Technological innovations that are transforming shipping logistics

Shipping logistics is a compounded process with several moving parts. The demand for logistic services soared to an all-time high in 2020, nearly doubling its 10-year value.

Logistics Business’ report on the demand for UK logistics showed that 40% of all take-up from 2020 is accounted for by e-commerce, an industry that’s set to earn a 22% increase by 2023.

Moreover, the pandemic response has created a bigger surge in demand for faster dispatch speed of logistics operations.

 This includes operations for parcel delivery and fulfilment, meal kit operators, and medical suppliers, as previously discussed in Selazar’s article 'Dispatch Speed is Your Competitive Advantage’.

The logistics process involves planning, sourcing, and transporting products, among many other things. Indeed, it would be a very complicated line of work without technology. 

Contending with rapid changes and non-stop operations across borders makes human error much more likely.

Selazar prides itself on its tech first approach towards fulfilment, such as digitally tracking inventory and automating customs paperwork while providing live updates in real-time to customers.

Innovative stock management and smarter processes are crucial to effective final-mile operations that increase customer satisfaction.

Fortunately, the increasing demand for logistics is happening alongside the rise of new technological innovations to help speed things along and simplify the process.

Blockchain technology

What started out as a technology for Bitcoin and other cryptocurrencies, blockchain technology has made its way into the logistics and supply chain industry. 

It allows data to be stored on a shared global network, giving multiple companies and stakeholders real-time access to valuable information without letting them alter any of it. 

It helps streamline the flow of operations and improve transparency throughout the entire supply chain network. 

Tech expert Vitaly Kuprenko’s write-up about the pros of blockchain emphasises how this technology reduces operational expenses too. He attributes this to blockchain’s ability to eliminate the need for intermediaries, thereby diminishing commission expenses.

Another feature of the technology that Kuprenko talks about is the security of transactions made within the blockchain; as it’s impossible to change or edit a transaction once it’s documented on the network, leading to a reduced chance of fraudulent activities.

Telematics

Telematics, or the use of telecommunication and information technology together, has been used in several industries for many years. 

The logistics industry has most certainly benefited from it. Telematics streamlines the management of various warehouses and large fleets. And as the logistics industry will continue to grow, this technology will become increasingly important.

Two of telematics' principal contributions to logistics are product transparency and traceability. When integrated well into logistics operations, telematics technology lets companies track where a given shipment is in real-time. 

Selazar’s customers are able to track shipments from intake all the way to the moment of delivery, while managing and forecasting inventory levels for suppliers. What’s more is that future fleets are projected to be made up of connected vehicles, making them ready for telematics.

In fact, Verizon Connect’s post on connected technologies highlights how the connected truck industry in the European market will reach £9.70 billion by 2023. This is at a year-over-year rate of 12% from 2018. 

With a mix of built-in tracking devices and connectivity features in future fleets, it’s incredibly beneficial to start including telematics in your fleet management now. This gives you a competitive edge, as well as a more efficient fulfilment network.

Lots of business newcomers like to go here and click for parcel forwarding service that makes entering the logistics space easy. Also, telematics is a popular choice when it comes to investing in processes that help reduce costs and increase the efficiency of operations.

Expanded automation

It’s said that the logistics automation market is expected to reach £88.24 billion by 2027, from £23.5 billion in 2018. This makes it one of the leading trends in the logistics and supply chain sector.

From self-driving vehicles and warehouse automation, to industrial robotics, automation is set to dominate the logistics industry. For one, giant online retailer Amazon, is using Kiva robotsto automate the warehouse selection and packing processes.

Wearable devices

This may be the next step after the use of smartphones and tablets, but it’s seeing a surge in the logistics industry since it literally frees up more hands. 

Using wearable technology, employees can access data and information almost instantly, without having to review and create paperwork. This maximises manpower and time.

One example of how wearable devices are used (according to Food Logistics) is the integration of voice technology with wearables:

A warehouse associate could drop a cart at the end of an aisle and then speak a command into their wearable device, which would then trigger an automated machine to pick up that cart for the next step in the shipping process.

Green logistics

“Green'' or environmentally-friendly logistics isn’t just a trend, it’s part of a global movement. 

Fortunately, this move to help conserve the planet is cost-effectiveand one that can even help with customer retention. Contrary to popular belief that going “green” costs more, opting for a more sustainable route actually saves you money. 

On top of this, 88% of customers prefer companies that are environmentally friendly; a key indicator on top of corporate responsibility that Selazar has adopted within our core values. 

Green logistics pushes you to reduce waste and increase the efficiency of warehouses, vehicles, and machinery, and this can reflect in leaner expenditures. 

A great example of this is UPS' investment in 10,000 electronic delivery vehicles, whilst also decreasing their overall costs on petrol  and maintenance. 

More companies “going green” will enjoy an improved reputation and bottom line. In fact the global green logistics market is predicted to reach 1.7 billion by 2027. 

Keeping green will be a much bigger factor of buying decisions for customers and company partnerships moving forward.

Logistics as we know it will continue to evolve as technology develops; and it will help create a more connected, sustainable, and integrated global community. 

Selazar’s tech-first approach proudly offers dynamic fulfilment in a competitive e-commerce market.