers looking to make profitable transactions.

The complexity of ‘The Last Mile conundrum’ is apparent as each group attaches diverse expectations concerning delivery speed, service quality, cost-effectiveness, and visibility. The interplay of these variables can result in challenges and trade-offs for any participant, leading to less than optimal outcomes.

Despite considerable efforts to improve Last Mile delivery, success remains elusive, as new issues and developments continue to emerge. In fact, technological advancements, market trends, and environmental factors continue to raise the bar higher, creating new dilemmas for companies to address.

The Moving Horizon

Customers expect merchants to have a full spectrum of capabilities to get them their product or service. Funny, now the term “omnichannel” has lost its shine, outdated since it is now the standard. However, customers are not willing to pay for this capability.

This can be especially challenging for commoditized products that are sold on a large scale, such as paper towels, dry goods, and household staples. Niche products/brands have sought to overcome this challenge by selling their products to their “fan base” on Amazon or third-party platforms if drop shipping does not make financial sense.

Merchants often face blame for not getting products to their destinations on time. But the blame may not always lie with them, especially when seasonal peaks are involved. Merchant flexibility is still expected despite peak times and costs, which has resulted in changes in the way products are packaged and shipped. Poor packaging can lead to higher return rates, which can strain resources.

Delivery providers come in a variety of types. Traditional delivery providers include FedEx, UPS, USPS, and DHL. Of these carriers, USPS has a unique infrastructure that tends to fare better with individualized and unique deliveries to high and low-density residential markets. USPS faces challenges since mail volume and frequency are declining. Other carriers are attempting to emulate the residential delivery process/system similar to USPS to avoid a crunch on margins and to exploit a customer-dense model.

Some carriers and manufacturers have begun partnering with local/regional third-party logistics and fulfillment providers to manage The Last Mile. However, this solution still proves challenging for high volume, time-sensitive, and repetitive product sales. It is likely that public drop-off points will have to be inserted into existing buildings and infrastructure to accommodate carriers partnering with 3PLs.

Finally, it is important to consider the gig economy as an emerging solution for logistics management. Companies like Google, Uber, UberEats, Instacart, TaskRabbit, and Postmates outsource their logistics to the masses. It is expected that what used to be your son/daughter’s “paper route” will become your teenager’s summer gig as a freelance Uber driver, food delivery and yard worker.

2. Emerging Business Models

There are several ways that delivery can be arranged when purchasing goods from a seller. One option is where the seller arranges the delivery by working with partners and dividing up the route based on each company’s strengths. Another option is an intermediary arranged delivery where companies offer goods from multiple sellers. The intermediary purchases and picks up the goods on the customer’s behalf, then arranges a suitable time and place for delivery.

Brick and mortar stores often offer buyer arranged pick up, where customers can collect their purchases themselves. However, a more integrated inventory management system could be used to pull from in-store and distribution centers, or drop ship to make the process more accurate, faster, and cheaper overall.

3. Streamlining the Last-Mile

There are several high impact/low cost initiatives that cities are introducing to cut down on truck traffic and reduce emissions. One such initiative is the idea of shifting delivery windows to times with lower traffic volumes. Centralized drop off lockers, such as those being tested by QuikTrip and Amazon, can also help reduce the need for individual deliveries to residential areas, while the better usage of alleys and curb space can keep traffic lanes open in dense urban areas.

Another idea being implemented in some cities are “superblocks”, which only allow local traffic, with other traffic being routed around to specific delivery and drop-off points. This cuts down on emissions, air quality, and traffic congestion. Low emission zones are also being created in Europe, where access by some polluting vehicles is restricted or deterred in order to improve air quality. Encouraging the use of alternative vehicles such as electric scooters and bikes can also help reduce emissions.

Tweaking existing infrastructure such as converting vacant lots and buildings to warehouse/fulfillment spaces can also help cut down on delivery traffic. Retailers can reduce truck traffic by switching from a just-in-time inventory system to stocking more items in brick-and-mortar stores. Green shipping methods, such as floating products on a river, are also being explored.

