With the rising number of items ordered online, the supply chain sector had to change to accommodate the new demands. As the consumers were forced to adopted e-commerce shopping due to social distancing restrictions and lockdowns, the pressure was on supply chain and logistics companies who had to keep up with the rising demands. The supply chain companies had to adopt innovative technologies to surmount these challenges. Here are some of the technologies that are some of the innovative technologies:
Blockchain has been among the most talked-about technologies due to its potential to change different industries. In 2019, the spending on blockchain solutions was at 2.7 billion. However, this is expected to hit over 11 billion, according to DHL. This technology is fast-growing in terms of adoption and is reshaping global logistics trends. As challenges associated with security in supply chain networks increase, blockchain technology is helping companies enhance security and build a paperless and data-driven environment. In 2021, blockchain technology will be adopted more as organizations seek to reduce the cost of operations.
- Digital training solutions
With the pandemic, e-commerce companies have seen a rise in the number of buyers forcing the companies to hire new employees to increase order fulfillment speed. Companies such as Amazon must train their employees on what is needed in their new engagements with the new employees. The coronavirus pandemic has disrupted in-person meetings, training, and hiring processes forcing companies to move to digital training solutions and virtual/remote work. In 2020 alone, Amazon embraced digital hiring and training, which saw them hire more than 1000 tech professionals to automate recruitment, hiring, and training. This is the same for other companies.
- Warehouse automation
Although warehouse automation was already gaining momentum pre-covid, the pandemic has increased the pace at which supply chain companies embrace automation. In 2019, a report predicted that the warehouse automation market would grow at 12.6% CAGR in the next five years. This seems to be the direction we are heading as more business leaders embrace automation as a game-changer with regard to cost-reduction and efficiency. Companies such as Amazon and other e-commerce giants are investing heavily in automation to enhance efficiency and minimize operations costs.
- The Internet of Things (IoT)
Accurate tracking and management of goods on transit are one of the targets of any logistics company. This can only be achieved by having cutting-edge technology, and this is where IoT comes into play. The IoT allows logistics companies to track goods on transit and manage transportation. IoT connects various devices that logistics companies use to monitor their goods.
- Cloud computing
Cloud computing is part of the ongoing digital transformation in logistics. The growing digital logistics has necessitated cloud-based software-as-a-service (SaaS) solutions that will become an integral part of logistics companies. This will minimize communications hurdles and security as well as collaboration for logistics providers.
- Big data
Big data is changing things in many industries, and logistics is one of them. Logistics companies are using big data to optimize routing, streamline operations and factory functions, and enhance transparency in the entire supply chain. This is a good thing for logistics and shipping companies who need the right information to make the correct decisions necessary for success.