Logistics sector is going through an era of exceptional transformation as digitisation catch hold and customer prospects are evolving. Technology is shifting each facet of how logistics companies are operating. Innovative technologies are sanctioning greater competence and more collective working models. New players, whether they are start-ups or the existing industry’s customers and suppliers, are in addition shaking up the zone. Besides this Government involvement and operational flows between the regions and territories are too influencing the sector.
Here are the key disruptive forces that are evolving the logistics industry:
- Increase in the Trend of Online Shopping in Tier 2 & 3 cities
The development in logistic strategies and technologies is expanding the reach of e-Commerce in India rapidly. As a result most of the online shoppers belong to tier II and III cities. The innovation is not only lined towards buyers but strategies to bring in millions of sellers from tier II & III cities are also underway. The emergence of digital India initiative, more and more people are accessing the internet, gaining digital literacy and increased use of mobile phones thus encouraging the masses to explore the online marketplace and its potential. This turn is forcing the e-commerce companies in building communities on social media networks to leverage better understanding of customer needs to drive effective marketing strategies.
- Evolution Lead by IT & Technology
The evolution is garnered by evolving new technology and IT advancements. Over-the-road challenges such as surging demand amidst driver shortages may soon be addressed by profound technological advancement.
- On-demand Logistics Model
There is on demand model which helps in consumer satisfaction. The model helps in knowing the demands of the customers accurately so that the industry is able to flourish. As demand rises, fundamental distribution patterns are shifting—and radically so. In particular, customer demands for ever more rapid fulfillment is forcing businesses of all kinds to warehouse their goods ever closer to intermediate and end-customers.
- Logistic Cost
The supply chain industry incur a cost of logistics as the whole process have a lot of things attached to it such as warehouse, goods storage, delivery of the goods and many more. Fleet managers use big data solutions to optimize delivery routes. These solutions integrate data from several different sources in real-time such as GPS, weather reports, traffic data, road maintenance data, personnel schedule and vehicle maintenance schedule into a system that advises the vehicle to take the best possible route and reroute whenever needed.
- Infrastructural Developments
Any industry needs infrastructural development so as logistic industry. There should have ample infrastructure facility riding on various means form a logistics string for a seamless flow of goods and services. The infrastructure standing will trim down the outlay of investment in transportation and warehousing, thereby reducing the cost of logistics.
6. Goods Storage and Warehouse Facilities
Good Storage and warehouse facilities are the primary requirement of logistic industry. If we have a well organised warehouse and good storage facility them there is no chance of fault in the process of delivery. Warehouses have started installing sensors to collect data on the flow of inventory. This data helps those pinpoint bottlenecks that hinder the flow of inventory. Sensors can also be used to track the performance of workers in different areas of the warehouse and modify staff allocation for better ergonomics.
Today’s levels of disruption are unprecedented. Industry providers and those administering their own transport should rethink everything from warehouse locations to logistics technologies to fleet and carrier strategies. The big disruptors are the companies that leveraging multi-party networks, artificial intelligence and autonomous technology to change industries and to connect buyers and sellers, and match supply to demand in real time. Consumers are becoming accustomed to this new frictionless way of doing business. Companies need to decide whether to play “wait and see” or to act now. Companies should not only begin laying the groundwork for the technology, but also identifying talent in these fields and implementing training for existing employees whose roles are likely to be impacted by it. This will make the transition much smoother and more sustainable.