Staying afloat in a highly competitive environment is difficult nowadays for logistics and transportation companies. Those who still didn’t make their processes digital have to do it right away. This is not just a fashionable trend but an absolute necessity, because the use of advanced technologies is becoming more and more relevant each day. If you don’t want to make mistakes or lose your reputation and want to deal with delivery problems at once, you need to pay attention to the optimization of the supply chain as well as follow logistics industry trends. Thus, you will be able to adopt those IT innovations that reduce costs and enhance the delivery process. And, as a result, your business will thrive.
The world is changing rapidly, and a lot of new technologies occur each day. Logistics software development is evolving as well, and nowadays, companies can utilize those features and software that were not ubiquitous or even possible before. Therefore, in this article, we will look at the logistics trends that are popular in 2022 and find out how they can boost your business.
Sought-After Logistics Trends That Lead to Optimization
Modern businesses need to understand why this or that trend is used by a major part of logistics companies and follow up the news of the industry in order to meet specific business needs faster and more effectively. Some of the logistics industry trends became sought-after in recent years and still help companies to improve their services with the potential they offer.
Digital Twins and Digitization of Overall Processes
The more processes are transferred to digital, the faster and more efficient the workflow of your business is. Digitization opens a door to optimization and automation, which lead to time and cost reduction. And, eventually, it can even lead you to digitalization of most of the processes of your business. That is why digital twins technology is one of the trends that you need to pay attention to in 2022.
With the digital twins technology, you can replicate physical objects, whether it’s a product or a building, and create a mirror of the processes in order to test them and be aware of possible drawbacks or be able to minimize disruptions of future operations. It can greatly help you in fulfilling the needs of your business. For example, it can greatly enhance shipment protection by collecting product and packaging data as well as optimize design and performance by creating 3D models to support infrastructure and experiment with layout changes. As a result, it can even be transformed into the solutions that are used in the delivery process. Thus, such solution as a multi-modal transportation management system can help you get real-time information about the vehicle’s status, traffic, and other details to create a dynamic delivery network and be able to act on the spot.
The technology is rapidly becoming mainstream, so there is no question of whether you should start using it now or not.
Read Also How Document Management Systems Allow Logistics Companies Adapt to Ever-Changing Business Environment
IoT and Real-Time Supply Chain Visibility
We brought up the topic of real-time data, so it is necessary to talk about the Supply Chain Visibility (SCV). Real-time information is what both customers and carriers need. A customer wants to see where the product they ordered is at the moment, while a driver needs to know how they can deliver the order safely and as fast as possible or if they have time for another delivery. There are a lot of logistics software development services and solutions that help logistics companies use the IoT sensor technology and cloud services as well as connect all the tracking devices into one monitoring system. Delivery management system is one of the examples that can be used to follow the industry innovations.
Driver Retention and Autonomous Vehicles
If you simply don’t have a driver to deliver your goods, a supply chain breaks down. That is why you need to have control over your trucks and drivers. It is important for you to know how much goods your company is capable of delivering and if the numbers can drop because of the shortage of employees and resources.
Driver applications and GPS vehicle tracking solutions can greatly help you in this case. If you don’t have your own app or don’t want to use third-party ones, it is possible to get help from an outsourcing company and ask to develop logistics software for your business considering all your needs, requirements, and optimization strategies you have in mind. Software application development for logistics requires considerable expertise, which is why you can be sure that you get fully-functional logistics management software with real-time fleet management, route optimization, and other useful features. Besides having needed software and applications, you need to think about implementing driver incentives as well. It will calm down insecurities your employees may have about pay or safety matters.
With the changes happening in the automotive industry over the last years, all the futuristic mechanisms and vehicles that we saw in the movies are now becoming real. Many companies are testing drones, sensors, self-driving trucks, artificial intelligence (AI), and other autonomous vehicles and mechanisms to determine if they can improve service and efficiency. Although companies are still trying to adapt to all these options, you can hop on the train and join them in implementing new processes, because the future is already here.
Read Also Why Custom Software is the Way Forward within the Logistics Industry
Eco-Friendly Solutions and Greener Logistics Operations
Implementing eco-friendly solutions is what defines the logistics companies of the future from those who are stuck in the past. Most of the supply chain activities affect the ecological footprint, and consumers prefer to choose brands that are aligned with their values. It’s not just a sensitivity to customer expectations, this is a must. Besides that, paying attention to your actions leads to a win-win solution. A client is happy about your decisions and will support you more, while your company will be able to reduce waste and recycle where possible. You can also cut down on the overall environmental impact of the packing materials you use.
There are not only self-driving vehicles but also electric delivery options that started to take over the place of the old fossil-fuel-operated vehicles. Most of the companies are already using robots in warehouses to sort and pack delivery products. It helps them to cut wage costs, minimize human interaction and contacts, and save power consumption, because robots can work in the dark as well. All these implementations lead to optimization of the supply chain and infrastructure. It is also possible to use solar panels, drought-tolerant plants, and low-emitting paint to make your warehouse greener.
While many consumers react skeptically and even negatively to this word, associating it with cryptocurrencies, the technology can be used in many ways. And not all of them bring downsides. If talking about logistics, blockchain helps to manage the entire supply chain from factory to consumer. All the details about the product, including its lot number, expiration and shipping date, manufacturer, etc., are stored in the database and allows you to track the product at any stage. Besides that, it shortens delivery time, reduces errors, and securely validates document transactions. Many logistics companies are not sure about this technology, while others are already successfully using it and bringing the best service to their customers.
What to Pay Attention to When Implementing Logistics Trends
It can be difficult to choose which innovation to follow and decide how it can help your business before implementing it into the logistics activities. That is why it is always important to take a look at your needs, requirements, and goals. In order to make the right choice, we recommend to consider the following:
- Explore if the option you chose reduces your route and shipping costs;
- Find out if the new industry change helps in managing your logistics chain as a single entity;
- Try to predict and balance peak periods and slack seasons to understand which optimization will be better and when;
- Gather your team and decide if the way you follow is the one that will boost your efficiency.
Each year more and more possibilities occur, and you can use them for the benefit of your business. That is why it is necessary to keep up with the changes and follow the trends. Companies need to be in the constant search of faster and cost-efficient solutions to keep their clients satisfied. The industry is changing and will continue to produce new challenges and exceed expectations, which is why you should always be ready to improve supply chain services and move towards operational excellence.
If you are looking for an outsourcing company that has experience in custom software development for logistics and can help you in following some of the trends, please contact us.