4 innovative trends shaping global logistics you should know about

Maximizing your logistics operations means keeping up with industry developments. From consumer preferences to technological updates to market-shifting global events, logistics is a field constantly undergoing change. 

As your business progresses, its supply chain operations should too. Here are four trends you need to keep an eye on today.

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SMART WAREHOUSES

The growth of ecommerce means companies need to reduce time and error with storage and warehousing. To optimize their warehouses, companies are beginning to use robots, automation, and AI — all of which contribute to the growth of the ‘smart warehouse.’

The trend of smart warehouses works to reduce problems in human error and maximize the use of space. Some have even begun to rely mostly on robots for routine activities like scanning and picking. Smart warehouses can also cushion the blow during peak seasons and holidays when labor capability runs short. 

AIR FREIGHT AND DRONES

The future is now, and it’s in the sky. Drones, or unmanned aerial vehicles, are replacing traditional transportation of goods within warehouses and in the last mile. 

And it’s not just major companies like Amazon and Google’s Alphabet getting in on the action. The market for drone delivery in logistics is predicted to reach $US10 billion by 2025, seeing growth of roughly 11% per year.

In last-mile fulfillment, air delivery is especially useful in securing delivery for hard-to-reach destinations as well as overcoming traffic congestion.

While regulations and permits often stood in the way in the past, air delivery is slowly but surely seeing a more widespread uptake. US-based startup Elroy Air, for example, has begun producing cargo drones that can deliver hundreds of kgs of supplies in a radius spanning hundreds of miles.

SAME-DAY DELIVERY

According to a survey from Invesp, 61% of consumers are willing to pay more for same-day delivery. They also found that ‘fast delivery’ meant ‘same-day delivery’ for 96% of surveyed shoppers.

Same-day delivery was devised as a way to bring together the best of e-commerce’s convenience with the speed of traditional shopping. These days, it’s become an expected option for a great many online shoppers and a key distinction to drive business growth and customer retention.

Though same-day delivery isn’t possible for every class of goods, it’s key that your business is able to offer it when possible and prioritize speed.

RELATED: How Technology is Transforming Logistics, Part 1

CONTACTLESS DELIVERY

Among the countless impacts the COVID-19 pandemic has had on industries around the world, logistics saw profound shifts. Measures like social distancing drastically altered how previously-routine deliveries could be carried out. One such change came through the uptake of contactless delivery, a process in which customers receive goods without meeting couriers. 

In order to set up contactless delivery, vendors need to be sure they have secure, digital payment systems set up as well as precise order tracking. One added feature in the past year also includes health declarations and verifications of delivery personnel.

It’s a trend that’s likely here to stay. According to research from McKinsey, 60% of US consumers said they’d continue to use contactless delivery options even after the COVID pandemic.

CBIP’S FOCUS ON THE FUTURE

At CBIP Logistics, we’re a forward-thinking company with our eyes on the future. From sustainability to taking on the latest industry-transforming technologies, we keep on the pulse of changes in logistics so your company can see the benefits.

We’re constantly working to bring cutting-edge technologies to customers while cultivating relationships with partner providers who set the tone for innovation within the logistics industry. With proprietary order tracking software and warehouse management systems, we bring the future directly into your supply chain.

Ready to team up with a logistics team who can keep pushing your business forward? Get a free assessment from one of our experts and we’ll forge a path that meets your unique needs.