In 2023, over 90% of organizations reported adopting or planning to implement new technology in logistics or supply chain operations. Entering 2024, the need for advanced solutions is to grow exponentially, as seen in the supply chain management software market changes.
According to the latest data insights, the SCM software market will hit US$20.27 billion by 2024. With an expected CAGR of 4.52%, the market volume will reach US$24.19 billion in 2028.
From automation, Artificial Intelligence (AI), and sustainability solutions to blockchain and the Internet of Things (IoT), businesses leverage innovations. Operating with cutting-edge technology, 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 in 2024. Read on to learn more about their benefits and success stories.
Top Logistics Technology Trends 2024
The most crucial technology trends in logistics in 2024 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 2024: Automation and Robotics
Automation and robotics open our list of technology trends in logistics industry. According to the MHI Annual Industry Report (2023), they remain the leading innovations with the potential to either disrupt the industry (17%) or provide a competitive advantage with the power of process automation. Nearly 80% of respondents from the report plan to invest in integrating robotics and automation technologies into their operational frameworks.
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 2024: AI and ML
Artificial Intelligence is currently considered the most influential innovation, indicating its readiness to bring about substantial and transformative changes in the industry.
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 2024: Blockchain
According to the Market Research Future Report, the blockchain supply chain market is expected to grow at a compound annual growth rate (CAGR) of 45.55% from 2023 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 2024: Internet of Things (IoT)
As stated in the 2022 statistics, 30% to 50% of food was 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.
In the 2023 supply chain report, 68% of industry leaders reported willingness to adopt the Internet of Things technology.
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 2024: 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.
A 2022 research revealed that 64% of supply chain executives anticipated a beneficial operational impact from AR/VR technologies.
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%.
Businesses report reduced errors by employing AR/VR technology, utilizing instructions overlay, remote assistance, and enhanced planning and visualization. This implementation has led to a productivity surge of over 40%. New studies in retail have shown that engaging with items featuring AR experiences results in a 94% purchase rate increase.
6. Transportation Technology Trends 2024: 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 2024: 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 Gartner research, companies utilizing digital twins have observed a 30% decrease in supply chain interruptions in 2023. 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 2024, 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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