Role of Technology in Supply Chain: How Technology is Revolutionizing the Logistics Industry

The role of technology in supply chain and logistics operations has become pivotal, with studies showing that companies implementing advanced technologies can reduce logistics costs by up to 15%. (Source – Mckinsey)

Artificial intelligence, automation, AR/VR, Internet of Things (IoT), etc have become essential for logistics businesses to transform traditional supply chain practices and gain competitive advantage in the industry.

Several companies use advanced technologies to predict demand and manage inventory to ensure that they are ready to tackle future challenges. Additionally, technology establishes better collaboration between suppliers and partners which creates a reliable supply chain ecosystem.

In this blog, we’ll understand the role of technology in supply chain and logistics operations, highlighting solutions that are reshaping the industry.

But before knowing their importance let’s explore;

Key Technologies in Supply Chain and Logistics that are Reshaping the Industry

Technology and logistics are connected now because technologies are revolutionizing the industry. Here are some key technologies in logistics and supply chain;

1. Automation and Robotics

Automation and robotics are one of the popular trends in logistics. They are the leading innovations with the potential to disrupt the industry or provide a competitive advantage with the power of process automation. Nearly more than half of logistics and supply chain businesses plan to invest in integrating intelligent automation and robotics technologies.

Automation and robotics enable automated picking and sorting systems and autonomous guided vehicles streamline warehousing operations. These technologies reduce human errors and enable employees to focus on strategic efforts.

2. Blockchain Technology

Blockchain is also a very popular technology in logistics. This technology’s disseminated and immovable nature will grant access to single and required portions. It provides a unique digital identity with an origin, manufacturing details, certifications, and ownership. Blockchain allows for transparency and visibility into the movement of goods from the point of beginning to the final destination.

The security measures of Blockchain will protect the app and company from frauds like counterfeit goods, theft, hacking, etc. Therefore, Blockchain will digitize and automate documentation and mitigate risks related to financial and other privacy concerns. Maersk is a company that partnered with IBM to build the blockchain platform TradeLens for better visibility and reduced use of paper.

3. Internet of Things (IoT)

With the use of logistics industry trends in supply chain management, the company effectively handles transportation, minimizes waste, and reduces the number of lost items. Businesses take advantage of IoT in Logistics and Supply Chain properly. Integrated IoT sensors attached to vehicles and shipments provide real-time tracking.

Companies can monitor locations, and analyze temperature, goods condition, fuel consumption, driving behavior, etc. IoT helps identify potential issues, coordinate supply chain processes, and optimize inventory levels. Schneider Electric uses IoT sensors to improve fleet operations.

4. Artificial Intelligence

Artificial Intelligence is currently considered the most influential and popular creation. It indicates the readiness of AI to bring substantial and transformative changes. It has a significant use in logistics and supply chains. These algorithms can analyze real-time big data, identify patterns, and trends and generate predictions through chatbots. AI chatbots are shaping the future of businesses because they help improve efficiency with intelligent decisions.

It can identify issues earlier so you can avoid the breakdowns. It helps the logistics company reduce downtime, maintenance costs, and disruptions. AI-powered tools ensure improvement and seamless management. Top logistics companies in USA use AI to provide high-class logistics app development services.

5. AR/VR Technologies

AR/VR is a popular innovation in supply chain management. They create a secure and controlled environment for training. They allow employees to gain hands-on experience without the risks associated with real-world operations. AR/VR technologies lead to cost savings by eliminating travel expenses and boosting productivity.

AR displays real-time information with the use of smart glasses and assists the team in various tasks such as order picking, inventory management, etc.

On the other hand, VR contributes to enhancing training experiences for new employees. It helps them learn safety protocols, operation management, and other on-site tasks. VR enables managers to assist virtually, identifying potential issues.

6. Autonomous Vehicles and Drones

In the future, the amount of autonomous trucks driving on the road without a driver will be increased. They facilitate faster deliveries. These trucks will be equipped with advanced sensors, predictive algorithms, and AI systems to prevent accidents caused by human errors.

It reduces fuel consumption by adjusting speed, route, and other factors. These trucks operate without time limits to help companies eliminate driver and workforce shortages.

Apart from trucks, drones can deliver small packages quickly in urban areas, remote locations, and hard-to-access places. The use of drones cuts off last-mile delivery costs and helps avoid traffic and vehicle requirements as well. Businesses use this technology in supply chain and logistics to reach new areas.

7. Cloud Computing

Cloud computing has created a digital world that has huge potential for logistics. The future lies in remote-hosted data and processes. According to a study by Logistik Heute, more than 70% of companies are planning to use cloud computing shortly. Cloud services enable the scaling of highly responsive on-demand and pay-per-use business models that are becoming normal in logistics.

It offers flexibility and real-time access to critical intelligence. However, data migration and security may take your time but it is a cost-saving technology that is an increasingly attractive proposition. It will also establish real-time collaboration between supply chain partners. Cloud computing helps in adapting changes in business according to market demand, fluctuations, growth parameters, and risk factors.

8. Big Data

Big Data empowers the logistics industry to process and analyze large amounts of data for faster and more intelligent decision-making. It transfers the logistics ecosystem with data-driven solutions and provides insights into customer behavior, resource allocation, and demand patterns. Big Data has the ability to predict the issues at an early stage. This helps the organization find impactful solutions to tackle them. Businesses are making use of this technology in supply chain and logistics to achieve the best results.

These technologies are revolutionizing the industry and staying ahead of these technologies is crucial for businesses to maintain the competitive edge. The industry can drive future growth, and enhance customer satisfaction by embracing these innovations. An experienced logistics app development company can help logistics businesses take full advantage of these technologies and grow in the market.

