{"id":8634,"date":"2021-02-11T07:05:12","date_gmt":"2021-02-11T12:05:12","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=8634"},"modified":"2021-02-10T14:07:52","modified_gmt":"2021-02-10T19:07:52","slug":"3-trends-driving-logistics-automation","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/3-trends-driving-logistics-automation\/","title":{"rendered":"3 Trends Driving Logistics Automation"},"content":{"rendered":"

\"\"Technological advancement has come a long way.\u00a0 Artificial Intelligence<\/a> is taking charge of a number of repetitive logistics tasks.\u00a0 Organizations are benefiting from Automation<\/a> in streamlining their cumbersome processes and cutting down delivery times.<\/p>\n

Automation is profoundly affecting the way Logistics<\/a> are handled.\u00a0 It is disrupting the entire Logistics Supply Chain, not just the warehousing, picking, and sorting functions.\u00a0 The impact of Automation on roads, rails, and ports is immense.\u00a0 Ports are increasingly embracing Automation, but they haven\u2019t yet started getting the return on their investments.<\/p>\n

In Logistics, ocean and air shipment has potential for Automation\u2014which is certainly under way\u2014but its effect on enhancing throughput is yet to be seen. \u00a0Logistics operations are being transformed at quite a pace with new models, concepts, and offerings evolving rapidly.\u00a0 With the current pace of technology evolution, experts believe Logistics operations would be done autonomously in the not too-distant future.<\/p>\n

The COVID-19<\/a> pandemic has disrupted businesses and industries alike significantly.\u00a0 Businesses are trying to grapple with the ambiguities the situation has presented to them. \u00a0Automation is being viewed by many Logistics companies to be the only option to prepare for and survive in the future.<\/p>\n

Logistics companies are exploring ways to automate their businesses mainly due to 3 trends that are shaping their industry.\u00a0 These 3 trends include:<\/p>\n

    \n
  1. Shortage of Labor<\/strong><\/li>\n
  2. Proliferation of E-commerce<\/strong><\/li>\n
  3. Advancements in Automation<\/strong><\/li>\n<\/ol>\n

    \"\"<\/a><\/p>\n

    Let\u2019s talk about these trends in a bit detail.<\/p>\n

    Shortage of Labor<\/strong><\/h2>\n

    Labor markets are stiffening globally with lowest unemployment rates and high wages. \u00a0Online retailers everywhere have a huge demand for skilled workers. \u00a0This demand rise steeply in the holiday season.\u00a0 A sizable workforce is engaged in Supply Chain related jobs\u2014about 4 million only in the US as packers, handlers, and supervisors in warehouses.\u00a0 This translates to $100 billion in payroll costs.\u00a0 Automation will definitely reduce this cost head.\u00a0 However, it will have implications for the workforce.<\/p>\n

    Proliferation of E-commerce<\/strong><\/h2>\n

    Another trend that is affecting the Logistics industry immensely is the explosive growth of E-commerce retailers.\u00a0 The sales of e-tailers are growing at a consistent pace every year.\u00a0 With this trend, the range of products has grown considerably, benefiting the logistics businesses.\u00a0 Logistic companies are making significant profit from this large volume of online shipment orders\u2014saving about $12 to $20 on a sale of $100.<\/p>\n

    Interested in learning more about the trends that are shaping the Logistics operations?\u00a0 You\u00a0can download\u00a0an editable PowerPoint presentation on 3 Trends Driving Logistics Automation<\/strong> here<\/a>\u00a0<\/u>on the\u00a0Flevy documents marketplace<\/a>.<\/p>\n

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    \u201cAs a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.\u201d<\/p>\n

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    \u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

    Technological advancement has come a long way.\u00a0 Artificial Intelligence is taking charge of a number of repetitive logistics tasks.\u00a0 Organizations are benefiting from Automation in streamlining their cumbersome processes and cutting down delivery times. Automation is profoundly affecting the way Logistics are handled.\u00a0 It is disrupting the entire Logistics Supply Chain, not just the warehousing,… 3 Trends Driving Logistics Automation<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":8636,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[82],"tags":[1800,682,2400,112,2401,2392,2390,2389,2391,136,500,309],"class_list":["post-8634","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-operations","tag-automation","tag-e-commerce","tag-e-tailers","tag-logistics","tag-logistics-operations","tag-online-retail","tag-packing","tag-picking","tag-sorting","tag-supply-chain","tag-supply-chain-management","tag-warehousing"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/8634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=8634"}],"version-history":[{"count":5,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/8634\/revisions"}],"predecessor-version":[{"id":8642,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/8634\/revisions\/8642"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/8636"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=8634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=8634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=8634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}