admin Today’s businesses run on logistics. The backbone of any successful organization is its strong and robust supply chain operations. Interestingly, the concept of logistics stems from military operations. One could argue that Napoleon Bonaparte was one of the greatest logisticians in history. His axiom that “an army marches on its stomach”—that is, keeping forces well-provisioned is fundamental to success in war— is probably what marked the birth of logistics.
In the current era, the term “logistics” applies to the reliable movement of supplies and finished products. According to a study done by Statista, U.S. businesses spent $1.63 trillion on logistics in 2019, moving goods from origin to end user through various supply chain network segments. By 2025, a total of 5.95 trillions of ton-miles of freight will move across the United States.
Recently, the logistics industry has faced unprecedented yet inevitable challenges. The most impactful one being the Covid 19 pandemic. However, one cannot ignore the impact of the issues as well, such as the Ever-Given vessel stuck in the Suez Canal or the ongoing war in Ukraine. These challenges have led to large scale supply chain disruptions, confusing new rules and restrictions, and tumultuous shifts in customers’ demand.
The logistics industry however has gotten through the worst, and industry leaders are now ushering in a new era with new technologies, practices, and standards to carry it.
- Cloud Based Systems and Integrations
The cloud is revolutionizing the way businesses approach data integration and is assisting them win the age-old battle against keeping data in silos. Cloud integration and cloud data integration tools have opened a whole new world of opportunities for organizations that are struggling to connect remote systems. These cloud-based systems and integrations allow logistics businesses to streamline their workflows, hold and transfer information faster and with greater security, and even have better control over their finances. Many financial service providers have taken up the responsibility of assisting carriers with custom technology integrations. What this ultimately means is that businesses can save a lot of time, save money and develop smoother internal processes.
- Autonomous Vehicles
An autonomous vehicle, or a driverless vehicle, is one that is able to operate itself and perform necessary functions without any human intervention, through ability to sense its surroundings. An autonomous vehicle uses a driving system that is fully automated in order to allow the vehicle to respond to external conditions that a human driver would manage. These autonomous trucks are already beginning to run under “supervised autonomy,” and it is only a matter of time before that supervision becomes redundant. If they are appropriately designed and tested, these vehicles have the potential to be safer, less expensive, and easier to manage than vehicles that are operated manually. Consequently, this means that operating expenses become lower, roads have a higher safety, and vehicle operators can find new positions at a higher level and with better remuneration in their respective companies.
- Real Time Analytics
Real time analytics is the discipline that applies logic and mathematics to data to provide insights for making better decisions in a quicker fashion. For some use cases, real time simply means that the analytics is completed within a few seconds or minutes after the arrival of fresh data, making it seem almost instantaneous. With the advent of RFID chips, getting this real time data has become easier. An RFID means Radio frequency identification which uses electromagnetic fields to automatically identify and track tags attached to objects. Managers and industry leaders can inform customers precisely where their products are and how long it will take it to receive them. They can identify and predict issues and hurdles before they happen. Even if they were unable to predict, it gives them a chance to fix and resolve them faster. And they can even pinpoint disruptions in productivity or efficiency, helping them to create the perfect company from the ground up.
It is hard to pinpoint every major or minor obstacle in supply chain or logistics. There is always a possibility of a black swan event on the horizon, like the Covid 19 pandemic. However, even considering the most unexpected events, the logistics industry is going to keep advancing and come up with newest and better ways to handle unpredictable situations. If you are a business owner and want a competitive edge over others, you must keep one thing in mind, without efficient logistics, it is nigh impossible for a business to win the profitability or success war.
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