Consolidating freight and establishing local delivery hubs will help cut down on the number of individual deliveries being made. By implementing these initiatives, cities and companies can work together to reduce traffic congestion and emissions while improving air quality.

Author Bio

Joe Oliaro is the Chief Real Estate Officer and Vice President of Sales for Wagner Logistics, a leading 3PL provider that has specialized in contract warehousing, transportation and fulfillment services for over 75 years. Joe brings a unique perspective to Wagner’s leadership team as he oversees their top-notch sales team and real estate activity across Wagner’s coast-to-coast portfolio. Day-to-day, he coordinates with professionals in the organization to create solutions for new and existing customers. For more information, visit https://wagnerlogistics.com/

Global Logistics, Global Trade Daily

Navigating The Last Mile: Capacity Planning in Today’s Supply Chains

June 1st, 2023 Tim Jay Leave a comment

79% of respondents surveyed consider last mile delivery as very or extremely important in providing a competitive edge.

OH – FRAYT, the last mile on-demand delivery and logistics platform, today announced, has released a new report titled, “Navigating the Last Mile: Capacity Planning in Today’s Supply Chains.” The report is based on a survey of 95 supply chain professionals who are directly involved in last- and middle-mile operations. The report provides valuable insights into the challenges, strategies, and trends shaping the future of last mile delivery.

As the global retail landscape continues to evolve, last mile delivery has emerged as a critical element of the customer experience. The rapid expansion of e-commerce and the “Amazon Effect” has heightened consumer expectations for fast, efficient delivery. Businesses that meet these expectations are gaining a competitive edge, and the last mile has become a key point of differentiation.

The report highlights the differing interpretations of “last mile,” which range from order placement to delivery, dispatch to delivery, and pickup to delivery. This variation suggests a need for businesses to consider expanding their definition of last mile to enhance operational efficiency. A more comprehensive view could reveal opportunities for improvement that might otherwise be overlooked.

The survey also underscores the importance of innovation, technology and customization in last mile delivery. Businesses are investing in new technologies and offering personalized delivery options to meet the evolving needs of their customers. Options such as specific delivery windows or locations are becoming increasingly popular as businesses strive to provide a standout delivery experience.

“The last mile is often the final touchpoint between a business and its customers, leaving a lasting impression,” said Jim Waters, Vice President, Marketing at FRAYT. “The findings of our report underscore the vital role of last mile delivery in today’s shipping and delivery landscape. As businesses continue to navigate this complex and rapidly changing environment, we are committed to providing them with the tools they need to thrill customers.”

FRAYT’s report, “Navigating the Last Mile: Capacity Planning in Today’s Supply Chains,” is now available for download on the company’s website.

About FRAYT

FRAYT is a last mile on-demand delivery and logistics technology company that offers businesses professional, reliable on-demand shipping through an intuitive web platform, API and mobile app. The company has over 13,000 drivers in over 50 markets across the United States, headquartered in Cincinnati, Ohio. For more information, please visit www.frayt.com.

Archives, Global Logistics, Global Trade Daily, News

Locus Launches ‘Last-Mile Maturity Assessment’ For Enterprises to Level-Up Their Strategies

February 28th, 2023 Tim Jay Leave a comment

The new benchmarking tool gives businesses personalized insights and recommendations on the maturity of last-mile operations in just seven minutes

Locus, a leading-edge technology company solving for excellence in last-mile logistics, announced the launch of ‘Last-Mile Maturity Assessment’ – an industry-first benchmarking tool designed to help enterprises evaluate strengths, uncover hidden inefficiencies, and identify new growth opportunities in their last mile.

