The logistics Industry in 2022 will be witnessing significant transformations owing to the fast-paced change in consumer habits and preferences. Businesses are investing in supply chain technologies more than ever as crises like the Covid-19 pandemic have exposed the gaps and pain points in the logistics industry that are yet to be addressed.
Have you read the headlines about the wastage of COVID-19 vaccination while transporting it from labs to vaccination centres?
Around 25% of vaccines were directly put into dustbins during the second pandemic, even before reaching doctors and patients.
The biggest challenge was the lack of cold chain logistics infrastructure to transport vaccines requiring 2-8 degrees Celsius. Hence, India observed an escalated demand for cold-chain logistics infrastructure.
Logistics Industry in 2022
The logistics industry in 2022 has become a complex, articulated and strategic structure: a critical success factor in the modern economy.
The change has already begun, and the next ten years will open the door to a new era: the ability to adapt to the unique factors that dictate the game’s rules will establish winners and losers in the logistics industry in 2022.
Top Logistics Trends 2022 that will Redefine The Logistics Industry
Consumers today want quick delivery, and companies strive to develop new technologies that can help them resolve the last mile problem. Crowdsource technology is a crucial trend to watch out for as it facilitates on-demand deliveries. Retail giants like Amazon catering to customers with their lightning speed delivery have raised the bar for other companies.
Logistics companies that are lagging in terms of last-mile delivery are at the risk of losing their business to their tech-driven rivals. With consumers’ heavy reliance on online shopping and want for instant gratification, last-mile delivery is no longer a nice-to-have but a prerequisite to survive in this competitive market.
Drone deliveries are picking up in congested urban areas, and the global last-mile delivery market is expected to reach USD 200.42 Bn in 2027.
The worldwide pandemic has pushed the mindset of replacing human labour with the latest technology. Nowadays, companies favour mobile robots, advanced data analytics, and computer vision solutions to reduce human involvement.
Warehouse automation is automating the transfer of inventory in or out of the warehouse to customers with less or no human involvement.
A French-based startup Exotecdeveloped an automated robot Skypod which optimized the warehouse with more floor space and vertical space by using a vertical storage method. It provides a wide range of advantages to companies like:
- Better resource utilization.
- A decline in labour and operational cost.
- Better customer service
- Increased data accuracy & efficiency.
- Less shipping errors & inventory loss.
- More warehouse spaces.
Moreover, robotics and artificial intelligence will play a vital role in automating the warehouse and logistics industry in 2022.
3D printing has captured the interest of everyone. 3D printing is already a major disruptive trend in some industries, and it will undoubtedly disrupt others.
It is likely to impact logistics and especially the design of supply chains. 3D printing is the process of making three dimensional solid objects from a digital file. Logistics providers should embrace this change and anticipate the implications of 3D printing on global supply chain dynamics.
Accenture believes that digital supply networks are the backbone of this new ecosystem: worldwide conduits that streamline and accelerate the exchange of products, materials, components and (perhaps most important) information.
3D printing will offer opportunities for mass customization and decentralized production.
Presently, the value of the transferred production is approximately 4,000 billion Euros. The impact forecast by the new technologies (3d printing, but IoT as well) will reduce between 2.3% and 3.9% in 2025. Fewer products will be shipped far away, but “last mile” shipping could increase.
As you read this, drone deliveries are being tested in Canada and India. It is soon going to be the new trend that changes the industry forever. It is a great way to avoid traffic, and with more experiments, they will be able to avoid weather issues globally. At some point, companies will use drones to track packages, monitor and search, locate assets and employees. As a result of these trends, more logistic companies are ready to embrace the change and use insurance to provide a safety net.
Tech enthusiasts have been talking about the future promise of autonomous vehicles for many years, but these robotic transportation systems are already here in many ways. Independent trucks are already beginning to run under “supervised autonomy,” and it’s only a matter of time before that supervision becomes unnecessary. If they are appropriately designed and tested, autonomous vehicles have the potential to be safer, less expensive, and easier to manage than manually driven vehicles. That makes operating expenses lower, keeps the roads safer, and allows vehicle operators to find new, higher-level positions in their respective companies.
A blockchain is a digital ledger of duplicated transactions distributed across the entire network of computer systems on the blockchain. In simple terms, all-digital ledgers are a series of encrypted “blocks” interlinked in a public chain. There is no trust issue if you buy a product in your area and a deal is made face-to-face. However, in interstate or global trade, the risk of forged and misleading documents exists.
It builds a trustworthy environment for users by assuring 100% forgery and modification of free data, documents and transactions. The Blockchain in Transport Alliance (BiTA) has around 85% of truck-based transactions globally. Blockchain helps customers and suppliers track the visibility of the order. It increases efficiency and effectiveness by observing vehicle performance history.
With rising concerns about carbon emissions owing to increased demand for the logistics industry in 2022 on account of expanding eCommerce, there is a shift towards greener transportation alternatives. The global electric truck market is projected to reach $1,893.1 million by 2027, and this growth can be partly attributed to the logistics industry in 2022 replacing their fleet with greener vehicles. Not just trucks, electric two-wheelers, three-wheelers, and light commercial vehicles are also in demand. Adopting such sustainable practices provides remarkable benefits such as lots of torque, low levels of pollution, and reduced maintenance costs.
The Cloud is used in virtually every aspect of modern life, including banking, email, media streaming, and eCommerce. Microsoft defined cloud computing as the delivery of computing services- servers, storage, databases, networking, software, analytics, and the internet (the Cloud).
Cloud computing is benefitting the logistics industry in 2022. In the logistic sector, daily interaction between stakeholders is necessary. Cloud computing enables the cost-effective connection of many partners throughout the supply chain. Besides this, the cloud-based SaaS solutions have the following advantage for logistics industry in 2022:
- Collects data from customers, retailers and wholesalers to comprehend the supply & demand gap.
- Easy to learn and has high adoption rates.
- Reduces the stress and cost of additional software with upgrading capabilities.
- The offered initial cost is also low.
- The business escalates to acquire a more extensive customer base.
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