Logistics Technology: Key Developments Shaping the Industry
In the logistics industry, one application of blockchain is a smart contract. Distribution companies may use smart contracts to cut red tape, automate the entire procurement process, and eliminate human errors.
FREMONT, CA: As the COVID-19 pandemic caused governments around the world to impose lockdowns or shelter-in-place orders, digital technology adoption skyrocketed in 2020. According to one survey, the COVID-19 response accelerated the adoption of digital technologies for customer and supply-chain interaction and internal operations by three to four years. Many of these changes are long-term in nature. Almost everyone who responded to the study claimed that their companies had devised short-term solutions to satisfy new needs.
The logistics business was not exempt from needing to adjust to the new normal swiftly. B2Bs, B2Cs, carriers, shippers, and other businesses find that digitization and software are effective tools. The logistics technology developments that will shape the industry in 2021 and the years ahead are listed below.
Many people identify blockchain with cryptocurrencies, although the technology's applications are much broader. Consumers will benefit from blockchain's decentralized digital ledger since it will allow them to trace their orders throughout their trip. It also increases security by disclosing attempted frauds, making audits more transparent.
Companies save money and time by eliminating manual paperwork with a blockchain-based solution. This makes document coordination much easier.
Transportation Management Systems (TMS)
TMS systems are becoming increasingly popular, particularly among logistics companies. And properly so, given that various technology tools necessitate proper organization and management in a single location. TMS is used to keep track of carriers and improve route automation. It may be used to track delivery drivers in real-time, reduce freight costs, improve transparency, and boost overall customer happiness.
Internet of Things
The Internet of Things (IoT) is altering every area of people's lives. It provides more data that can be used to manage assets remotely, predicts risk, ensures correct cargo handling, and forecast traffic congestion—expanding IoT in logistics results in more connectivity between items, packaging, transportation hubs, and vehicles. When IoT is paired with blockchain technology, end-to-end visibility of packages may be possible.