The Role of Technology in Supply Chain and Logistics

Technology plays a huge role in shaping the future of logistics and supply chain companies and helps organizations manage and optimize difficult and manual operations. However, this is only the beginning of a remarkable input. Technology transformed the logistics business. Let’s explore the role of technology in logistics;

Optimized Data Flow

The use of technology in supply chain and logistics has eased the incorporation of intelligent logistics software systems for multiple tasks. This invention allows seamless data exchange and lowers the need for manual data entry.

The data collection tools collect and process huge volumes of data from multiple sources and identify trends, patterns, consumer preferences, and industry insights. This approach supports companies in predicting demand, optimizing routes, and fulfilling orders on time.

Streamline Your Warehouse Operations

Warehouse management system software controls and manages different operations, including inventory tracking, order processing, etc. This software streamlines the use of resources and gives insights into real-time data to make informed decisions. Automated systems streamline warehousing operations.

Automated Guided Vehicles and Autonomous Mobile Robots improve order picking, sorting, and packing processes. They reduce human errors and increase speed. The logistics app development guide also highlights the efficient use of technology to streamline warehouse operations.

Protect Your Data with High Security

Advanced logistics technology has ensured high security with effective safety measures against theft, fraud, cyberattacks, and unauthorized access. You can leverage technologies like RFID cards, biometric authentication, and keypad entry to limit access to authorized personnel only. Additionally, cyber security parameters protect digital information and data from security breaches, hacking, etc.

Manage Orders and Shipments

Logistics and technology are connected with each other. The use of technology in supply chain and logistics has automated manual and repetitive tasks like data entry, inventory management, order processing, etc. The technologies have led to better operational efficiency, fewer errors, and faster processing time. It allows logistics companies to manage large numbers of orders and shipments.

Connect with More People

Technical advancements in supply chain management and logistics have enabled smooth communication, data transfer and exchange, team collaboration, and networking. This advancement allows professionals to access necessary information, share and transfer data privately, track shipments, and manage operations. Now, communication is not limited to calls and messages only because connectivity has increased.

Handle Your Documents Digitally

Paperless document handling has become successful with the use of technology in the supply chain industry. Electronic Data Interchange, Document Management Systems, Digital Signatures, Electronic Bill of Lading, Electronic Invoicing, and OCR have optimized the documentation process. These technologies have terminated the need to maintain records on paper and transferred the work to technology. This ensures paperless document handling and record keeping, increased efficiency, and reduced errors.

Provide Unmatched Customer Experience

Logistics businesses can have a report-sending feature in their software to allow customers to track their shipments in real time. It also provides them access to delivery updates and communication with service providers. This feature improves customer satisfaction and provides full control over the delivery process.

Furthermore, AI-powered chatbots provide 24/7 customer support, answer queries, and handle essential tasks. It improves customer service and working efficiency. AI-powered chatbots are shaping the future of businesses because they provide enhanced customer experience.

Deliver Products at High Speed

Technologies like drone delivery, autonomous delivery vehicles, and advanced logistics platforms fulfill the increasing demand for fast and impactful delivery. These innovations help satisfy customer demands. Logistics software solutions can be furnished with machine learning to predict demand trends and optimize pricing strategies. It allows businesses to manage inventory and get ready for market fluctuations.

Total Convenience

Due to its advancements, the technology ensures easy access for logistics companies and their consumers. It offers ultimate convenience for both companies and consumers. This streamlines operations and increases customer satisfaction. Technologies such as cloud-based solutions, remote monitoring systems, mobile apps, data analytics dashboards, etc. make it convenient for employees to get updated with the latest on goings.

Advanced Transportation

The transportation & logistics industry plays a crucial role in ensuring efficient delivery. Logistics and supply chain softwares include data analytics and predictive algorithms to optimize route planning. This reduces fuel consumption and improves delivery time. Companies make informed decisions by analyzing old data and real-time traffic.

The integration of GPS and telematics is like the cheese on the cake. This integration allows fleet performance monitoring including vehicle location, fuel usage, and driver behavior. It reduces maintenance costs and enhances safety.

Examples of Businesses Using Technology in Logistics

Several companies understood the need for using technology in supply chain and logistics. These companies maximized their growth and revenue after investing in technology. Check out the companies;

DHL

DHL uses augmented reality (AR) in logistics through its Vision Picking pilot project. This integrates AR smart glasses into warehouse operations. It provides employees with digital picking lists and optimized routes to lower travel times. The smart glasses guide employees to the correct locations and items through barcode scanning.

Amazon

Amazon is popularly known for using advanced technology in supply chain and logistics. They use automation, robotics, and AI in their warehouses. Amazon also leverages drones and autonomous delivery vehicles for faster shipping and real-time tracking of customer orders. They deliver products on time and win the loyalty of customers.

UPS

UPS collaborated with TuSimple and Waymo to deploy self-driving autonomous trucks to transport packages on certain routes. It helped them save on costs and time. These vehicles use cameras and radar systems to navigate the route and deliver with minimal human intervention.

Maersk

Maersk is a global shipping company and it has used advanced technology in supply chain and logistics operations. This integration helped them improve transparency, efficiency, and customer experience. They use blockchain technology to create a secure and transparent platform. It helps them track shipments and manage documentation which reduces paperwork. Along with this, Maersk employs IoT devices to monitor containers in real-time.

Final Words

In the end, investing in logistics app development is a strategic step for you because it will enhance the operational efficiency of your logistics business. This investment will help you gain a competitive edge in the market. If you partner with a skilled logistics app development company, then you can leverage technology, optimize processes, drive growth, and adapt to market fluctuations.

RipenApps is a reliable partner for you to achieve your goals. Being one of the top logistics app development companies in USA, and India, we have all the experience, expertise, and resources needed to build an app with the latest technologies. We understand the changing demands of the industry and tailor your app according to them.