In 2023, over 90% of organizations are adopting or planning to implement new technology in logistics or supply chain operations. From automation and Artificial Intelligence (AI) to blockchain and the Internet of Things (IoT), businesses leverage innovations. They aim to optimize their processes, improve efficiency, and meet ever-evolving customer demands.
Acropolium is a bespoke software vendor that delivers advanced solutions for logistics and transportation. Closely monitoring new technology and logistics allows us to:
- to build an efficient IoT-based fleet tracking app,
- automate an international trade platform,
- modernize a transportation management system.
In this article, we explore the top logistics and supply chain technology trends 2023. Read on to learn more about their benefits and success stories.
Top Logistics Technology Trends 2023
The most crucial technology trends in logistics in 2023 include:
- Automation and robotics
- Artificial Intelligence (AI) and Machine Learning (ML)
- Blockchain
- Internet of Things (IoT)
- Augmented (AR) and virtual reality (VR)
- Autonomous vehicles and drones
- Digital twins
1. Warehouse Technology Trends 2023: Automation and Robotics
Automation and robotics open our list of technology trends in logistics industry. According to the MHI Annual Industry Report, they remain the leading innovations with the potential to either disrupt the industry (17%) or provide a competitive advantage (39%).
Automated picking and sorting systems, robotic palletizers, and autonomous guided vehicles (AGVs) streamline warehousing operations and reduce human errors. This technology for supply chain management enables your employees to focus on strategic efforts and minimize risks in hazardous environments.
E-commerce giants Amazon and Alibaba consistently implement new trends and technology in logistics. For example, they utilize a vast fleet of robots in their fulfillment centers for sorting, picking, and packing items.
DHL also doesn’t stand aside; one of their recent investments includes $15 million to automate warehousing in North America through a collaboration with Boston Dynamics. Following IT trends in the logistics industry allows the company to increase labor productivity by 50-100% and facility throughput by 30%.
2. Transportation Technology Trends 2023: AI and ML
AI and ML algorithms can analyze historical and real-time big data, identify patterns, trends, and insights, and generate predictions through chatbots. Organizations apply logistic technology trends to make more intelligent decisions, improving efficiency and effectiveness.
Early adopters who have implemented AI technology in logistics have achieved remarkable improvements in their logistics operations. These advancements include reducing logistics costs by 15%, optimizing inventory levels by 35%, and enhancing service levels by 65%.
UPS’ ORION (On-Road Integrated Optimization and Navigation) system utilizes ML to reroute drivers and reduce mileage. DHL uses its “Resilience360” platform for demand forecasting, route optimization, and warehouse automation. Such tech trends in the logistics industry lead to cost savings and faster deliveries.
3. Technology Trends in Supply Chain 2023: Blockchain
According to Market Research Future Report (MRFR), the blockchain supply chain market is expected to grow at a compound annual growth rate (CAGR) of 45.55% from 2022 to 2030. And this is not surprising, considering how much this supply chain and logistics technology enhances transparency and security.
What makes blockchain different from other warehouse technology trends? With it, each product or item gets a unique digital identity with an origin, manufacturing details, certifications, and ownership history. It allows for transparent and real-time visibility into the movement of goods from the point of origin to the final destination.
Blockchain ensures secure and encrypted data exchange between the parties involved, reducing the risk of data manipulation or unauthorized access. Smart contracts, a feature of IT trends in SCM, automate and enforce compliance with predefined rules, reducing the need for manual intervention.
What about big brands implementing technology trends in transportation? Maersk partnered with IBM to develop the blockchain platform TradeLens for better data visibility and reduced paperwork. Walmart also collaborated with IBM for Food Trust, enabling it to track and trace the movement of food products from suppliers to stores.
4. Technology Trends in Warehousing 2023: Internet of Things (IoT)
Did you know 30% to 50% of food is lost before reaching store shelves? However, using technology trends in supply chain management, the company effectively handles transportation, minimizing waste and reducing the number of lost items.
