Digital Transformation in Logistics

May 2022

Supply chain localisation, e-commerce boom and growing focus on sustainability initiatives are driving changes in the logistics industry. The briefing examines how digital tools, process automation and autonomous driving technologies can help logistics providers to improve operational efficiency, reduce costs and meet changing needs of the customers.

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Key Findings

Supply chain changes impact logistics

Anticipated changes in global supply chains will impact the global logistics industry. Logistics providers will have to offer more flexible delivery networks.

E-commerce drives demand for last-mile delivery

The boom in e-commerce will continue to drive demand for last-mile delivery services. Logistics companies are expected to invest in Process Optimisation and improved route planning to meet demand.

Digital tools promise cost savings for logistics providers

Digital tools, such as data analytics and IoT technologies, promise significant cost savings for logistics companies. Better route planning, flexibility and shorter delivery times are contributing to the potential gains.

Automation tools to help alleviate worker shortages

Logistics companies are embracing automation tools amid rising labour costs. Warehousing companies have been at the forefront of process automation, with major areas of application including heavy and repetitive physical tasks.

Logistics providers invest in rapid delivery methods

Changing supply chains and e-commerce growth are encouraging delivery companies to invest in new transportation methods. Logistics companies are eyeing autonomous vehicles, 3D printers and drones as tools to speed up the delivery process.

Logistics companies can support sustainability claims

21% of companies claim complex supply chains as a primary roadblock to reaching their sustainability goals. Logistics companies can play a key role in supporting their partners’ sustainability initiatives.

Introduction

Scope
Key findings
Trends driving technological changes in logistics
Companies invest in supply chain resiliency to avoid future disruptions
Production localisation to lift demand for warehouses and road transportation
E-commerce growth to fuel demand for the last-mile delivery
Logistics companies will need to invest more into sustainable transportation networks
Technologies enabling changes in the global logistics network

Digital Tools in Logistics

Cloud computing to help increase responsiveness and offer new business models
Case study: Move to the cloud helped JB Hunt to improve customer satisfaction
Data analysis tools can help logistics companies to reduce operational expenses
Case study: UPS applies big data analytics to optimise routes
IoT technologies offer improved delivery times and lower costs to the buyers
Blockchain technology to help improve security and build more trust

Process Optimisation

Artificial intelligence tools help to boost efficiency of logistical operations
Automation and robotisation to help reduce labour costs and tackle staff shortages
Case study: DHL Supply Chain expands collaboration with Locus Robotics
Case study: ArcBest and NFI Industries deploy remotely operated equipment
Digital technologies help to tackle major challenges in logistics operations
Automated solutions helping to optimise logistics processes
End consumers are expected to benefit from lower logistics costs

Last-Mile Delivery

Growing demand for last-mile delivery services pushed by the boom in e-commerce
Autonomous vehicles look to disrupt last-mile delivery services in the future
3D printing can shorten supply chains and reduce carbon emissions
More efficient last-mile delivery can improve business bottom lines
Aramex and what3words partnership to provide more efficient last-mile delivery

Sustainability Trends

Consumers prefer green solutions and sustainability
Corporate preferences to influence changes in logistics
Improved route planning in logistics to help reduce environmental impact
Drones to increase efficiency and help to reduce costs across the supply chain
Case study: Amazon Prime Air uses drones in delivery

Conclusion

Summary 1 key trends
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