Right from unmanned robots to drones for online order delivery, supply chain and logistics industries are undergoing a rapid transformation. Just imagine emerging technologies such as wearables, IoT, blockchain, and machine learning are completely transforming several industries. The future of supply chain and logistics is on the verge of rapid transformation.
But realizing the growth potential requires much more than just adding digital technologies to your supply chain and logistics functions. Logistics is the pillar for several industries ranging from retail and online commerce, energy, utilities to health care.
Leading companies know that the digital revolution is completely changing the way business is done, ultimately empowering supply chain organizations to transform their operations into profit centers and thus into growth engines.
It requires leveraging emerging technologies in an integrated fashion to re-imagine the supply chain operations driving differentiation and top-line growth.
Why Cloud is Transforming The Future of The Logistics Industry
A cloud-first environment provides several advantages for logistics firms to achieve better customer experience in terms of speed, lower prices and the ability to track goods. Cloud development services have the potential to provide vast efficiency and flexibility options for the logistics industry.
- Cloud technology services are convenient for Logistics Company because it isn’t as complicated and costly compared to conventional approaches where a company requires hardware and its own facility to store and monitor data.
- In case a logistics company doesn’t have its own infrastructure, a cloud host can be more affordable because the logistics company doesn’t have to spend a lot of money developing or managing its own data center, buying IT equipment and hiring IT staff.
- Cloud can help logistics service providers manage their businesses effectively, allowing seamless communication with suppliers, transportation providers and customers. This is possible due to a cloud host’s global network. Cloud services can improve delivery schedule, as well as effective management of inventory.
- Logistics IT solutions company can assure a complete peace of mind that in case of fluctuation their server requirements will be met by a cloud host.
Disaster Recovery & Contingency Planning
When it comes to business operations, continuity holds the key. Losing data or disruption in business activities can cause significant setback, causing monetary and time loss due to low productivity. In such scenario, hosting data in cloud can protect information and keep information flow through supply chain. Most cloud hosting providers offer high availability coupled with hosting data and systems in different, as well as multiple geographic locations for recovery during natural calamity or disaster. One more element which is essential for business continuity and disaster recovery is backup software to continuously protect your data. Cloud services offer several backup solutions for different environments running on multiple platforms with different technologies and operating systems.
Incorporating cloud-based backup provides offsite data storage and fast access to backups in the event of data loss. In case of disruption or disaster causing interruption in the regular operation of data center, a user’s own logistics software also can be disrupted, which can prove costly. But a cloud host provider ensures that the facility keeps on running should a crisis occur, with backup and other vital services minimizing or avoiding any expensive downtime.
Reducing IT Expenditure
One of the main reasons compelling logistics companies to move towards cloud is reduced costs. Management of IT infrastructure to data centers provides high level of compliance and availability that could be costly to implement in your own environment. Alternatively, cloud hosting providers offer cloud specialists who are adept at keeping IT infrastructure and systems running. Based on your business objectives, requirements and goals, cloud hosting can help you keep costs down by decreasing your IT costs.
Increase Importance of Data
Cloud software makes it much easier for companies to store, collate, synchronize, monitor and analyze the data, irrespective of how huge it is. Cloud makes it much easier for the logistics industry to store voluminous data which is generated from its regular operations.
Technology Trends that will Dominate Logistics Industry in 2019
Big Data Technology
The popularity of Information and technology services in the logistics industry has increased as more and more companies are looking forward to deploy IT resources in logistics and supply chain operations. The coming year will witness logistics companies taking full advantage of big data and blockchain technology. Many small to midsize importers and exporters are collaborating with freight companies using big data when shipping goods globally. With the touch of a button, they will approve shipment specifications, see cargo load/unload, read the temperature, arrival dates and delivery receipts. The adoption of big data will be a game-changer in logistics.
Cryptocurrency: Safe Payment Options And Ease of Cross-Border Transactions
New payment technology will transform the logistics industry on a widespread scale, leading to secure transactions globally. Introduction of cryptocurrency as an alternative form of payment, will gain prominence in the logistics industry. This will allow the much needed payment flexibility.
Globally, the launch of cryptocurrencies such as bitcoin will become widely accepted, leading to safer mode of payments with the ultimate goal of maintaining customer privacy. Whether a major financial institution introduces its own cryptocurrency is yet to be ascertained, but the logistics industry will be ready. For the logistics industry, cryptocurrency will provide seamless cross-border, international payments options in a safe manner.
Smart Commerce with Blockchain
Blockchain technology will allow you to negotiate smart contacts with suppliers that clearly define terms, conditions and the mode of functioning between the two parties. This emerging technology will improve transparency among different parties involved, replacing paperwork, maintain access to original information, eliminate intermediaries, as it enables direct communication between participants.
While several emerging technologies are making headway, the future of logistics industries depends on companies who are ready to take a leap. In order to gain a competitive advantage, logistic IT solutions company must leverage the available technologies and incorporate them in their core systems.