Innovations a Markets & Trends in Conveyor Systems for Logistics Industry

Digital logistics refers to the automation and digitization of processes related to the movement of goods. Digital logistics help enterprises to conduct logistical and supply chain planning and execution more ease to keep up with the evolving consumer behavior and demand and also to automate the recurring task to that logistic think tanks can thrive in critical activities. Digital logistics are packed with technologies including machine learning, AI, IoT, cloud computing, and blockchain to harness the full potential of digital logistics for supply chain management.

Consequently, industries with close links to logistics, such as retail, are revolutionized by digital technology. Digital platforms allow small companies to have a global reach and compete with the sector’s established giants. According to Accenture’s analysis, digitalization in logistics could unlock USD 1.5 trillion value for logistics players and a further USD 2.4 trillion worth of societal benefits by 2025. By helping smaller firms raise utilization levels, they will make the industry more competitive and bring societal benefits.

Abundantly, there are found more than 50 technologies that could further automate logistics, according to McKinsey’s research. However, the question that confronts logistics companies is simple enough: Which ones will take off to yield the greatest return on investment? No one wants to buy technology that becomes obsolete shortly after acquisition. Not only would that leave a company less efficient than competitors that made better choices, but it would also leave it worse off than those competitors that did not invest. The cost of removing and replacing equipment, much of it not fully depreciated, would put unlucky investors in a deep hole.

Brick-and-mortar retailers are reacting to the e-commerce onslaught in part by evolving their distribution networks into omnichannel systems in which consumers can purchase and receive items through any channel. They might purchase online and take deliveries at home, the classic e-commerce model. Or, they might purchase in-store and receive shipments at home, an option that menswear company Bonobos and other companies offer. Also, they can still go to the store and walk out with their purchases. On top of that, consumers demand ever faster delivery, which requires more local storage capacity, further driving complexity. Building a supply chain to support an omnichannel system is highly complex.

The increasing demand for real-time tracking and monitoring systems in logistics, as well as data management systems, are some of the factors driving the growth of the global digital logistics market. Furthermore, the rise of the e-commerce industry and its logistics market for consumers is expected to drive growth in the digital logistics market. The need for high capital for start-ups, a lack of technological infrastructure, and data security are expected to slow down the market growth. However, the use of blockchain and IoT technology in logistics operation, as well as increased investment in logistics startups, creates opportunities for the digital logistics market, according to Acumen Research and Consulting’s analysis.

Digitalization will only evolve and raise consumer expectations: real-time visibility of order fulfillment, inventory status, and shipping updates. The massive explosion of data sources and micro-insights born from extreme digitalization makes it possible to solve complex problems across the end-to-end supply chain with data feeding the AI that fuels intelligence and automated workflows. Companies should improve their collection of data from all along their value chain and ensure they can analyze data streams to derive insights that improve operational efficiency and enable the launch of new services. However, please be reminded that the value of the data depends on the transparency, trust, and security of its sources, too.

Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D. & MEGA Tech