To help businesses evaluate the maturity of their last-mile operations, the free interactive online assessment conducts an in-depth analysis through well-researched questions spanning five fundamental performance indicators:

Last-Mile Excellence: How robust last-mile capabilities are in the face of exceptions, unpredictable volumes, and profitability
Customer Experience: The quality and consistency of the customer experience an organization’s last-mile offers
Workforce Empowerment: Employees’ abilities to handle last-mile challenges
Advanced Analytics: The opportunity to leverage last-mile data and make more informed decisions on the supply chain
Sustainability: How environmentally sustainable a company’s last-mile function is today

The assessment then scales enterprises on a 5-point rating system and categorizes them as businesses in the Emerging, Growth, or Optimized stage. Assessment takers walk away with a 360-degree comprehensive report that delivers personalized recommendations and actionable insights on how to unlock new revenue, & make delivery experiences a differentiator for enterprises.

About Locus

Locus is a leading-edge technology company solving one of the most challenging global supply chain problems: Last-Mile logistics. Locus’ order-to-delivery dispatch management software helps enterprises transform their Last-Mile logistics operations from cost centers to revenue generators through advanced optimization algorithms and intuitive workflow automation that equip businesses with the tools needed to maximize efficiency while delighting customers.

Founded in 2015 and backed by GIC Singapore, Tiger Global, Qualcomm Ventures, and Falcon Edge, Locus has helped a wide range of customers globally across industries – including Unilever, Nestle, Bukalapak, The Tata Group, BlueDart, etc. – execute 850 million deliveries across 30+ countries across North America, Europe, Southeast Asia, the Middle East, ANZ, and the Indian subcontinent. Its technology has also helped save $275 million in transit costs, offsetting 70 million kilograms in CO2 emissions while maintaining 99.5% SLA adherence ratio.

Archives, Global Logistics, Global Trade Daily

Why Enterprises Must Prioritize an End-to-End View of Last-Mile Operations to Remain Competitive

February 27th, 2023 Nishith Rastogi Leave a comment

Amidst a massive surge in online purchases and heightened consumer expectations, last-mile logistics operations have been thrust into the spotlight for company executives like never before. Organizations across the world have finally taken note of just how critical this function is in enabling enterprise-wide success and – on the flip side – how detrimental it can be to bottom line results if mishandled.

In an ever-evolving and hyper-competitive e-commerce landscape, Last-Mile – the last leg of fulfillment to reach a customer’s doorstep – has also become the face of the modern customer experience and a way for retail brands and the CEP and 3PL providers delivering their packages to differentiate themselves from competition, delight customers, and keep them coming back for more. As one of the most complex pieces of the overall logistics puzzle, it’s become another facet that executives are doubling down on to ensure seamless, highly efficient delivery experiences.

But while many are integrating and adopting technology that streamlines last-mile execution, not all have leveraged a 360-degree, comprehensive view of exactly where their company’s weaknesses or opportunities lie. In fact, most are adapting almost blindly in a guessing-game of where to prioritize their resources to bolster their strategies and drive ROI. It’s putting businesses at greater risks none can afford today.

In order to minimize this friction, companies should take more critical and holistic stock of their current last-mile ecosystem, including several key pillars that enable tangible success today and in the future:

Last-Mile excellence

Undoubtedly the trickiest and most costly portion of the delivery journey, the last-mile has the power to transform logistics operations and improve repeat business rates. Thus, taking a critical look at how this function is running and the major challenges companies continue to face in their delivery processes is key.

For instance, asking questions like: how confident are we in our ability to handle spikes in demand? Are we constantly combating unpredictability in the Last-Mile that we can’t adapt to? Are we looking to provide speedier deliveries than we’re currently able to handle?

Companies today that aren’t consistently using optimized or automated delivery route planning strategically are likely to answer yes to the above. They’re often at a severe disadvantage than counterparts that are. And the reality is that any attempt at manual efforts today will be wrought with unnecessary hurdles, human error, and risk, especially in the face of high volumes during the peak seasons. Utilizing dispatch management software, for instance, can help automate every stage of fulfillment with secure applications and seamless integrations. This also allows the applications to communicate with each other and use the same data so that systems are in-sync even (and especially) when real-world constraints throw a wrench into original plans.

In order to maintain that competitive advantage and keep final-mile logistics running efficiently and effectively, industry players need to take full advantage of the technology at their fingertips, including advanced analytics, machine learning, AI, and more, or they’ll lose out.

