How Logistics is Embracing Automation

The Internet of Things is a connection of physical devices that monitor and transfer data via the internet and without human intervention. How does IoT in logistics enhance visibility in every step of the supply chain and improve the efficiency of inventory management?

The implementation of IoT is relatively high in asset-intensive industries like manufacturing, transportation, and utilities. Let it be stationary or mobile, these assets are now becoming a part of a connected ecosystem, where they can interact and share vital information with each other.
Shipment vehicles like trucks and ship vessels are movable assets that are becoming a crucial part of the IoT network and leaving a long-lasting dent on the logistics and transportation industry. Both of these industries along with warehousing were the primary movers to embed connected systems even before the term “Internet of Things” was coined. This early adoption has enabled these sectors to flourish and further empower other industrial segments to revamp their supply chain management and other end-to-end processes. IoT is being extensively used for Communication systems, Vehicle tracking, Supply chain monitoring systems and IT security.

Please elaborate on how AI-based forecasting solutions allow managers to plan supply chain processes and find ways to reduce operating costs. Also, how are Self-driving AI and smart road technologies are affecting a positive shift towards delivery service automation?

AI based forecasting tools are helping companies to pair demand with supply. The bottom up and top down demand forecasting using AI tools help reduce operating cost by improving demand accuracy thus reducing inventory holding cost. In some industries AI based forecasting has helped companies to transition to Just in Time (JIT) inventory models reducing operating costs and improving bottom line.

Last-mile delivery is the most important part of logistics as it is directly related to customer satisfaction. Please elaborate on the various problems faced during this phase and how can companies overcome them.

Last mile delivery still remains the weakest link in the entire logistics chain. Proper route planning, availability of trucks, and load factors impact the cost of transportation. Some of this cost is passed on to the consumer by the companies. This increases the overall cost of purchase. This can be overcome by implementing transportation optimization solutions. These solutions are robust and apply AI/ML to solve the transportation problems based on historical data. Operations Research model is built into the algorithm.

Please elaborate on how Warehouse automation increases efficiency, speed, and productivity.

Warehouse automation tools improve productivity and increase efficiency by reducing human errors. AT each stage of automation it is seen that error reduces by more than 70%. AGVs and Robotics allow precision pickings reducing error rates by more than 90%.

Logistics services are becoming extremely vital for price-sensitive customers who require a wider choice of high-quality products with timely delivery. Where do you see the market for the Logistics Industry in the near future?

The logistics industry is poised for high growth in the next 3-5 years. With more companies jumping on the logistics automation bandwagon, the CAGR is expected to be in double digits. With Covid-19 now at the endemic phase in India, more logistics automation will happen now. All this will happen provided the government takes cognizance of the issues faced currently and eases rules and regulations and allows free movement of goods as promised during implementation of GST.