The logistic market was one of the most impacted markets in the pandemic. More and more self-isolated people started to buy products online, and the retail industry needed to upgrade all the welfares.
The Logistics trends in 2021 were formed mostly by the necessity to deliver more products in less time, often with closed borders. Moreover, innovation technologies guide the changes in logistics in the upcoming years.
The transportation industry is worked mostly with e-commerce. It is one of the most rapidly growing markets in the world economy. According to analysis, the logistic market will be expanding to more than $12 trillion by 2023. Next year, we will see the continuous growth of using artificial intelligence (AI), machine learning and data science in transportation.
AI can help make supply chains more efficient and reliable with inventory management and supplier selection. AI already impacted the transportation sector in the last decade. New transport technology in implementing AI was influential in the pandemic, as many people in management positions started to work remotely. According to the research, using AI in logistics can increase companies’ gain more than 50% a year. Big companies raise the investments in AI technologies for saving money and time in the future.
Customers expect packages to arrive quickly—sometimes within a day. However, this can be difficult to achieve. In an effort to increase visibility throughout the supply chain, blockchain will be adopted by more companies. Blockchain, which distributes digital data securely, will take the place of outdated communication methods until they become obsolete. Blockchain is a largely growing technology in the last few years. In 2021 it indicates that more companies will use blockchain to collaborate with shipping lines and vendors to use data stored in a single location and thus become more transparent to provide great visibility to their end-users. At the same time, blockchain is cost-effective and fast.
Big data analytics
Data analytics provide actionable insights for the improvement of warehouse productivity, performance management, and optimal utilization of logistical resources. The data obtained from monitoring position and weather along with fleet schedules help optimize routes and delivery planning. In 2021, businesses more often use big data analysis to form a new transportation system. All the logistics statistics are essential for planning future deliveries and understanding what goods are needed for the market.
Technology and 5G
Technology is the enabler of the transformation. I highlighted this trend in last year’s article I wrote about 2020 trends. Since then, and despite COVID-19, the world is seeing a massive development around 5G, the deployment of 5G and its use cases and currencies are widespread. By the end of this decade, 5G will have changed the business landscape as we know it.
Omnichannel Services and contact less deliveries as the new normal
Today’s customers want flexibility in their orders. Those companies that can provide an omnichannel experience will be able to best satisfy their customers. The omnichannel approach offers a personalized experience for customers as marketing, sales, and logistics combine efforts. Logistics and supply chains are responsible for the consistent fulfilment of orders that come from any of the channels. No-contact delivery is the new normal, offering various drop-off delivery options, borne from customer desires to minimize physical contact. Significant development is in motion to push robotic deliveries into its next phase using robotics and artificial intelligence-based applications.
These trends will continue throughout the year as the logistics industry seeks to meet regular demand, on top of any additional demand created by the distribution of the vaccine, particularly in the first half of the year.
Your Trusted Partner
At ABDUi , we provide expertise and customer service with fast-growing, complex, and high-value supply chains. ABDUi, a complete logistics solutions provider offers end-to-end freight forwarding services including logistics We offer a wide range of services in the field of International Freight Forwarding, Transportation, Custom clearance, Warehousing and distribution in the Middle East. If you are looking to streamline your logistics operations then ABDUi is the right partner to boost your business. If we can be of assistance, please email us at [email protected]