Exceptional customer experiences

Because Last-Mile fulfillment deals with customers directly, it’s vital in shaping their view of the entire purchasing experience. For many, it dictates whether they’ll purchase from a brand again.

It’s incredibly important to evaluate whether customers are actually satisfied with the updates they receive on their order status and the timeliness of their deliveries. If the feedback is consistently negative, and a company identifies major gaps in this area, it’s only a matter of time before it catches up with them.

An efficient last-mile system can help manage, track, and schedule deliveries, and emerging tech like AI and ML can anticipate needs and constantly adapt to changing environments in real-time. Additionally, implementing a customized slot-based delivery system into current operations and displaying multiple delivery slots will lead to a more convenient delivery experience for customers and more directly satisfy their desires. By prioritizing real-time tracking and a high level of transparency, businesses can drive greater value and less friction for customers.

An empowered workforce

As labor issues continue to plague the logistics sector, organizations must understand that drivers are at an all-time premium and will have no issue jumping ship to work with an enterprise where they feel set up for success and long-term growth. And while customer experiences are high-priority, without engaged, productive, and capable talent to make those deliveries – the customer experience aspect will undoubtedly suffer.

Companies should constantly assess the health and wellness of their drivers to ensure continuity. How important is it for your drivers to sustain optimal levels of productivity?

Do they have all of the tools they need to succeed on routes and have greater predictability in their day-to-day execution? Is there a feedback loop in place for open, candid communication that ensures their voices are heard if they’re unsatisfied or need more?

At the end of the day, most drivers just want to feel like they can do their best work under what has become incredibly stressful conditions. Without taking account of the onboarding processes in place, the resources and solutions that eliminate resented unknowns, and the incentives from employers to do a job well-done, last-mile operations will struggle to excel.

Upholding sustainable promises

A recent report from MIT indicates that 23% of brands face pressure from investors to improve their end-to-end supply chain sustainability. Not only are brands facing pressure from investors, customers are also seeking out companies committed to sustainable business practices and the environment. This function is no longer a “nice-to-have” today; it’s business-critical to remain competitive and profitable.

Enterprises must therefore prioritize sustainability across the entire fulfillment chain. From a technology standpoint, this includes factoring in carbon emissions when planning daily routes and using the right tools to optimize those routes and reduce the number of miles driven, ensure optimal load capacity, and minimize reattempts or failed deliveries that contribute significantly to carbon emissions.

From an operational standpoint, companies should also consider utilizing micro-fulfillment centers and bring them closer to consumers, as well as parcel lockers that reduce carbon emissions. They should also invest in EVs, and other tactics that save on greenhouse gas emissions and reduce a businesses’ overall carbon footprint.

Above all, sustainability should be a top strategic pillar for every organization today and be seen as a win-win-win for organizations, customers, and the general public.

Harnessing the power of advanced analytics

With the help of advanced analytics and deep intelligence, brands, retailers, CEPs, and 3PLs have the opportunity to leverage these technologies to become more efficient and make better informed decisions across the board. AI and ML have the power to transform final mile operations and give leaders that coveted 360-degree, end-to-end view of their logistics practices.

Prioritizing such visibility can streamline Last-Mile operations, increase customer satisfaction, contribute to sustainability efforts, and allow leaders to make better decisions for the long term health of their business by leveraging large volumes of on-ground data.

Achieving this sort of visibility however, particularly in the Last-Mile operations, is undoubtedly no easy feat. Nonetheless, it has the power to revolutionize all facets of a business, giving an upper hand to those who take this challenge, helping them to achieve a competitive edge, become profitable, and enable delightful consumer experiences at scale.

Author Bio

Nishith is the CEO and founder of Locus and drives business strategy and innovation at the company. He is responsible for business expansion across geographies and heads operations globally. Prior to founding Locus, he worked with Amazon, building algorithms to counter credit card fraud. He also co-founded PinChat, a location-based conversation platform.

Nishith holds a Bachelor’s degree in Electronics and a Master’s in Economics from BITS Pilani. He is a published author in the field of experimental physics and has patents in Machine Learning.

