Sales and Fulfillment

The future of logistics and transportation management is now: Digitalisation trends to watch

There was a time when logistics was seen as a backend operation resistant to digitalisation. Over the last ten years, the world has witnessed a complete digital transformation in logistics, supply chains, and business operations.

From AI-powered predictive analytics to delivery drones, from secure digital transactions through blockchain to completely automated warehouses, the integration of digital technologies into logistics and supply chain management is critical in keeping pace with the immense consumer demands and cut-throat competition in an increasingly digital world.

Automation

Automation and digitalisation are crucial for digital transformation. Together, they streamline processes, enhance business agility, boost precision, and elevate customer experiences. This is why LSPs are increasingly investing in Automated Guided Vehicles (AGVs), drones for last-mile delivery, and automated inventory management systems in warehouses. We can only expect this investment to grow in the coming years. Here are some of the ways automation is transforming supply chains:

Robotic Process Automation (RPA)

While RPA focuses on automating digital operations, effective implementation reduces labour costs, increases accuracy, and improves the efficiency of logistics and supply chain operations. Here is how RPA can enhance various operations in supply chain and logistics:

• Automation in stock level monitoring, order processing, and inventory forecasting, reducing errors and ensuring optimal stock levels.
• Tracking of shipments and real-time status updates for relevant stakeholders about any delays or issues
• Analysis of data to optimise delivery routes and schedules, considering factors like traffic, weather, and delivery windows

Automated Guided Vehicles (AGV)

AGVs follow predetermined paths in warehouses and within other industrial locales. They replace forklifts, conveyor systems, or manual carts. AGVs can be used for a variety of applications, such as transporting materials from warehouses to production lines without human intervention, and ensuring production lines are always well equipped.

Automated Storage and Retrieval Systems (AS/RS) and Goods-to-Person (G2P) technologies

AS/RS systems, such as those developed by Dematic and Honeywell, or the G2P systems, improve operational efficiency and integrate seamlessly with Warehouse Management Systems (WMS). These systems provide real-time data and analytics to optimise warehouse operations further.

Predictive data analysis

Predictive analytics has reshaped supply chain visibility forever. Advanced tracking technologies, such as Internet of Things (IoT) devices, provide LSPs real-time visibility and control across operations using tech such as sensors and RFID tags. This helps LSPs monitor product conditions, prevent theft, and ensure that they are always compliant with regulations. It also increases precision in inventory and shipment management based on customer demands by predicting consumers’ buying behaviour. This leads to on-time deliveries and better operational decisions across logistics networks.

Predictive data analysis optimises transport management systems to forecast future disruptions, enables pre-emptive maintenance using AI models, and gives companies more time to adjust to unexpected conditions.

Artificial intelligence and machine learning

AI and ML algorithms can analyse massive datasets and thereby greatly enhance the decision-making abilities of logistics companies. They optimise route planning, forecast consumer demands, and streamline operations by constantly increasing their database and adapting to dynamically changing patterns and variables.

Multimodal Transportation

Shipping cargo over long distances around the world requires a combination of different modes of transport. For example, a particular shipment may involve cargo, followed by rail carriers, and finally, a freight carrier. Needing to coordinate multiple shipping contracts and carrier companies can complicate freight logistics for shippers. Multimodal transport brings communication down to a single contract, which would mean better overall control over transit for the shipper.
Giving a single carrier control over the whole freight assigns greater accountability on the carrier, better accessibility for the shipper, and ensures that shipments always meet their deadlines.

Emphasis on sustainability

Companies aiming for long-term sustainability cannot ignore environmental regulatory compliance and innovate to minimise the ecological consequences of their operations. Over 100 billion parcels are shipped worldwide every year, contributing significantly to global CO2 emissions. Estimates range from 5.5 to 11 per cent, including emissions from logistics locations.

While considering electric vehicles and drones for short distances, the industry is displaying an interest and investment in zero-carbon solutions such as biofuels, ethanol, and electrofuels. However, these technologies come with their own drawbacks, such as availability and soaring costs. This is why many companies are adopting carbon-offset strategies instead, such as direct contributions to environmental projects or including carbon-offset options at customer checkouts.

How can Infosys BPM help with managed logistics services?

Infosys BPM enables organisations across the globe to transform their end-to-end logistics processes. Integrated logistics platform implementation will help you improve your delivery performance, reduce costs, optimise your assets, and ensure environmentally sustainable logistics and supply chain operations that will reduce your overall carbon emissions.