- June 18, 2021
- Posted by: Temitayo Omodehin
- Category: Consultation, Delivery, Logistics
Humanity’s progress is marked by technological progress. The constant improvement in the systems, hardware, and interfaces we use daily has brought significant ease to our lives. In today’s global village, it is easy to communicate and facilitate transactions with individuals all over the world. As a result, technology serves as one of the key drivers in the world of logistics today. We will observe some of the roles technology plays in aiding logistics.
THE IMPACT OF TECHNOLOGY IN LOGISTICS
According to a report by Ti, the global e-commerce logistics market is expected to grow at a CAGR of 8.6% between 2020-25. Online retail demand and heightened consumer requirements for rapid delivery pushed the global e-commerce logistics market to grow by 27.3% in 2020.
With the advent of the internet and social media platforms, numerous marketplaces exist for customers and businesses to connect. In addition, the use of websites, blogs, social media marketing, and ads, has made it easier than ever for customers in need of services to meet with respective providers.
2. Real-Time Data Integration.
The use of location-based tracking allows logistics businesses to manage their networks in real-time. This data provides for transparency in the delivery process. By allowing the customer access to real-time data such as the location as their package moves through the supply chain, logistic services can provide peace of mind to their users.
The use of tracking software helps manage customer expectations. For example, when transporting sensitive parcels and goods, tracking and other integrated security services help provide a sense of security to logistics agencies. It also helps to reduce the risk and uncertainty the logistics companies take on when doing business.
4. Enhanced Consumer Demand
The world today moves fast, and consumerism is at an all-time high. Technology has fostered a global marketplace and has continued to connect people in new ways. In turn, this has led to an increase in the demand for goods and services. Which also provides an increase in business for logistic agencies.
Over the years, advances in AI and robotics of robotics have traditionally benefited the manufacturing industrial complex. These days, companies like Amazon have applied AI and robotics to create more efficient warehousing and package handling systems. Automation reduces the occurrence of mistakes and prevents dangers to human life when handling hazardous substances. It also provides scalable and far more efficient methods.
6. Virtual Transactions
The digitization of the financial market space has led to the mass adoption of virtual means of economic interactions. For example, net banking, RFIDs, virtual fuel cards, and many more technologies have all but eliminated the need for in-person cash transactions.
7. Route Optimization
Knowing what to expect and how to navigate safely and effectively is crucial to maintaining scheduling challenges. Real-time tracking and GPS services allow couriers and truckers to traverse cityscapes to meet scheduling constraints and delivery deadlines.
Technology plays a crucial role in all stages of the supply chain process. From reducing liabilities through staff monitoring to better warehousing techniques, technological advancements forge new paths to aid logistics agencies in their business. The future is evolving, and technology evolves with it. The ability of companies to embrace and utilize the coming strides into their business will determine their viability o the marketplace.
Are you looking to start a logistics business? Or do you wish to find new ways to incorporate technology into your existing logistics service? Contact Catalyst Business Consult on +234 816 272 6997 today.