Attach sensors, tags, and trackers to your shipments, pallets, or containers, enabling real-time tracking of goods. Follow IT trends in transportation to get accurate and up-to-date information on the products’ location, status, and condition. IoT helps identify potential issues, coordinate supply chain processes, and optimize inventory levels.
Schneider Electric uses IoT sensors to monitor energy usage and improve fleet operations. Volvo and Nissan also utilize tech trends in supply chain. While Volvo tracks vehicle shipments, Nissan implements an IoT-based warehouse management system in the UK.
5. Technology Trends in Supply Chain Management 2023: AR and VR
As tech trends in transportation, AR and VR provide several benefits. They create a safe and controlled environment for training, allowing employees to gain hands-on experience without the risks associated with real-world operations.
It leads to significant cost savings by eliminating travel expenses and boosting productivity. Also, companies adopt transportation technology trends to reduce CO2 emissions, contributing to environmental preservation.
DB Schenker uses AR headsets to guide workers in picking and packing processes to optimize workflows and minimize errors. Walmart employs VR headsets to simulate real-world scenarios, such as Black Friday sales or handling peak seasons. Applying IT trends in supply chain, staff gain practical experience and improve their skills.
Studies show that VR training increases confidence and enhances retention, improving test scores by 10% to 15%.
6. Transportation Technology Trends 2023: Autonomous Vehicles and Drones
Autonomous vehicles and drones are a significant part of SCM technology trends, focusing on reducing the risk of accidents, cutting expenses, and improving delivery times. They have GPS, collision avoidance systems, and advanced flight control tools to ensure safe and precise navigation.
Labor costs comprise around 50-60% of the last-male delivery expenses, as the driver’s price can range from $16 per hour. But supply chain management technology trends don’t stand still.
Today, a single package drone delivery costs $13.5, but with the development of tech trends in SCM, it could range from $1.50 to $2. In the future, it will become possible through unmanned traffic management systems and sense-and-avoid solutions.
UPS has partnered with TuSimple and Waymo to deploy self-driving trucks for transporting packages on certain routes. These autonomous vehicles use cameras, lidar, and radar systems to navigate and make deliveries with minimal human intervention.
Drones are not a new technology in logistics industry, Domino’s Pizza made history by delivering pizzas using them in 2016.
Amazon Prime Air had set a goal of 10,000 drone deliveries for 2023, but they have only completed 100 because of Federal Aviation Administration (FAA) restrictions. At the same time, Walmart has successfully carried out more than 6,000 deliveries across seven states in the US.
7. Tech Trends in SCM 2023: Digital Twins
Regarding IT trends in supply chain management, it would be a huge mistake to forget about digital twins. They are virtual copies of physical assets and processes, allowing real-time monitoring and performance improvement.Freight brokers optimize routes, manage inventory better, and make agile decisions using this technology.
According to research, digital twins help businesses increase revenue by 10%, speed up time to market by 50% and enhance product quality by 25%. What companies follow the following technology trends in warehousing?
DHL has embraced digital twins to optimize warehouse operations and improve process visibility. This technology used in supply chain management provides the vendor with real-time insights, process optimization, and predictive maintenance.
FedEx Office collaborated with Accenture and River Logic to visualize different scenarios and enhance printing efficiency and delivery. By implementing supply chain technology trends, FedEx Office aims to create more valuable interactions, reduce errors and damages, and improve the overall experience.
Final Thoughts
As we enter 2023, the logistics industry revolutionizes how goods are transported, managed, and delivered. Logistics companies embrace tech trends in warehouse, transportation, and other supply chain aspects to streamline operations, enhance efficiency, and stay competitive.
Whether you want to implement AI/ML, IoT, blockchain, or other technology trends in supply chain, contact Acropolium. With GDPR compliance, ISO-certified processes, and serverless solutions, we deliver platforms that are not only innovative but also reliable and secure. Also, we offer a subscription-based service to make the development process comfortable for your budget.
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