14 Emerging Technology Trends in the Logistics Industry

14 Emerging Technology Trends in the Logistics Industry

In recent years, the logistics industry has been experiencing numerous changes due to the rise and popularity of e-commerce and digital literacy among many customers. Other factors including the rise of dual-income households, rising incomes, and constant urbanization, have also resulted in the rapid development to acquire efficient warehousing solutions and inventory management for customers.

However, the logistics industry is a highly competitive and challenging business environment. It requires extreme precision and the right timing when making important decisions to ensure efficiency in your workflow. 

That’s why as a business owner, it’s important to know the trends that the logistics industry is experiencing. To guide you, here are the 14 emerging technology trends you should incorporate into your workflow process to ensure your success in the logistics industry.


Top 14 Logistic Trends in the Industry that Companies Should Know


Over the past few years, various trends have been taking place in the logistics industry. Here are the top 14 logistic trends that businesses should implement to improve efficiency in their workflow processes and ultimately lead their business to success.


1. Digitalization

Modern technology has been shaping most of the industries around the world, including the logistics industry. This is due to the rise of digital literacy in consumers and their need to make customized purchase decisions.

This digitization can help you develop efficient business solutions and provide transparency to your customers.

Furthermore, it can minimize considerable procurement and supply chain costs which ultimately gives your business higher revenues.

Did You Know? There will be an estimated 2.14 billion global digital buyers in 2021.

2. 3PL, 4PL and 5PL

Third-party logistics offers end-to-end transport and logistic needs to consumers. This includes the maintenance of inventory logs, transportation of packages and goods, and insurance against property loss.

Did You Know? In 2017, 3PL was the highest contributor in the global logistics market share.

On the other hand, fourth-party logistics acts as the primary contact to assemble resources and technology for the successful coordination of the client’s supply chain. Often times, large 3PLs become 4PL providers as well.

Last but not the least, fifth-party logistics providers are often hired to develop and implement the best possible supply chain for multiple consumers. This is why it’s often used to link E-businesses to ensure cheaper costs of bulk packages.

3. Last Mile Deliveries

Today, most customers want their packages to be delivered on the same day. In fact, 49% of shoppers have stated that same-day delivery makes them more likely to shop online.

For them, the need to get the orders right is not enough, they expect their packages to arrive perfectly and on time.

With this increase conversion to e-commerce, more and more logistics companies now provide efficient last mile delivery services to offer ultimate customer satisfaction and ensure their success among other competitors.

4. Blockchain Technology

Blockchain technology allows the logistics industry to create a transparent and efficient system for the following purposes:

  • Track important assets
  • Record transactions
  • Manage all documents involved in the logistics process

Overall, it can improve workflow efficiency and has a positive impact on warehousing and delivery payments.

5. Risk Management

Logistic companies have been facing numerous problems with cybersecurity and safety due to the rise of internet connectivity.

As a result, there has been a large number of logistics providers who want to focus on managing these risks by providing secure logistics solutions.

Autonomic identification and data capture (AIDC) is just one of the most common solutions and it keeps track of the shipments in real-time.

6. Big Data Logistics

Big Data Analytics helps logistics companies to make informed decisions regarding their businesses as it provides the following important information:

  • Peak and busy periods
  • Potential supply shortage
  • Route optimization
  • Labor management

Furthermore, the use of Big Data Analytics in the logistics industry is crucial to supply chain activities and allows the growth of the third-party logistics market.

7. Collaboration with Supplier

It’s a must to collaborate with the supplier in order to streamline internal processes and minimize the resources used on administrative tasks.

Furthermore, a close working relationship with the supplier can generate income for your logistics company as they are more likely to refer you to their other business partners and customers.

8. Drones and Smart Glasses

Autonomous and self-driving vehicles allow you to provide same-day delivery for your consumers without compromising quality and reliability.

When used by your employees, AI-integrated smart glasses can also make transportation of goods easier by enabling hands-free route searches and face recognition to ensure error-free deliveries. But aside from giving essential visual cues, smart glasses can also leverage the voice or bar code capabilities already found on your tech equipment.

