Top 10 Logistics trends 2020

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The year 2019 marked an important shift in the transport and logistics industry with a series of new technology solutions that were born and applied practically, driven by market trends and needs. PwC commented that never before in modern history have political, economic, social, technological, environmental and legal changes have had such a great impact on this segment of the economy today.

As the complexity of modern logistics and transportation grows, it is important to understand what is the short-term focus - the long-term and what is invested in. Moreover, the 4.0 revolution and the popularity of IoT systems also require Logistics enterprises to capture and make the best use of the huge data sources coming from all links in the Supply Chain.

This is why VILAS has summed up the top 10 Logistics trends in 2019 and is expected to be increasingly widespread in 2020. To help readers have a more specific view in identifying forces. The key is changing drastically the logistics industry.

1. Digitizing the supply chain (Digitalization)

Digitization is the process of applying new technology solutions along with other resources to redesign supply chain processes. Digitization can help improve the speed, initiative, and resilience of supply chain operations, leading to greater customer responsiveness and ultimately higher sales. In order to fully exploit the benefits of digitalization, companies must redesign supply chain strategies rather than simply apply some technologies to processes to improve the performance of an organization. power function.

In the field of digitalization, the Internet of Things (IoT) holds a prominent position as a technology solution with high applicability in the field of Logistics. IoT is a system of interconnected computing devices that allows data transmission through the network without manual input. IoT helps companies monitor inventory, manage inventory, optimize train routes.

2. Self-driving vehicles

With technological advances in AI as well as increasing investment in the development of sensors and visual technologies, self-driving vehicles will soon transform the way vehicles are assembled, operated, and used. and maintenance. From trucks to end-stage transport robots, self-driving vehicles will contribute to changing the way Logistics works by opening up higher levels of safety, efficiency, and quality.

In Logistics, autonomous transport has gradually been adopted in warehouse and storage environments over the past few years. The next evolution will be the deployment of self-driving vehicles in public and public spaces such as on highways and city roads to further optimize logistics operations and increase safety. However, for the widespread deployment of self-driving cars, delivery robots and other self-driving vehicles, it is necessary to overcome the challenges of government regulation, social acceptance, and safety concerns.

3. 3D printing technology (3D Printing)

The 3D printing process, also known as additive manufacturing (AM), is a process in which the printer reads the technical blueprint and prints with the supplied materials and creates a final 3D product by overlay printing. 2D layers up together during printing. Printers are capable of creating extremely detailed and complex design levels that may be difficult or impractical to create using other methods.

Increasingly encouraged, especially in the context of increasing customer demand for highly customized products, generating less waste, producing and distributing concentrated partitions and technologies. 3D printing will contribute to the impact of the logistics industry by diversifying production strategies. Some companies may stop traditional manufacturing & innovation processes and will instead combine 3D printing technology with mass production techniques. Logistics service providers can manage more complex production networks and take advantage of the 3D printer network to provide new Logistics services.

4. Data analysis and Logistics Big Data

Thanks to the increasing size of the digitization process, we are able to obtain an enormous amount of data from various sources along the supply chain. Therefore, companies today often use Big Data - a large and complex data set - as the data source to perform analyzes, thereby predicting peak periods, supply shortages in the future and other forecasts. These forecasts help increase the accuracy when making strategic decisions to improve market position and bring significant competitive advantage compared to other competitors.

The application of Big Data and Data Analysis in the transportation industry is also helping some businesses make purchasing decisions more wisely. Moreover, according to The Council of Supply Chain Management Professionals, more than 90% of shippers and logistics companies consider data-based decision making to be extremely important. For that reason, Big Data-based data analysis will improve business quality and performance through demand forecasts, inventory management, route optimization, and effective labor management. ...

5. Artificial intelligence (AI)

Advanced AI solutions are being applied in many functions in the supply chain, especially warehouse operations. Artificial intelligence (AI) has contributed to transforming the way logistics providers work, as a result of a trend of automation and continuous improvements in computing techniques. AI will enhance human expertise through systems that help create new insights from Big Data and eliminate difficult tasks. In Logistics, AI will enable automation of support activities, forecasting, asset management in Logistics and creating new customer experience models.

The concept of AI robots and automation is also widely deployed in the supply chain. Current generations of robots are easy to program, flexible and the price will also be optimized. The role of robots is to support workers with repetitive tasks and challenging physical work.

6. Safety Logistics

With an increasingly strong Internet connection, cybersecurity concerns will also increase at logistics companies. Moreover, the protection of customers' personal data is a key concern making safety in transportation solutions one of the top priorities.

Ongoing attacks on the websites of large e-commerce companies such as Amazon, Walmart, and others have shown that cybersecurity threats are highly likely to happen to businesses. Those reasons have encouraged Logistics service providers to focus more on providing safe transportation and transportation solutions. In addition, logistics companies must also pay attention to the loss and damage of goods besides data theft.

7. Application of cloud technology platform in Logistics (Cloud Logistics)

Complex, variable work environments are the ideal environment for cloud technology applications. Not only does it allow a series of new business models based on the principle of viewing Logistics as a type of service (Logistics as a Service - LaaS). This platform also helps Logistics service providers can activate or deactivate customized services on demand (using pay-per-use method). This allows service providers to expand their model without requiring the traditional cost of developing, setting up and maintaining their own IT infrastructure.

8. Blockchain Technology

Blockchain and other distributed ledger technologies can remove significant layers of complexity from global supply chains. Blockchain can facilitate greater transparency among supply chain stakeholders, supporting the automation of administrative and commercial processes. The concept of smart contracts will also create development opportunities for new services and business models in the field of Logistics.

9. Sustainability

Stricter regulations and greater resource constraints make it imperative for logistics companies to find new ways to reduce energy consumption. In addition, increased awareness of sustainable development issues among consumers means that "green" transportation will be increasingly valuable.

The railway transport segment is considered to be the most environmentally friendly method because it is transported by electric trains. Air, sea and road transportation will face the growing burden of compliance with environmental regulations as well as the upgrading or replacement of fleets/fleets to meet the new standard. emissions. Logistics service companies may also be under pressure from customers to pursue a "green" roadmap.

10. Smart packaging (Smart Containerization)

The adoption of standard containers has changed the entire global freight industry, bringing major performance improvements and trade facilitation. However, the need to diversify container volumes and increasing cost and time pressures require new container formats and packaging processes, especially in the context of Logistics networks being general use and the same development of urban delivery. New forms of packaging are also essential to handle the volume of single orders shipped in e-commerce.

Source: vilas.edu.vn/top-10-xu-huong-logistics-2020.html

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