Archives, Global Logistics, Global Trade Daily, Warehousing

What Does 2022 have in Store for the Shipping & Logistics Industry?

October 7th, 2021 Tim Robinson Leave a comment

The word logistics derived from the French term ‘logistique’ originated around 1830 in the military and is referred to as the movement of supplies and equipment in the war field.

In layman’s terms, logistics is the overall process of managing how resources such as equipment, inventory, food, liquids, materials and people are acquired, stored and transported to their final destination.

The logistics industry which was valued at $7,641.2 billion in 2017 plummeted to $5,200 billion in 2020. The COVID-19 pandemic was mainly responsible for this massive slowing of logistics activities across the world.

While some industries struggled badly during the pandemic, many industries such as the daily essential goods industry, e-commerce, healthcare and pharmaceuticals affected the logistics industry positively. With the COVID situation easing gradually and the world getting back on track, the logistics industry is projected to reach $12,975.64 billion by 2027.

In the year 2022, the logistics industry is predicted a bright outlook and several new trends are expected to dominate the industry. Let us discuss some of the top trends that will determine what is in store for the logistics industry in 2022.

Micro Warehouses and Last Mile Logistics

More micro warehouses are likely to be the trend in 2022. Micro warehouses are dedicated small warehouse spaces focused on moving inventory closer to the customer, especially in densely populated urban areas. It results in faster and efficient last-mile logistics to cater to the increasing demand for same-day and next-day deliveries.

Micro warehouses may not be well suited for products that need to be kept in a climate-controlled environment such as food, beverage and pharmaceutical products. But for common consumer goods and apparel that require minimum special handling, micro warehouses are a great fit.

Increased demand for 3PL and 4PL services

Due to the phenomenal rise of e-commerce, increased demand for 3PL (Third-Party-Logistics) and 4PL (Fourth-Party-Logistics) services are expected.

According to a report by Allied Market Research, the global 3PL market is expected to reach $1.1 trillion over the next six years. 3PL companies that provide warehouses in multiple locations will be more in demand as that would result in efficient last-mile logistics.

3PL and 4PL offer numerous advantages such as being a cost-effective, faster and responsive model. It does have a few disadvantages too, such as lack of direct control and increased dependency of the manufacturer on the logistics provider. In case of any discrepancy, the blame will be on the company and not the logistics provider.

But the advantages outweigh the disadvantages and 3PL and 4PL services are expected to be increasingly in demand.

Big Data and IoT

In these times when excessive data can mind-boggle us, Big Data by its sophisticated and predictive analytic methods uses this complex set of information and forecasts the likelihood of possible events.

Some of the immense benefits of Big Data to the logistics industry are:

-Reducing inefficiencies and helping to make informed decisions

-Predicting things such as, which mode of transportation and carrier to use to maximize profits and meet delivery schedules

-Forecasting demand with more accuracy by understanding customer buying cycles

IoT (Internet of Things) is interconnecting devices and physical objects with embedded sensors, to allow a continuous exchange of data over the internet.

IoT will be increasingly used by the logistics industry to offer innovative solutions to their numerous challenges. Some of the benefits are:

-Increased operational efficiency

-Enhanced visibility into assets such as the location of vehicles and condition of cargo

-Increased security and real-time notification of missing or stolen assets

-Ability to predict the exact time of delivery leading to enhanced customer satisfaction

While the advantages are plenty, the application of Big Data and IoT in logistics can be intimidating for traditional players, prove costly in its initial deployment and may need additional training of personnel.

But as the technology will mature, it will gain more traction and such technologies will become commodified. Business owners of all sizes can then easily adopt and reap its benefits.

Automation and Technology

Automation according to the management consulting firm McKinsey, will be among the top agenda for the logistics industry, owing to three factors: increasing demand from online retailers, a growing shortage of labor mainly in the US, and intriguing technological advances.

Fully automated high-rack warehouses with autonomous vehicles patrolling the aisles would be more commonplace. Managers equipped with AR (Augmented Reality) glasses would ensure full visibility of the entire operations and coordination between robots and humans.

