Technology seems to be ever-changing with new advancements emerging each year. As technology evolves, each industry must progress with it to stay up to date with these innovations. How exactly does technology advancement affect the logistics industry? What does technology have in store for 2024?
The logistics robotics market is expected to continuously increase for the next decade, from a value of 6.6 billion to about 18.5 billion by 2029. Logistics robotics can assist in ensuring that demands are met amidst growing supply chain disruptions and labor shortages. Even more than that, with the help of robotics, workers can focus on ensuring accuracy and not waste their energy on strenuous tasks that leave more room for human error.
Robotics allows logistics companies to work continuously without the overuse of human labor, as well as aid in supply chain processes that result in greater productivity with less need to have employees work longer hours. With this technology, companies struggling to keep up due to the labor shortage can get themselves back on track.
Artificial Intelligence (AI)
Artificial intelligence (AI) has emerged in the logistics world as a growing force. It has transformed the way businesses manage their supply chains and handle operational efficiency. AI allows for businesses to:
- Navigate demand fluctuations/forecasting – AI can help predict demand, allowing the business to properly optimize its inventory.
- Route planning – AI can plan the best route to help companies to reduce their fuel and carbon emissions.
- Continuous optimization – AI works to continuously examine data and allow logistics companies to adapt their strategies to overall changing conditions.
AI has an array of functionalities that can be utilized in logistics processes, all of which achieve the same goal: easing the difficulties of supply chain management.
The U.S. trucking industry has been experiencing a driver shortage for quite some time. It’s estimated that the number could nearly triple by 2026 to a shortage of about 174,000 people. Autonomous vehicles could help bridge the gap, potentially shrinking the shortage that many trucking companies are currently struggling to navigate. Because about 65% of consumable goods in the United States are moved via truck, there is a need for these trucks to continue moving despite this shortage.
Piggybacking off the previously mentioned labor shortages, autonomous vehicles can function around the clock, unlike the use of human drivers, who legally require breaks. This can help alleviate workers from feeling overworked and achieve their desired work-life balance.
As we continue to journey through 2024, this year already holds great potential for the logistics industry. These advancements in technology have the possibility to assist in logistics processes that have continuously been obstacles for logistics professionals around the globe.
- Explore the Top 10 Logistics Trends in 2024 (Startus Insights)
- 3 Supply Chain Technology Trends That Will Shape 2024 (LinkedIn)
- Emerging Tech Trends: Revolutionizing the Future of Logistics (Medium)
- Logistics Robots Market Size, Share, & Growth Analysis (Stratview Research)
- Autonomous Trucks Disrupt U.S. Logistics (McKinsey)
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