Overall, your freight forwarding company can experience faster delivery and improved flexibility if you incorporate drones and smart glasses in your workflow process.

9. Chatbots

Voice-controlled chatbots can interact with your consumers and provide them with reliable information about your service without the need for an actual human operator or customer service representative. They can help you with operations such as delivery booking, shipment tracking, and delivery-related inquiries. 

Ultimately, integrating chatbots in your logistics company can help you save money and boost efficiency in your current workflow process..

Did You Know? About 67% of consumers worldwide have used a chatbot to aid them in their concern.

10. Logistics Automation

Automating your logistic process through the adaptation of Internet of Things (IoT) can present many different benefits for your business. IoT simply means enabling physical objects to be associated with Internet-empowered devices. 

Through this connection, it helps you reduce operator errors, minimize transportation delays, improve the monitoring of cargo, and solve outdated IT failures.

Furthermore, it can give you real-time automated data and insights that are crucial for the success of your logistics company.

11. Supply Chain Visibility

Improved supply chain visibility can take your logistics business’ inventory management to a whole new level.

It tracks the entire supply chain process: procurement, manufacturing, transport, delivery in real-time. It also allows your goods to be replaced quickly as soon as they are purchased by the consumers.

12. Wearable Devices

Wearable devices give your employees instant access to input important data information straightaway which allows your logistics company to oversee your daily inventories in real-time. It also helps them find exactly where a certain product is located in the warehouse. This ultimately saves your company time, allowing you to assign them to do more complex and delicate tasks.

Furthermore, wearable technology can monitor the vital signs of your workers which is extremely helpful to prevent health problems such as cardiac arrest, high blood pressure, and heat exhaustion among others.

13. Elastic Logistics

Elastic logistics refers to a company’s ability to adapt to the demands of the supply chain during a certain timeframe or season.

It’s a must to implement this trend in your logistics company to maintain the work flow process at optimum level during peak season. It also helps you provide reliable customer support and enhances their experience through scalability, visibility, and connection to all of the company’s logistics processes.

14. Customer Segmentation

Logistics companies should divide their customers into groups to address their needs and concerns in the best way possible. 

For instance, if you cater to international customers, you need to consider each of their cultural norms and preferences. You also need to consider the market in relation to your business strategy. Sometimes it’s perfectly acceptable to put a lower price tag or a special bundled price on your products if you also want to cater to people who want to cut costs and save money.

Ultimately, by adopting a strategy targeted to each customer and product, logistics companies can enjoy an increase their profits.

Tip: Ideally, these groups should be separated based on the consumer’s purchasing decisions.


Key Benefits of a Digital Supply Chain in the Logistics Industry

The digitalization of the supply chain process is one of the fastest-growing trends seen by the logistics industry due to the customer’s demand for speed, mobility, and accuracy in their shipments.

However, it also comes with other key advantages. Here are the 4 benefits of a digital supply chain in the logistics industry.


1. Provide Transparency

With the rise of digital platforms, your company can connect to your consumers and provide transparency in real-time through tracking websites and chatbots. This can ultimately lead to a satisfactory experience for them.

2. Minimize Expenses and Operating Costs

You can cut down on manpower resources and other unnecessary operating costs by digitizing your workflow processes.

3. Increase Efficiency and Improve Collaboration

A digital software gives your company instant access to reliable and accurate data and offers better mobility in your management processes which can ultimately increase efficiency and improve collaboration with your clients.

4. Stay Relevant

Logistics companies have a tendency to solve their problems in a backward-looking approach. 

But with the use of a digital network, you can stay relevant to your consumers as it gives you an insight into current trends and supply and demand status.

ALSO READ: 7 Reasons to Use a Warehouse Management System

By incorporating these emerging logistics trends in your business, you can expect an increase in your revenue and substantial company growth.

Looking for a logistics company that is up-to-date with the latest trends? Check out Worklink Services Inc., a reliable freight forwarder and logistics company in the Philippines. We have been providing effective courier services and logistics solutions to our loyal customers since 1999. Contact us today to learn more!

Found this blog post helpful? Check our blog for more information about the logistics industry in the Philippines.