Optimizing your supply chain can give your company a competitive advantage. If you don’t start looking at the future from now, it’s easy for your company to get left behind. Check out these three areas of innovation for the logistics industry!
1. Local Supply Chains Will Only Continue To Grow
As the number of home deliveries continues to skyrocket, establishing local supply chains will only continue to become more valuable. The future is poised to cater to high-end boutiques and extremely local, high convince retailers. Those in the middle will get left behind.
“Last mile delivery” is a term used to describe deliveries from a central hub to the final destination, which is usually in a residential area. The last mile is the most expensive part of the logistics process, and it’s also the area with the most opportunity for improvement. Technologies such as driverless vehicles and drone deliveries can help cut costs and innovate how the last mile is currently handled.
Another trend that’s developing in the local supply chain is the desire from customers to by local goods. There’s a growing number of people who want to know where their products are coming from and who are willing to go out of their way to support local businesses. Getting local products to customers will be an essential area for improvement in 2018 and beyond.
2. The Need To Innovate Will Become A Necessity
There’s a silent race going on to see which logistics company can make the best use out of all the emerging technology. With so many changes in the delivery and shopping process, there’s tremendous opportunity to innovate how the industry approaches distribution.
One area of innovation might be the Internet of Things. The Internet of Things (IoT) can be described as machines that we use on a daily basis, equipped with a computer that allows the machine to communicate with other systems in your company. Having parts of your supply chain in constant contact with each other can help you find ways to better deal with the demands of your clients and customers.
3. Technology Will Become More Integrated Into The Supply Chain
Companies with traditionally designed supply chains are finding out it’s impossible to keep up with the logistics of our now global society. When you have orders coming in from all over the world, you need a supply chain solution that relieves the burden of organization on your staff.
Cloud computing is becoming increasingly affordable and more integrated into the day-to-day processes of logistics companies. Cloud technology makes it easy for you to streamline your systems and find areas to cut costs. Cloud systems for logistics can facilitate real-time communications between the different levels of your supply chain. Real-time updates make it easier for your team to work together and it eliminates the number of mistakes on a daily basis.
4. Cloud Systems Will Relieve Pressure From Your IT Department
Integrating cloud systems in your company will also relieve some pressure off of your IT department. Cloud systems are much easier to manage than traditional logistics systems which gives your tech department more time to focus on streamlining your local operations and infrastructure.
All in all, technology is going to have a lasting impact on the logistics industry. Every time it seems like the industry has taken a step forward, there’s a new technology available that can possibly eliminate that step. Keep these three areas of innovation in mind to help prepare your company for the future!