“New entities – from e-commerce and electronics to automotive businesses – are investing in and using IoT, artificial intelligence, automation and robotics technologies to develop innovative warehousing and transportation solutions. These are positive trends, And it can aid the resilience of global supply networks in the face of current crises.
These include a global scarce human resource for warehousemen and drivers, growing demand for logistics services, particularly driven by increasingly e-commerce, and a desire to reduce the environmental impact of distribution. In addition, the recent pandemic has caused demand to skyrocket; The top 10 grossing companies are from the e-commerce and pharma sectors,” said Dr Patel, who also heads the ‘Inter-disciplinary Decision Science and Analytics Lab’ (IDEAL) at IIM-Vizag. The Faculty of Decision Science said that traditional logistics providers are accelerating their digital transformation due to these social issues and the penetration of competitors. “Many of the world’s largest global logistics services companies understand the urgency as technologies can push this sector from labor-intensive to more automated-process, allowing logistics to be increasingly performed by non-logistics companies. In some cases, logistics giants are partnering with tech firms, transforming the logistics industry, and seeking spin-off opportunities to produce new enterprises outside of transportation and warehousing, all while requiring labor. Addressing urgent social challenges such as scarcity and sustainability. This transformation brings together leaders in logistics and technology, and now the entire logistics operations will form LogisTech firms (Logistics + Technologies), ” Dr Patel said.
He said the rise in Internet shopping during the pandemic, as well as increased demand for next-day delivery, has spurred efforts to use more automated systems and robots in warehouses around the world. “A total of $36 billion is expected to be invested in warehouse automation technologies in 2021, from 2020 through 2020. This trend is expected to continue, but the need for full automation is accurate for the wide range of tasks currently performed by employees. Knowledge will be required, such as sorting, selection and packaging,” said Dr Patel.
“Currently, around the world and especially in the more important markets of developing countries, many warehouse operations are fine-tuned and dependent on the skills and experience of workers. Furthermore, processes vary by occupation and type, Whether it is for resources, manufacturing components or final goods. Companies are hoping to use IoT to collect data on the movement of people and goods in warehouses as part of their partnership. Next, it will use AI. To analyze them and design processes to reduce labor input while increasing warehouse performance. Tech firms provide cutting edge technology such as 3D sensors that can detect things in space and time and AI which Can collect tacit knowledge of highly trained workers. Creation of such a large database will aid in the drive to reduce accidents and optimize personnel in logistics facilities and transportation and distribution. Initial focus will be on electrical machinery and electronics, later on semiconductor and along with the vehicle supply chain,” said Dr Patel.
Developing remote-controlled robots to perform manual labor in areas where manual labor is difficult, remote, or where labor shortages are acute, would be another important area of collaboration. The first phase may include remote robotics control warehouse operations at LogisTech – for example, picking operations – through the use of technologies such as robotics control and 5G to improve efficiency. In addition, the digitized supply chain is more eco-friendly and cost-effective. In addition to improving the efficiency of logistics facilities, LogisTech firms hope to reduce the carbon footprint of supply chains. To reach carbon neutrality by 2050, firms must actively create ways to achieve carbon neutrality by 2050. These LogisTech firms will combine their ability to record data and visualize emissions and logistics processes, resulting in a more efficient and effective process.
Also, initially, these data-driven LogisTech firms are appearing in the pharmaceutical and semiconductor logistics space. In addition, cutting-edge technologies, such as encryption, will provide the type of data protection that is needed in pharmaceutical shipments and the exchange of sensitive information on open platforms, such as the Internet of Things. Due to digitization, the barriers that dissolve across industries can be threats or opportunities depending on the situation. The positioning of the global logistics sector should be viewed as an opportunity to strengthen the company’s position as a leading worldwide provider of logistics solutions.
Therefore, a partnership in a longstanding relationship between the logistics firm and the technology firm is essential for mutual survival in the business transformation of the world retail supply chain for more LogisTech firms to come along, Dr. Patel concluded.
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