It is an unwritten rule of every industry to be on their toes, reshape their organization's working technology, conduct business, and look to the future.
This is valid for the logistics industry as well.
Remember the time of Covid-19, the logistic industry had to face a rough year. The hiccups caused by Covid-19 led to large supply chain disruptions because of all the confusing new rules and restrictions, and fierce shifts in customer demand.
Of course, the logistics industry has to keep moving forward. The logistics industry has to deploy new technologies to steadily improve the condition of its services to remain competitive.
This will also lead to an evolution in the logistics industry, which means they have to adapt to overcome the challenges.
Today’s blog will address some of the most pressing pain points and key trends in transportation and logistics.
About the Transportation Industry
The transportation industry is one of the prominent sectors that contribute to the country's economy, and it deals with the movement of people and products. It includes rail lines, shipping, trucking, logistic firms, and everything else that comes under transportation infrastructure.
Shipping goods is a consequential part of the economy in every country. FYI, the global transportation industry is evaluated to grow at a CAGR of 3.4% till 2027.
The decisive point to success in the transportation and logistics business is providing cost-efficient, flexible, and structured services.
That is why the transportation and logistics industry should adapt to the key trends that can help them compete with other delivery players present in the market.
7 Key Trends in Transportation and Logistics
Mobility-as-a-Service (MaaS) Becomes Mainstream
The MaaS alliance is defined as the merger of several forms of transport services into a sole mobility service available to everyone on demand.
One major aspect of MaaS is the integration of multimodal transportation that fixates on the customer’s destination besides the mode of transportation.
It also means that end-users will have more ingress to real-time data to make a knowledgeable decision about their choice of transportation and be able to pay using one universal platform.
It is, I guess, one of the massive trends in the transportation and logistics industry. Since these platforms in a cloud-based system require a software-as-a-service (SaaS) model, it opens up infinite possibilities for the transportation and logistics industries to scale and innovate their digital resource usage.
The cloud-based system allows you to gain higher profitability and surpass the typical returns of an on-premise system’s capabilities.
Because of SaaS's introduction, the whole process becomes more cost-efficient across all business functions, such as sales and marketing, finance, and legal.
Transparency and Anti-Theft GPS
In today’s time, all eCommerce, retail, and logistics companies are giving more attention to increased transparency. Thus occurs the adoption of tracking technologies and adjustments for improved traceability.
It is the major driving trend in the transportation and logistics industry. For example, the Anti-theft GPS is meant to receive actual-time locations of entire fleets and segregate items in transit.
These extra security pacts will also prevent all types of damage across the board.
The self-driving truck technology is still undergoing perfection. It has to conquer certain barriers, such as enhancing driverless software to make things more efficient on urban roads with heavy loads.
However, it is also one of the future mobility trends. For the future, the transportation business should buckle up for upcoming technology modifications in the transportation space and should start equipping their trucks with self-navigating management systems.
With the implementation of AI, vehicle-to-vehicle (V2V) communication among trucks will become possible and will make the vehicle smarter.
Nevertheless, 5G technology will effectuate the adoption of self-driving fleets.
In fact, the future has come. Tesla’s electric semi trucks are equipped with autopilot features which will greatly facilitate the driving process. And big corporations like Pepsi and Walmart have already ordered Tesla’s semi trucks for commercial usage.
Regulatory compliance is more of a necessity than the latest trends in transportation. All commercial transport companies should always stay updated on the current rules and requirements changed, introduced, and adopted by the local, or the federal government.
Blockchain in Logistics
Blockchain is indeed a transformative technology trend in the transportation and logistics space. One of the quite obvious use cases of blockchain technology in the transportation industry is ensuring the exactness of performance history.
So, when a truck gets sold for the second or third time, the user will have questions about how the vehicle was used in past. And since blockchain is transparent and immutable, everyone involved in the transaction will be assured that the information regarding the truck is trustworthy.
One other use case of blockchain is capacity monitoring. Because the cost of transportation depends on the volume of cargo. The volume can be determined through IoT sensors, and the data can be calculated for the shipment cost.
The rise of eCommerce businesses will lead to increasing demand for address deliveries and transportation.
After all, providing good services also means being more competitive. For instance, the heavy trucking business should add small vehicles to its fleet to conquer a bigger portion of the market.
What We Offer
This is the wrap of the 7 key trends in transportation and logistics. Here at NitroXpress, we keep a close eye on such trends and innovations to find different ways to help our clients build dynamic and connected logistics.
NitroXpress is a third-party logistics company that performs transportation while embracing technology.
Do check out the NitroXpress website for our logistics and shipment services and contact us.