The digitisation of various sectors across India was sped up owing to the pandemic and these upheavals have minimised the pain points. In just a few months within the lockdown, the share of digital and digitally-enabled products in the portfolios of various companies accelerated by seven years. Technological advancements not only enabled the logistics sector to standardise its services but also empowered SMEs to streamline their processes. Such improvements became noticeable as the proprietors trusted the efficiency of big data, AI, and automation.
Tech-enabled logistics help companies overcome the unpredictability of a carrier’s demand curve with optimal usage of cloud-based SaaS solutions and timely fleet management.
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New-Age Technologies in Logistics Sector
India’s logistics sector accounts for a staggering 5% of the country’s GDP today, while providing livelihood to nearly 2.2 crore Indians. No doubt there is a massive demand which backs this industry and end consumers expect seamless, time-efficient service while retaining operational coherence. To make this possible, technological arbitration helps in the following ways:
Effective Matchmaking
Even as recently as 2021, as much as 90% of the logistics sector was reported to be largely unorganised. Through disciplines such as data analytics, machine learning and AI, the landscape of logistics has changed. Tech-enabled solutions have allowed for better visibility between supply and demand, improving matchmaking, overall efficiency, vehicle utilisation and making logistics highly accessible.
Real-Time Tracking & GPS
Real-time monitoring is made possible by high-speed internet and, following the rollout of affordable 4G connectivity, e-commerce in India has skyrocketed. Customers value knowing where the goods are at every step of the journey, which boosts trust. Additionally, first, middle and last-mile delivery persons also benefit from knowing the detailed directions to the location.
Cloud-Based Solutions
Cloud-centric solutions allow freight companies to access data and run operations remotely. Using these services, the market competitors within the Indian logistics sector have managed to establish a hybrid system. It enables storage of business-sensitive information in numerous private servers which can only be accessed by authorised entities. Hence, this secured technology provides access to real-time data, cutting down the need for on-site IT staff.
Logistics Sector Visibility Platforms
According to the McKinsey supply chain 2022 report, digital tools have been critical in improving the resilience of the supply chains of companies. In this context, logistics visibility platforms offer businesses greater control and visibility over the status of their shipments. As a matter of fact, this technology is vital to improve on-time delivery performance and reduce the risk of lost or damaged shipments.
Artificial Intelligence
OpenAI’s ChatGPT prototype has grasped the public consciousness and fascination, working as a hands-on demonstration of how AI has evolved. It has sparked conversations around harnessing this technology to benefit various sectors, including logistics sector. AI can be used to improve data analytics, decision-making, and customer service and reduce last-mile delivery gaps, to name a few benefits.
Disrupting Logistics – The 4 Categories of Digitalisation
The logistics business is on the verge of a revolution because of disruptive technological advancements. These innovations fall roughly into four categories:
Transparency and Data Automation
Appropriate data optimise delivery route networks and enables real-time delivery tracking. Additionally, the incorporation of modern technologies like omniscient control towers, augmented reality, etc. has made it possible to share real-time data with stakeholders.
Unique Alternatives for Transportation
In India, pilot programs for the use of robots and drones in the logistics sector have begun. Additionally, green mobility has gained massive traction in recent years in a bid to meet India’s 2030 decarbonisation target.
New Business Models
New business models such as quick commerce have been made possible following the advancements in logistics technologies, heavily altering traditional procedures.
Digital Platforms
Digital platforms offer the biggest disruption to the industry by sharing capital expenses across sectors like fleets and warehouses. This not only allows new companies to enter the ecosystem but also creates chances of coining business models.
A Game Changer for the Industry
Today’s tech-enabled logistics sector can remotely control numerous supply chains. It not only reduces the overhead costs of the companies contributing to their profitability, but also helps in living up to customer expectations. As technology continues to evolve, changes in the space are likely to bring forth more innovations and overall development of the entire industry in the near future.
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