Top 10 innovations and trends for logistics

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By ganerationlmn 7 Min Read
Top 10 innovations and trends for logistics

Knowing the size of the challenge, in this article we have listed some of the trends and innovations in logistics that you need to keep an eye on! Good reading!

See what will be covered:

10 logistics trends to keep an eye on

  1. Logistics 4.0
  2. Artificial Intelligence and the Internet of Things
  3. ESG in logistics
  4. Reverse Logistics and Green Logistics
  5. Early delivery and same-day delivery
  6. Dark Store
  7. Omnichannel logistics
  8. Autonomous transport
  9. Drone delivery
  10. Digitization and automation

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1. Logistics 4.0

The 4.0 concept is not exactly new, but the fact is that the main innovations for logistics are based precisely on the pillars of Industry 4.0, that is, on high technologies that promote process optimization and improved efficiency.

Logistics 4.0 is nothing more than the improvement of logistics processes through automation, digitalization, robotics, use of data, among other technological resources.

The effects of adopting 4.0 technologies in logistics are not restricted to operational processes but throughout the company. Cost reduction, leaner and faster processes, intelligence in the processing and use of data, and greater customer satisfaction are some of the countless benefits obtained from investment in cutting-edge technology.

2. Artificial Intelligence and the Internet of Things

Two essential technologies for the future of organizations, IoT and AI are perhaps the most remembered when we think about innovation and Logistics 4.0.

Artificial Intelligence (AI) is nothing more than the ability of machines and systems to simulate our human intelligence. Basically, AIs process data, through programs and algorithms, and learn from this information to solve problems and make decisions. All this autonomously!

Far from being the stuff of science fiction films, AIs (or AI, from English artificial intelligence ) and IoT ( internet of things ) are already widely used in different contexts, including in the optimization and automation of logistics processes, such as:

Real-time monitoring and tracking, using devices and sensors such as GPS and RFID;

Route optimization and transport planning based on traffic data, weather conditions, load capacity, and other variables;

Inventory management and demand forecasting by analyzing historical sales data, market information, seasonal trends, and other factors. to predict future demand for products;

3. ESG in logistics

Good ESG practices in companies have become a competitive factor in the market and the logistics sector is not left out. The integration of environmental, social, and governance criteria into operations is a strong trend for logistics and promises positive returns in several aspects, such as:

Reduction of negative environmental impacts, such as carbon emissions and excessive consumption of natural resources.

Improving the company’s reputation, and increasing the trust of customers, partners, and investors.

Reduction of operational costs through greater energy efficiency, resource use, and risk management.

Talent attraction and retention, as employees are increasingly interested in working in socially responsible companies.

Adapting to constantly evolving environmental regulations and societal expectations.

4. Reverse Logistics and Green Logistics

Two other trends that promote the socio-environmental responsibility of companies are reverse logistics and green logistics.

Unlike the traditional linear model, reverse logistics is a cycle that follows the entire useful life of products, returning the responsibility for correct disposal to the manufacturing company.

5. Early delivery and same-day delivery

The change in purchasing behavior driven by COVID-19 restrictions has put companies’ logistical efficiency to the test. With consumers even more adept at online shopping, delivery agility is now one of the decisive factors in completing a purchase and, therefore, tends to be one of the reasons for companies’ efforts to modernize their logistics processes.

The same-day delivery model, for example, focuses on the availability of the best-selling products at strategic points, such as dark stores, enabling greater agility in deliveries.

6. Dark Store

As mentioned earlier, the dark store concept is an alternative to further improve the e-commerce fast delivery system.

A dark store is a small warehouse that serves as a support for delivering products from online stores. The main advantage of the dark store is its location in urban areas, unlike distribution centers which, for the most part, are further away.

With this, the company is able to offer its customers fast delivery, cheaper or free shipping, and, consequently, a good shopping experience.

7. Omnichannel logistics

Speaking of the shopping experience, omnichannel logistics has proven to be a very efficient strategy for overcoming one of the biggest challenges in logistics: sharing information between different sales channels.

In other words, omnichannel logistics integrates information from physical stores and virtual stores, which enables inventory management, delivery, and return of products in a harmonized way.

8. Autonomous transport

Driverless vehicles? That’s right! The trend towards autonomous transport for logistics is real and represents great benefits for the sector.

Autonomous transport can move without the need for a human driver. These vehicles are equipped with advanced technologies such as IoT sensors, cameras, and artificial intelligence systems, which allow them to navigate traffic, make decisions, and perform maneuvers autonomously.

9. Drone delivery

Another technological solution for logistics is drone delivery. At the end of 2022, Amazon began operating Amazon Prime Air, its drone delivery service. Operating in a very restricted region — the launch took place in just two cities in the USA, in California and Texas — the service is considered an alternative to speed up and lower transportation costs.

For now, drone delivery is limited to light products and short distances, in addition to encountering some barriers in legislation for it to expand to other companies. However, we cannot deny the range of possibilities that this type of innovation offers to the logistics sector.

10. Digitization and automation

Finally, we could not leave out the digitalization and automation of logistics and the entire supply chain. Perhaps this is the most consolidated trend nowadays, such is the need and urgency to increase the efficiency of operations.

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