By 2030 it is estimated that most logistics operations could be automated with AI taking over the repetitive and simple tasks performed by humans earlier.

Specialized Staff

The skillset required by people to work in the logistics industry will change dramatically. 2022, will demand staff well aware of the latest technologies.

Some of the most sought-after profiles will be of experts in areas such as process automation, big data and AI. Those who could develop intelligent environments with the use of IoT would be highly valued.

The globalization of the workforce is another trend since the majority of manufacturers will have multi-country operations. Due to the lack of labor in many countries such as the US, outsourcing logistics jobs could be very well a trend.

Green Logistics

Environmentally responsible practices are the need of the hour for all industries including logistics. Green logistics is one such trend that will be increasingly adopted by the industry.

The ways by which logistic companies can adopt green logistics are:

-Eco-friendly warehouses that use timers to gauge and monitor the usage of resources such as electricity, heat, water and gas in their facilities

-Electric and solar-powered vehicles

-Biodegradable packaging

-Using software to calculate the carbon footprint

Blockchain

Blockchain is the much-talked-about method of storing and transferring information in which the record of the transaction is maintained across several computers that are interlinked.

The logistics industry, by using blockchain can integrate all the components into a single platform. This would enhance visibility as logistics providers, carriers, shipping lines and others in the value chain can use the same platform. Payments and invoicing can also be made from the same system.

The benefits include: updating customers and companies of the product journey, identifying problems before they occur and unparalleled data protection.

Robotics

Robotics continue to be used increasingly in the logistics industry and is expected to remain among the top trends in the future as well.

Many companies are increasingly using drones to make deliveries of smaller products. Driverless vehicles are also likely to become more and more common.

Robotics can improve the productivity of the logistics industry drastically by speeding up monotonous and labor-intensive tasks. It does not intend to replace humans but by delegating repetitive tasks to machines, humans can focus on other higher-value tasks.

Conclusion

The future of the logistics industry looks buoyant, given the phenomenal rise of eCommerce and the increasing trend of online shopping. The aftermath of COVID-19 has also been instrumental to fuel the growth of logistics and international shipping.

The logistics market by end-use is projected to be lucrative for most segments and Healthcare is expected to top the charts.

To remain competitive and efficient, the industry players need to continuously upgrade in terms of processes and technology. The adoption of trends that are expected to dominate the industry in the future, such as the ones we discussed will become necessary for the industry players to sustain and flourish.

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Tim Robinson is Digital Marketing Manager at PACK & SEND, a 25+ years old and respected brand in ecommerce, logistics, and freight delivery solutions. Tim has 20 years of combined experience in sales and marketing. Logistics, D2C, franchising, business planning, and operations management are his core expertise. Connect with Tim on LinkedIn.

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FLYING CARS ARE APPARENTLY ON THE WAY…TO CHANGE LOGISTICS

February 8th, 2021 GT Staff Leave a comment

“A 3D transport swarm is coming to your city soon.”

That is not the rambling of a geek pretending to be a nerd who is hiding his dorkiness in his mother’s basement behind a big screen permanently fixed on Syfy.

It comes from none other than Morgan Stanley, which continues, “Over the past day, we’ve seen a number of interesting developments around the UAM (Urban Air Mobility) and eVTOL domain that comprise just a small part of what is clearly becoming a profound development. GM unveiled the latest rendering of its Cadillac branded eVTOL at CES. And the previous day, Tom Enders (former head of Airbus) joined the board of Lilium. Many of our clients may, understandably, chalk the excitement around flying cars to free money and a frothy market environment. Oh sure, that helps… but we believe there are bigger forces at work and worth investor attention today.”

The multinational bank and financial services company’s frequent flyers go on to lay some implications flying cars will have, including a post-COVID, final-mile role in logistics and e-commerce.

And while no less than Tesla CEO Elon Musk has historically dismissed UAM transport modality—due to noise, privacy and general annoyance concerns—Morgan Stanley says, “[W]e would not bet against Tesla unveiling a concept in the UAM arena in the near future.”