The logistics industry is going through an unprecedented and rapid transformation. It is paving the way for innovation and upheaval in the sector. The pandemic has been very challenging for the logistics sector. But we have managed to grow extremely well in this unprecedented situation. There is a myriad of emerging technologies that are shaping the future of logistics. These technologies will shape the future of the global economy and will have a huge impact in the coming times.
Logistics-tech solution providers today are adopting futuristic trends and technologies. Making products to empower truckers, introducing tech and financially aiding these drivers is so difficult in such an unorganized sector. Yet the sector as a whole has been taking up these challenges and showing excellent results. The sector was the first to hop onto the EV trend and work on bringing a big change in India.
With everything going on, some unimaginable technologies are all set to make their way in the logistics sector in the coming few years. A few of them are:
Large scale EV adoption
EV revolution seemed far-fetched for India until a few years back, but the logistics sector has been able to champion this change in the country. In a few years, most trucks being operated would be EVs equipped with advanced telematics technology providing real-time inputs. The industry will shift to EVs for better supply chain planning, improving utilization and making businesses more cost-efficient.
Drones for Last Mile deliveries
Not in action yet but this is something that we can expect very soon. The sector has been advancing at a lightning speed and drone deliveries have already started in a few corners of the world. Drones are now being used in almost every sector and the logistics sector has never been behind in adapting to any trend. Having drones for last-mile deliveries will make things very smooth and quick. It will definitely require a little manual intervention but will be better than the traditional approach.
Introduction of something similar to ‘FasTag’ for logistics
‘Smart Tag’ is a great initiative by the government and has made crossing states very easy. Having something similar for the logistics sector is what we can expect soon. Expanding the use of FasTags or similar technology to go beyond toll booth payments to fuel payments at petrol pumps, payments at RTOs, etc. will help make the whole process quicker.
AI and Big Data Change
AI and Big Data will take huge leaps in terms of supply chain planning. There will be a big change in the entire sector with the introduction of new AI, which will help make a more sustainable model for the industry as a whole. The supply chain will be much faster and approachable with this alteration.
This is a little far-fetched idea, but something that we can expect 8-10 years down the line. This introduction will be a major leap for the sector and will bring a big difference in the whole functionality of how logistics has been operating. This definitely requires a lot of technology and infrastructure building, but once achieved, it will greatly boost the sector.
The logistics market in India is forecasted to grow at a CAGR of 10.5% between 2019 and 2025. Increasing investments and trade points toward a healthy outlook for the Indian freight sector. The sector has a great scope in the new future and these technologies once shaped will act as a great push. They are more stable in their approach and will bring a balance in the working of the sector. They definitely seem a little far-fetched but even the EV revolution stood at the same position some time back for India and now we have already made big progress in that direction.
Note: The author of the article is Pushkar Singh, CEO and Co-Founder, LetsTransport