How technological advancements will impact logistics in 2023 and beyond


Technology is advancing more quickly than ever these days, despite market changes and global headwinds. Numerous aspects of the business setting have been impacted, and customer behaviour has also changed. The need for quicker deliveries has forced logistics companies to alter their business models, adopt cutting-edge technology, and even change their strategies. A need for a strong logistics model emerged owing to labour shortages, lockdowns, closed borders, and restricted movement, which were highlighted by the pandemic.

The pandemic has so far had an impact on the logistics industry’s two most important operations: warehousing and transportation. Estimating demand, allocating capacity, and distributing goods across sectors and regions, however, continue to pose significant challenges as the economies recover from the effects of the pandemic. This is where technological advancements come to the rescue.

Technological advancements in logistics: how the sector is changing

The movement of goods from producers, retailers, or wholesalers until they reach end users has changed as a result of modern business practices and technological advancements. The transition from manual to automatic technology, as well as advancements in communication and information technology, have had a significant impact on the logistics sector.

Moreover, improved technology has reduced costs and errors while increasing productivity in the logistics industry. All facets of the logistics sector—trucking, international shipping (by air and sea), warehousing, supply chain management, and shipment tracking—generally benefit from these technological developments. In logistics, typically there are two areas of application: hardware applications and software applications when looking for technology for an operational advantage.

Improved transparency and visibility

Knowing the location of the cargo or shipment is a new fundamental requirement for efficient processes. Real-time visibility, one of the most significant advancements in recent years, allows them to operate at their peak efficiency. Numerous cloud-based software programmes are available on the market offering real-time updates on the location and condition of the transport vehicle. They also consider data from telematics systems, including traffic or weather forecasts, to provide an estimated arrival time (ETA). As a result, the complete transportation process in 2023 and beyond will increasingly be transparent, monitored, and performance-analysed thanks to cloud-based tools. These tools will ultimately assist transportation service providers in maintaining their service levels while enhancing the working environment for their drivers.

More focus on sustainability

Today, being environmentally responsible is the top priority for businesses. Particularly for startups, sustainability and the need to lessen their carbon footprint are integral to who they are. Many businesses are collaborating with partners who support environmentally conscious practices for logistics management in order to incorporate sustainable practices in supply chains and logistics. They rely on third-party logistics (3PL) companies to complete deliveries using electric cars, drones, parcel lockers, bicycles, and other means. Additionally, businesses are using more environmentally friendly and biodegradable packaging materials to fulfil their sustainability goals. Moreover, to fulfil the vision of zero waste, phasing out single-use, thin-film plastics in lieu of recyclable materials is becoming the top priority of logistics firms. In the modern “smart” warehouse, sustainability is becoming increasingly important.

Faster delivery speeds

Consumers today anticipate receiving their deliveries much more quickly, on schedule and more flexibly. As a result, the industry is under more pressure than ever to find ways to cut down on delays and guarantee almost instantaneous delivery. Modern technology has raised the bar for quick deliveries to a greater degree than ever before. By selecting delivery partners who offer dynamic route optimization and real-time exception management, several e-commerce companies are capitalising on the speed-to-market last-mile trend. The companies are now able to foresee roadwork and congestion in real time thanks to advancements in highly sophisticated satellite navigation systems. They can avoid delays and complete the deliveries more quickly as a result. Improvements in technologies like RFID, barcode scanners, the IoT, and automation AI are also further streamlining the logistics processes for businesses, increasing productivity.

All things considered

In recent years, one of the Indian economy’s fastest-growing sectors has been the logistics sector, which is expected to grow even faster over the next five years. The future growth of the logistics sector is anticipated to be fuelled by a rapid rise in Indian consumers’ reliance on e-commerce, as well as the expansion of the small and medium enterprises (SMEs) and business-to-business (B2B) segments and government efforts to boost exports.

The centre recently launched the National Logistics Policy to lower the cost of logistics in an effort to increase the effectiveness of the Indian logistics sector. Despite the government’s proactive efforts to provide assistance to businesses, proactive private involvement in technological advancements, innovations, and investments is required. The adoption of cutting-edge technology is providing enormous benefits to the logistics sector, which will further expand as new developments are made.



Views expressed above are the author’s own.



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