Surviving the last two years has been the most accomplished journey for every sector and the logistics industry is no different. With the ever-growing consumer demands, new start-ups cropping up due to the newly induced fuel by the lockdowns and the constant push to innovate and adapt new technologies has kept the sector on its toes more than ever. Despite the challenges, the pandemic has placed the sector on higher grounds and is expected to scale even further. The growth has been such that according to RedCore, a research arm by RedSeer, the road logistics market in India is expected to grow at a CAGR of 8 percent over the next five years.
With quick commerce and deliver-on-demand expected to be the game-changer in the logistics sector, experts believe that technology adoption will be far more crucial for companies to build capabilities that will help them sustain in the fast-pacing world of tomorrow. The top five tech trends that will transform the Indian logistics industry in 2022 have been listed below:
- Artificial Intelligence and Augmented Intelligence: Just like any other sector, the logistics industry will also witness the adoption of new-age technologies such as AI, ML, and predictive analytics. With AI in warehouse management already making planning much easier; accurate predictions, shorter delivery TATs, self-governing logistics processes, and a sustainable supply chain will further help the sector grow.
- Adoption of Cloud-Based Systems
After AI, the next logistical and natural adoption will be the use of cloud-based systems. With the help of this technology, companies would be able to invest less in hardware maintenance, but more in improving security through data encryption, hence increasing reliability, and reducing costs.
Cloud solutions will not only help mid-large enterprises but also smaller firms by allowing them to opt for pay-per-use options and reduce their expenses. They can further add more features or can use tools that can help them keep a track of progress and organise future projects.
- Data Analytics
The amount of data generated around the world is huge and studying this data to understand your customer is another way to deliver better services. Another trend that we expect to drive the logistics industry is to use data analytics and to learn about their customer buying habits and competitive strategies. A shift to data-driven reports will make fuel management, warehouse management, and other processes easier.
- Use of Autonomous Vehicles and drone delivery:
So far, we have only witnessed drones being used for surveillance, agriculture, and military purposes. However, the pandemic has expanded the horizon of drones and has introduced many innovative uses such as public surveillance during the lockdown. While India is all set to enter this rapidly expanding market, with the Ministry of Civil Aviation expressing its interest to make India the Drone Hub of the world, more research is needed to understand the challenges that one might face while using drones for delivering goods from one place to another
Further, to reduce the cost and increase efficiency, many of the growing logistics firms have started investing money in developing autonomous delivery vehicles. Though the use of autonomous delivery vehicles is still a distant dream, experts believe that once achieved, the innovation can help companies save up to 60 percent of their delivery costs.
- Last-Mile Delivery
Be it traveling or shopping, ‘last-mile’ is the buzzword for both the mobility industry as well the online shopping industry. With the change in the shopping behaviour of the customers and a growing interest in online shopping, companies are now focusing on smoothing the last leg of delivering goods. To provide customers with a more personalised experience and reduce costs, they are ensuring that the delivery of goods from the warehouse to the end customer is convenient and hassle-free.
While the industry is expected to grow faster than ever, the adoption of these technologies and adding more flexibility can help companies meet the changing requirements of the customers and further double fold the growth.
For those who believe that ‘with challenges comes an opportunity to innovate and think out of the box’, they should also believe in the fact that ‘the one who is future-ready can survive the unpredicted and extraordinary rugged road ahead’. And these technologies can make our journey towards success far more interesting and hassle-free.
Authored by: Sainadh Duvvuru, Co-founder and CBO, HappyLocate