Tech Trends on Logistics’ Horizon
November 22, 2022 – The logistics industry continues to face challenges of operating costs, volatile markets and manpower costs. To anticipate ever-shrinking fulfilment and delivery timeframes from customers, the industry is turning to technology such as robotics, Artificial Intelligence (AI) and Machine Learning (ML) to become more responsive and adaptable.
Tech-focused solutions such as autonomous robots and automated, self-driving vehicles, drone delivery and location management systems are helping logistics players push the envelope. Taken together, these linked machine and data-driven solutions comprise the Internet of Things (IoT) in the logistics market. IoT in the global logistics market was valued at US$37.4 billion in 2021, and will see CAGR of 14.0% to be worth more than US$93 billion by 2028.
The emerging technologies offer many upsides. For example, self-aware machines and vehicles can navigate with high-definition cameras and sensors, to drive 24/7 operations that offer high accuracy and energy efficiency, allowing human workers to focus on other key tasks, while taking up less space in warehouses and environments where space is a premium. Forwarders are also scrambling to digitise processes, from customer engagement to communication and rate, capacity and allocation management.
As with other industries, technology adoption and automation will not come without costs. Already, labour management and workplace safety are emerging as key issues as players ramp up tech. Implementation costs, time and re-skilling staff on new systems will also put a dampener on adoption for some companies.
How can governments help hasten technology adoption by smaller logistics players?
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