Supply chain logistics is being disrupted by digitization
The logistics and supply chain industries are increasingly turning to digital technologies. In the face of the COVID-19 pandemic, these industries have been impacted tremendously than other industries. Supply chain and logistics are crucial for businesses to supply quality raw materials, manufacturing process, and tracking, transport and storage of the finished goods. Emerging technologies have significantly driven these industries to the next level. They improve the speed, dynamics and resiliency of the supply chain operations, enabling companies to garner real value and market valuation.
Digitization makes everything seamless in supply chain operations. Companies embracing well-designed supply chain practices experience enhanced growth while meeting consumer needs in a timely manner.
Technology to Redefine Supply Chain of Tomorrow
The supply chain industry currently has undergone an unprecedented pace of change. This change in the coming days will be driven by evolving technologies that will have a considerable impact on the industry. Autonomous Fleet, for instance, will become a greater linchpin in the supply chain, bringing significant efficiency. Already, autonomous vehicles in logistics are in use for several logistics work processes. Although there has yet to wait for autonomous trucks that transport thousands of tons of goods on the open road, autonomous forklifts and robot arms are prevalent in modern warehouses.
To this effort, Mercedes-Benz works on a prototype of the semi-autonomous truck which is scheduled for release in 2025. This model’s computer will not replace the driver completely, but it will let them focus on other tasks inside the cabin. American Freightliner has also developed a similar prototype. The truck’s computer can take control of the truck on the open road and keep a safe distance from other vehicles.
Alongside autonomous systems, IoT holds a crucial place in the logistics space. It provides companies the ability to supervise inventory, manage warehouse stock, optimize fleet routes, and reduce dead mileage. The use of robotics and automation technology is also making its way in logistics and supply chain. As these technologies are easier to program and are more flexible and affordable, they can assist workers with repetitive and physically challenging tasks. Thus, to harness the real potential of these technologies to drive digitization, companies should fundamentally redesign their supply chain strategy.
Future Demand for Logistics Supply Chain
There is no wonder that online demand in the current pandemic scenario has picked a new rise, outstripping the demand for warehouses. According to the report, demand for urban logistics has substantially soared over the past five years up until the outbreak of COVID-19. There was a reduced activity for smaller distribution warehouses as some occupiers took a pause from their expansion plans due to the pandemic. However, despite this, the market saw an upward trend as larger distribution warehouses reached 100,000 sq. ft. or greater during Q2 2020.
Moreover, with growing digitalization trends, the logistics and supply chain industries need to redesign their strategies and monitor upcoming challenges and opportunities for growth.