Technology is changing the logistics industry dramatically. On-demand apps such as Uber and Instacart have invested heavily in location and mapping technologies that have been able to provide estimated order times and costs. This instant-delivery model has changed customers’ expectations of faster and better shipping, which has affected every type of consumer delivery. The only way for logistics and transportation companies to achieve this level of service is by investing in technology.

A More Efficient Logistics Industry Despite Challenges

Given the issues that the industry is up against, supply chains must become more effective in moving shipments. A shortage of drivers for transportation companies, as well as a strong dependence on fossil fuels, are some of the challenges that the industry has faced for the last several years. Regulations on the number of hours of service for drivers are also making improvements to the speed of deliveries difficult.

Technology as a Path to Improvement

The use of technology in logistics can make the delivery process more efficient, less costly, and environmentally friendly.

Autonomous Vehicles: One way to help solve some of the driver issues is with autonomous vehicles. Some of the benefits of self-driving vehicles include better delivery time frames and better service to customers. Tests have been conducted with self-driving trucks to haul freight on several highways and local roads. Drones are also being tested to be able to help with the last segment of delivery.

Cloud-based Systems: Technology solutions that are cloud-based can help to improve efficiency. A WMS (Warehouse Management System), for example, can send updates to customers on their shipment status, changes in orders, and give notifications to shippers and carriers.

Fleet Management: Efficient fleet management involves real-time data analysis, routing, and predictive analytics. Modern fleet management systems are successful because of artificial intelligence (AI) and machine learning. These applications can solve issues such as:

• – Finding the best route based on historical and current data.
• – Enabling the tracking and behavior of drivers.
• – Allowing managers and drivers to change routes to avoid downtime and fuel costs.
• – Improving the experience for the customer.

Last-mile Services: Route optimization platforms can improve delivery commitment by better scheduling delivery and pick-up routes and make changes and updates for drivers who are already en route. Fleet management solutions help logistics companies to reduce downtime and save costs on maintenance and repairs.

Supply Chain Optimization:  Companies today have become more frugal with their resources. The supply chain needs to be optimized in order for a logistics company to be successful. Optimizing supply chain special software allows logistics companies to maximize the optimization of each element of the supply chain such as operations, purchasing, and distribution. Companies are also able to achieve zero waste due to the strategic planning of inventory and purchases.  Technology enables supply chain managers to analyze supply and demand and make the best decisions about the delivery process to minimize fuel consumption.

Predictive Maintenance: Advances in technology such as AI (artificial intelligence) and machine learning are the future of logistics. Predictive analysis and maintenance are ways that AI and machine learning can be used in logistics. Predictive maintenance allows a company to better plan for the maintenance of a fleet or warehouse machinery.

An app that is powered by AI compiles data on vehicles’ condition and then makes suggestions about when parts need to be replaced in order to prevent costly repairs, breakdowns, or downtimes. Predictive analysis is key for companies that want to optimize their supply chain and lower costs.