Logistics Industry Trends for 2021 (part 2)

Logistics Industry Trends for 2021 (part 2)
With heightened levels of consumer demand not looking to slow down any time soon, it’s time to continue with our review of 2021’s hottest trends in the logistic industry.

Green Logistics

Green Logistics is the most anticipated and novel rend for 2021, not only because climate change is a vital part of the social and political discourse but also for the consumer’s ever-increasing awareness of their impact on the environment as they search for cleaner alternatives for the planet.

Its main objective is to coordinate the activities within a supply chain in such a way that beneficiary needs are met at "least cost" to the environment. It is a principal component of reverse logistics. In the past “cost” has been defined in purely monetary terms, whereas "cost" can now also be understood as the external costs of logistics associated with: climate change, air pollution, dumping waste (including packaging waste), soil degradation, noise, vibration, and accidents.

The challenges ahead are clear: reduced carbon emissions, shift to more sustainable containers and packaging, use of means of transportation with a smaller Co2 footprint, and an increasingly efficient supply chain procedure focused on reducing the company’s impact on the environment.

Internet of Things:

The term IoT refers to the grid system integrated by any physical device with the capability of receiving and transferring data through a series of wireless networks without human intervention. A traditional IoT system like a smart home works because of a series of processes where it permanently sends, receives, and analyzes data in a constant feedback loop. Beyond refrigerators, thermostats, and smart clocks, the IoT has had a big impact on the industry sector.

IoT solutions have allowed companies to improve their current systems, designing brand new points of connection for customers and partners. IoT started in the logistics sector by tagging shipment containers with radio frequency identification devices (RFID) allowing logistics companies to accurately track container movement and arrivals at certain checkpoints equipped with tag readers such as warehouses and cargo terminals.

Today, due to the IoT, every company implementing this kind of technology can improve its visibility on every step of the supply chain, and its efficiency on inventory management. There’s no better synonym for efficiency than being able to track down your items in real-time, and that’s why the IoT is a major trend in the logistics field, bringing transparency and upgrading processes that help us make the work far more simple and effective.

Last-mile delivery

Last-mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub to its final destination—which, usually, is a personal residence or retail store. This is the most critical step in the delivery process, and the one that businesses want to ensure is as quick and efficient as possible. This is to keep up with the continually increasing consumer demand for speedy shipping, especially in e-commerce, food, and retail industries. It also happens to be the most expensive leg of the journey that goods take to reach their ultimate destination.

Last-mile delivery has been a key factor for businesses across the globe where businesses have established a need for more effective delivery service. Consumers easily look for alternatives if their logistics partners come up short in providing top-notch supply chain services including last-mile delivery software.

Optimizing last-mile delivery can result in significant savings for e-commerce businesses and retailers, especially as the number of shipments across most industries continues to skyrocket. This is crucial in building brand loyalty that could help companies take a huge slice of the market share.

Warehouse Automation

Technology is making many warehouse processes more efficient by augmenting the work of humans or, in some cases, automating tedious, manual tasks, freeing up associates to focus on more complex tasks. Warehouse automation takes many forms, including machines and robots that aid workers with processes related to inventory from when it arrives at the warehouse until it leaves.

Applying warehouse automation solutions can help warehouses increase productivity and accuracy, reduce labor costs and improve safety. That doesn’t mean robots are taking over or stealing jobs from human workers. Rather, companies are taking advantage of the accuracy of machines, as well as their ability to work continuously for long hours without fatigue, to make warehouse tasks safer and more efficient.

There is no question that robotic warehouse systems help to increase human worker efficiency. Naturally, robotic warehouse systems are the ideal choice for taking care of non-value-added jobs, such as shifting goods around the warehouse from one point to another.

Cloud Computing

The term “ Cloud Computing” refers to shared software and/or information that users access via the web. Rather than storing information on their own physical servers or computer hard drives, users rely on servers that are maintained by the cloud computing software providers. From the user perspective, all information is stored and readily accessible online in a 24/7 format, and from various types of devices, such as desktops, laptops, tablets, and smartphones. That being said, instead of using their own physical servers or hard drives to store the software and information, more and more logistics professionals are subscribing to these software services that are housed and accessible online.

Why does the cloud seem like such an attractive option? For starters, it offers a high degree of flexibility and scalability. In contrast to on-premise storage and software hosting—which could require expensive IT projects to add more storage capacity or processing power—the cloud lets you pay as you go, using as much or as little capacity as you need at any given time. This can help you to achieve a modicum of budget certainty, yes, but it can also help you to navigate unexpected spikes in demand or other scenarios where you might need more computing power than usual. As you potentially beef up your IT infrastructure with new apps and devices, the cloud can make it easy to scale up your capacity while integrating a variety of different data sources (due to the cloud’s accessible, decentralized nature).

About Cobuild Lab
We partner with Industry Experts to solve Logistical and Productivity problems with Custom Software Solutions, Artificial Intelligence, and IoT. Everything from using email autoresponders to automated workflow can help you redefine your relationship with the customer and open up new revenue streams for you. It's time for you to use technology and automation to make your business more efficient. Since 2012 we've focused on developing and combining cutting-edge techniques, tools, and technologies to increase development speed to deliver faster results.

Does your company needs an agile software solution? Let’s build it! Check out our price calculator to have an estimate of the cost of your project or email us at 📩 contact@cobuildlab.com and get a FREE online consultation

Keep receiving our weekly news and content by subscribing to our newsletter. We promise to only send relevant information.