11 Exciting Tech Trends in the Logistics Industry

4 min readJul 4, 2017

Part of the marvel of technology lies in its ability to transport data from one location to another at lightning speed. People can send messages, share photos, and sign documents quickly and efficiently online with the aid of digital tools. However, technology’s impact also extends into the physical space, helping companies manage the distribution of goods and materials.

Digital innovation has transformed and enhanced the supply chain in recent years by introducing advanced systems for freighting, whether by land, air, or sea. Today, new digital trends, such as the following, are shaping the logistics market on a regular basis:

1. Using robots in warehouses

As a result of rapid growth in the e-commerce industry, many businesses now face the task of fielding large volumes of online orders, which usually requires hiring a correspondingly large team of warehouse employees. Instead, retailers have begun utilizing robots to perform the responsibilities of picking orders and restocking shelves, thereby allowing companies to maintain pace with consumer demand at lower costs.

2. Adapting augmented reality

Another method of reducing costs and reducing errors is to adapt augmented reality (AR), the same technology that fueled the phenomenon of Pokémon Go, to logistics. AR technology helps staff members accurately sort through inventory by providing relevant information on packaging and storage organization. The data conveniently appear either on a smartphone device or in the lenses of special eyewear.

3. Automating for efficiency

Whether they use robots or AR equipment, more and more logistics companies are relying on automation to improve efficiency. Machinery and digital tools decrease labor costs while increasing the accuracy of labeling and handling. One company in Europe has seen a 30 percent rise in overall productivity as a result of adopting this technology.

4. Expediting delivery times

Consumers in the digital age have developed new expectations with regard to how soon they will receive their purchased goods. In place of three- or five-day shipping options, retailers in some regions have instituted same-day and even same-hour services. One factor that has contributed to this shortened shipping cycle is 3D printing, which allows for on-site production at locations close to buyers.

5. Matching buyers with shippers

Replicating the business model of many car-transportation companies, new firms have recently formed that connect people with delivery drivers. A person with an item to transport simply files a bid from his or her smartphone and, in real-time, the business matches that person with someone who has the right-sized vehicle to pick up and deliver their load. In this way, technology is shifting the way the economy caters to the demand for moving goods.

6. Employing drones

Drone technology ranks among the more exciting developments in recent years. These unmanned aerial vehicles adapt well to the logistics industry, because they can potentially eliminate the need for trucks and cars on the last mile of shipping, especially in inner cities. In addition, drones can easily complete deliveries to rural areas and help surveil warehouse inventory.

7. Adopting automated vehicles

The topic of automated, or self-driving, vehicles has received a fair amount of attention of late, and the logistics industry is uniquely suited to this technology. Given the long hours involved in trucking, taking advantage of driverless technology would let drivers rest, even if regulations still require a driver to be in the vehicle. Further, automated forklifts and other vehicles that drive in and around storehouses and shipping yards can do so without the same restraints and regulations that currently govern vehicles operating on public streets.

8. Growing reach of IoT

Logistics depends on a network of connections, which makes the Internet of Things (IoT) a natural fit. Some market analysts predict that the number of Internet-connected objects will grow from 5 billion to 50 billion by 2020. This will offer nearly $2 trillion in market opportunity for those in the logistics industry.

9. Tracking quality reliably

A major benefit of IoT is that it enables logistics businesses to monitor the quality of the goods they are shipping. For instance, sensors can ensure that the temperature of packaging remains stable, and other digital tools can notify companies of any tampering activity. As a result, businesses, and consumers, can track the condition of their purchase from departure to arrival.

10. Strengthening telematics

Related to tracking quality is the ability to follow shipments and packages at every stage of their journey. Using sophisticated telematics, logistics companies can determine when a vessel is off course and relay pinpointed arrival times to those waiting to receive a particular load.

11. Applying blockchain to logistics

A relatively new technology used by the financial industry, blockchain is a powerful tool that facilitates safe, trustworthy transactions. Various leaders in the logistics industry have started looking for ways to implement the same concept in their operations to improve transparency and protect against fraud. Because blockchain technology only works when all parties use it, the benefits for logistics may not be fully measurable in the short term.