The logistics industry is at the forefront of embracing new technologies to improve efficiencies and transparency. According to the Logistics, Supply Chain and Transportation 2023 report by Forbes Insights, nearly two-thirds of logistics executives say they expect technology to deliver significant productivity gains.
Here is our rundown of the five technologies that will have the greatest impact on logistics and transport in the coming years.
Trend #1 – The Internet of Things (IoT)
The first trend we cover is commonly referred to as IoT, or the Internet of Things. Although this technology is still fragmented, it is already on course to shake up the freight shipping industry. The type of technology IoT uses is comprised of a database, a reader, a chip and a GPS cloud-based system. These elements speak to each other, creating a detailed and valuable outlay of your operations. One of our readers described IoT as “a way of getting inanimate objects like parcels and containers, to send useful information about themselves automatically and autonomously directly to the internet.”
This new technology is referred to as radio frequency identification, and it enables the freight industry to effectively track their shipments, and the conditions of these shipments. Confirmation receipts and barcodes no longer require scanning, and the technology enables shipments to be received automatically. The advances in IoT have made it not only easier, but more efficient for a company to check on goods or a shipment. This can be accomplished 24/7.
Trend # 2 – Advanced Machine Learning
Advanced machine learning is one of the latest technologies providing the freight industry with a competitive edge. This technology analyzes data and enables business decisions to be made using patterns. The computers use dashboards and pre-determined reports to conduct sophisticated analysis. This provides market insight in the freight industry that allows companies to pivot to more efficient operations.
Human intervention is not necessary to analyze data due to the algorithms of machine learning. Machine learning is used in conjunction with supply chain management to turn passive data into targeted business intelligence. This improves incoming orders, the accuracy of forecasting, general performance, and predictability.
For example, by analyzing data on thousands of trucking runs, machine learning can recommend which routes are more productive, what conditions create problems, and it can pinpoint other inefficiencies. In maritime, machine learning can help companies choose routes, ports, and make other choices to increase their bottom line.
Trend # 3 – Cloud-Based Solutions
The freight industry will see major advancements as the capacity of the private fleets becomes more readily available. Freight companies will be able to immediately reposition any empty containers without expensive IT infrastructure investments. This will be possible by deploying pay-per-use services on the cloud. The combination of mobile applications and services based on the cloud will enable freight companies to cater to both large and small businesses.
Trend # 4 – Connected Applications
The freight industry requires a reliable and efficient means of transmitting data, and this is crucial for logistics. Technological advances will enable numerous applications to communicate with each other in intra- and inter-business scenarios and B2C and B2B. Although EDI has been used as communication for a long period of time in the freight industry, data transmission in real-time has been compromised due to the strictness of the standards and formats. JSON and RESTful Web services are capable of replacing EDI and are preferable for transmitting data. Mobile apps are capable of capturing data on-roads and on the floor. These apps will communicate with the existing systems and digitally transform the freight industry.
Trend # 5 – Security
Warehouse and Logistics Management Solutions are starting to use the internet and cloud computing to the transmission of data. This system and the corresponding software are able to prevent cyber-attacks much more effectively. Security in the freight industry is changing, and individual components are being constantly monitored for vulnerabilities.
Cyber threats can be effectively recognized, monitored and rectified to stop any possibility of a cyber threat. Regular testing and security audits will become a permanent part of the freight industry.
There’s no one-size-fits-all answer, but as you read about the developments above, you probably recognized areas where your operations could benefit. As we head into the second quarter of 2018, it’s worth perusing those avenues. You’ll be surprised how easy it can be.
Freight shipping companies must remain current with trends and advances. The best businesses must focus on their product quality, and the commitment they have made to their business associates and customers. As technology continues to evolve and advance, businesses must adapt and change with the times or become stagnant.
source: https://shippingandfreightresource.com, https://www.orange-business.com
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