The logistics industry is growing at a steady rate of 7% since 2011. We have got ample time to come up with some innovative ideas to speed up the processes as well as process drivers owing to this stable growth. We are gearing up for the challenges of future which lie in an insufficient workforce, scattered manufacturing, unorganized last mile delivery and insufficient use of current resources. But that needs some strategic changes in the transportation management systems which are used by Logistics Services Providers (LSPs), 3PLs and shippers across the industry. We are looking up at some of these remarkable changes to adjust the future demands. But what are they?
We are trying everything from augmented reality to connected machines in logistics. Drones, Driverless carriers, smart glasses are not something out from the fiction books anymore (however, they are definitely producing similar effects). The transport industry is a perfect example now to see that if an industry is propelled with innovative ideas under the curious leadership, it can change itself within a decade with amazing solutions. Let’s check out the most promising ones.
Augmented Reality in transportation management systems
Augmented reality is set to cross $6 billion marks by 2017 and a majority of this growth will be concentrated on retail, e-commerce and product visualization. It is not a word from science fiction literature anymore. Augmented reality is taking the supply chain industry by storm. The most successful way in which logistics industry has been able to adapt augmented reality in their transportation management systems is Augmented Reality (AR) mobile applications and smart glass. Both of these solutions are becoming excessively popular among the LSPs and 3PLs. In the industry where driver shortage is something which everybody is struggling with, AR is able to save 60% of the driver’s time. The time spent by drivers in locating the right location of the freight they carry can be saved and utilized in actual driving tasks. This comes as a huge relief for drivers as well as the owners as the amount and ease of the work, both increases drastically after switching to augmented reality solutions. Augmented reality finds its utility picking processes, where it can be used to streamline the 55-65% of the warehouse operations.
When Amazon made the buzz with the announcement of its Prime Air service, many were not able to believe that future has arrived. Drone delivery is set to revolutionize the last mile delivery as soon as in 2017. E-commerce industry being at the forefront and main catalyzer of logistics boom are the biggest industry eyeing drone delivery concept for some time. It is not only going to make the smaller package delivery (less than 3 Kg) much cheaper, it is also going to make it exceptionally fast. Amazon is aiming to provide a 30 min delivery service with drones. The commercial global market of drones for the business services is valued at a whopping $127 billion in 2016. With shippers and 3PLs already struggling with competitive pricings and making the delivery process faster, it is only the matter of time to come up with an equally viable and efficient solution. For now, drone technology is ruling the space and transportation management systems can definitely reap the benefits out of it.
A survey conducted by EFT revealed that at least 40% of the manufacturers and retailers expect their LSPs to have some knowledge about 3D printing and its utility in the current market. Yes, it means they expect their LSPs to come up with the ideas or have decent knowledge about the ideas by which they can incur minimum expenses on logistics. Only 19.2% of the manufacturers are currently using 3D printing. But the inclination towards shifting to this pathbreaking technology is evident among them. 3D printing is pushing the production houses closer to the consumer markets and also making the personalization and customized requests feasible. If we believe the analysts, 3D printing is able to impact logistics in the same way as emails impacted letters. With this much capability, 3D printing is sure to impact the way transportation management systems work.
There is a huge demand from manufacturers to get solutions in driverless carriers segment. Around 42% of the manufacturers want their LSPs to have moderate expertise in driverless carrier technology. But there is a huge gap to compensate this demand as only 0.75% of the current logistics players can provide expertise and 1.5% can provide comprehensive services. With the decades-old impending crisis of drivers shortage, driverless carriers or autonomous vehicles are among some of the most awaited developments in the logistics industry. If we believe the German authorities the Truck transportation is going to increase by 39% by 2030 which needs to tackle the traffic congestion problem. Driverless carriers will be a viable solution as they are connected vehicles and can be planned in a much more efficient way. If these are not enough reasons, think about the cost cutting which driverless carriers are going to induce in transportation management systems. In fact, according to some LSPs, freight shipping cost can be reduced by as much as 40%.
IOT & It’s applications
Connected transportation or Machine-to-Machine (M2M) communication is one of the oldest concept technologists are pondering upon. According to the Research and Markets report the global market of IOT for transportation management systems software is set to grow at a record CAGR of 16.9% from 2016-20. It is transported industry where it can be used in its full strength to make a mark on a global level. RFID, OBD sensors, Monitoring systems and device security systems are already in place in carriers. The logistics industry is trying to equip itself with IOT solutions which can also increase its robustness in operating carriers. Safety and cargo security has been one of the most emphasized segments where IOT has proved crucial. DreamOrbit has observed that majority of the logistics and manufacturing companies are trying to embrace IOT solutions in order to achieve the objectives of creating autonomous business practices for seamless operations.
Uber trucking, predictive analysis and balancing cost and benefits with the right usage of business intelligence are few of the business practices which are emerging trends owing to the innovations mentioned above. We are still in the nascent phase for some of the above technologies where we are still adapting to them. But the optimism of the manufacturers across the industries is driving LSPs to develop expertise in these segments and come up with more comprehensive services.
To know more about the cutting edge services in transportation management systems (TMS) you can check out the services of DreamOrbit.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. With the support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more about DreamOrbit.