Supply chain technology can have vast applications in logistics and it is often said that drastic technological advancements and innovations will be a huge part of the third party logistics industry. Since logistics doesn’t only about taking care of the physical transportation of goods from one place to another but also about managing the relationship between the customers and suppliers.
Supply chain technologies which can affect logistics:
> Internet of Things
New supply chain technology like the Internet of Things (IoT) has received a lot of attention, not just from the technological sphere but also from other industries. This is because once it is implemented in entirety in the supply chain, IoT will dictate a number of changes in the global market. The world of logistics too will be affected by IoT in association with current supply chain technology. IoT in the supply chain will open several new doors of possibilities for logistics of cargo delivery.
> Self-Driven Vehicles
A fleet of vehicles that can drive themselves is the future of the logistics. Soon, the truck driver will be replaced by machines that will not only drive the goods between locations but also do this in a safe and speedy manner. They will be equipped with GPS, Wi-Fi, and sensors that allow clear passage of information like speed, location, exact estimated time, etc. Vehicles having such supply chain technology will not only be limited to the roads but will also revolutionize warehousing and distribution.
> Data Analytics
Big Data will play an extremely important role in several global industries and logistics is one of them. IoT and other methods of digitalization of the supply chain will allow the companies to get more information about their shipment and even monitor the conditions to make sure that out of stock situations are significantly reduced. Due to such supply chain technology, the analytics will be able to accurately predict shopping patterns which in turn will help logistics make necessary decisions.
> Smart Commerce
When it comes to smart commerce, IoT is one of the first things that come to mind. However, there are other trends such as the peer to peer block-chain model which has brought about new innovations in logistics. It combines software apps with B2B connectivity and opens a passage of communication between the two parties. With such supply chain technology, buyers can be in contact with suppliers and discuss business deals more clearly.
With the advancement of supply chain technology in the logistics world, the supply chain is becoming less asset-centered. Generally, logistics service providers do not own most of the warehouses, vehicles, ships or airplanes, etc. They sign contracts with separate service providers and offer a comprehensive logistics solution to the customer. 20Cube Logistics is a 3PL provider which can be an appropriate example of modern, non-assets based global service.
There are some logistics companies that have already started investing in some of the new supply chain technologies mentioned above. Some have even started trials with such technologies with highly encouraging results. The bottom line is that with the fast-changing market trends, the best thing that a logistics business can do is to embrace the new supply chain technologies that are soon to be introduced. This is how the market requirements will be fulfilled and the supply chain will be revolutionized.