Tech Trends in Transportation and Logistics

Technology trends in the transport and the logistics industry

Technology trends in the transport and the logistics industry

COVID-19 pandemic had shifted our daily life by adding new rules that we have already got used to and, honestly, in some spheres changes have come in so handy that we don’t want to return to our previous lives. There was already a big technology advancement in the logistics industry even before COVID-19 thanks to the process of digitization. And yet, it was forcibly accelerated by lockdowns and instead of years all organizations had to adapt to these changes in months. Now it is hard to imagine a daily routine without online shopping that provides wonderful possibilities to have handmade clothes from the other side of the Earth or food sets from the nearest shop. E-commerce sales are expected to grow up to 7.4 trillion dollars globally in the next 4 years, which means 50% of growth. 

Current “Silk Ways” lie the way across the length and breadth of our planet, and logistics has always been built deeply in the history of humankind.  However, the way this market is conducted nowadays is strikingly different: from collaborating with robots, drones and artificial intelligence (AI) up to instant transactions all over the world. With true digital natives gradually filling the market, which will soon be loaded with customers for logistics industries and organizations, it is important to keep pace, continue upskilling in order to stay competitive.

Automation is the way to optimize manual tasks and, as a result, improve efficiency. According to estimates, machines do 29% of workplace tasks now, this rate will almost double to 52% by 2025. Without a doubt, it modifies the way people work. Organizations need more flexible systems that enable them to unite Big Data, robotics and people into one harmonic coexistence. This problem can easily be solved by Cargo/Logistics App Development that helps to streamline management and regulate all data. The market of IT decisions for logistic companies is booming and there already exist hundreds of different projects to meet all the challenges:

- GPS tracking for delivery trucks that enables you to keep an eye on the shipment in real time;

- delivery route planning in automatic mode based on orders and available drivers considering time slot, weight, vehicle type to reduce freight costs;

- automatic calculation of the best price for customers and monitoring the nearest available drivers;

- apps that help organizations to find a driver in real time and set the rate for the working hours.

Software development in the logistic industry helps to be productive 24 hours a day, and, of course, AI reduces and even eliminates errors caused by human error.

Some trends in the industry already exist, but nevertheless they need further development. For example, delivery drones or autonomous vehicles and electric trucks, or all in one - electric, connected autonomous vehicles. Such kinds of transport reduce the environmental footprint and sustainability is currently a significant trend. By the time you read this text, the European government has already resolved to replace half of all freight delivery by electric trucks in the near future. All autonomous trucks are integrated into one system which is much more efficient, in addition, it is able to coordinate traffic flows, which makes the infrastructure used 100%. These are budding trends, just like many others that are used in some parts of the globe but anyway not fully realized yet, as cryptocurrency for example. But hopefully it will be down the line.

Sometimes the speed and quality of the working process is hampered by human possibilities and resources, and right now new technologies are upgrading the logistics industry and are taking it to the new level with higher standards.

Blockchain Technology

The logistic market is a huge space with millions of components, which sometimes are so fragmented that it becomes difficult to work fast and efficiently. The problem today is the absence of a unified system. The solution can lie in blockchain technology, as it is secure and supplies reliable ledgers that anyone can trace. Smart contracts that blockchain provides are very reasonable to use in the logistics industry, in particular as there are a lot of typical transactions. One of the blockchain benefits is automatization of the whole procurement process and as a result there is less paperwork alongside. That saves time and money. Transparency is another positive side of blockchain. Consumers can easily track the delivery and companies are able to share confidential data easily and quickly.

Artificial Intelligence and Machine Learning

No doubt that AI and ML are in demand in the logistics industry. The large data that companies should cope with may be a basement for the further analysis and its study helps to find out trends in order to make some useful changes in the supply chain. AI is very helpful in forecasting demand with the purpose to allocate resources better, or analyzing the information about more fitting locations for warehouses. Machine learning speeds up the slotting system, arranges workforce planning. Many companies around the world have invested in AI and ML because this powerful technology simplifies many routine but essential processes and improves the supply chain.

Internet of Things (IoT)

After e-commerce growth, the rise in demand for IT such as the Internet of Things is expected. Thanks to the IoT technology it is easy not only to track any shipment in real time through cloud services but also monitor all the environmental conditions like light or heat that are sometimes very important. By the small sensors which are the size of a millimeter, parcels can send, receive and store information. No more scams and thefts. The most cost-efficient solution is the feature of  IoT sensors to constantly check the equipment conditions and notice any failure before someone would notice it and fix it in time.

As it was said before, human resources play a great role in the long supply chain. The key issues for the logistic companies consist in the ways they can optimize work and implement IT bespoke development that will significantly improve productivity. Such apps created by Magora are able to place and search for orders, check counterparties, insure and control the delivery process, exchange documents and make analysis of the work done. It is essential to know where most frequent requests come from and whether the clients come back for the service in order to expand the reach in future. It is very comfortable to see and analyze the statistics of the sales dynamics to make decisions and be prepared for annual holiday shopping. Magora creates advanced technologies that easily deal with Big Data, platforms with intuitive design to be in touch 24/7 with clients by chatbot and apps to get all processes under control with fast access and ability to monitor multiple tasks at once.


Alex G.
June 16, 2022
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