The trend of smart logistics in digital era

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The trend of smart logistics in digital era

In the present era, the logistics industry is experiencing an explosion in the volume and flow of transported goods. The rapid growth of e-commerce, according to data from the World Trade Organization (WTO), is forecasted to have increased by 9.2% in 2021. This surge has placed significant pressure on traditional logistics processes, especially when it comes to handling large order volumes and information management.

Current Trends in Logistics Explosion

In the present era, economic development and the rise of e-commerce have led to an explosion in both the volume and flow of logistics activities. Coupled with this, the diversification of business models, the emphasis on speed, and the demand for flexibility within supply chains have introduced new challenges.

Logistics has grown increasingly vital in the supply chain due to rapid economic expansion. In 2019, the global logistics industry reached a total value of $6.6 trillion with a growth rate of 9.1%. Notably, the Asia-Pacific region held the largest share of the logistics market, primarily driven by the growing demand in China. Alongside the boom in the retail sector, the rapid development of e-commerce has brought both opportunities and challenges to the global logistics industry. Despite the continuous growth, reports indicate that approximately 12.6% of logistics resources remain underutilized, 15% of warehousing space is unused, and 20% of the labor force in logistics faces unemployment.

The Consequences of This Explosion

Efficient Process Automation: The significant increase in workload, particularly in handling orders, has made process automation a pressing concern to reduce processing time, optimize resources, and ensure accuracy.

Tracking and Big Data Management: With a large volume of goods moving within the supply chain, tracking their location and status has become increasingly complex. Smart technology needs to address the tracking challenge.

These issues have forced the logistics industry to adapt to the modern era and meet the requirements of this rapidly evolving landscape. Smart logistics has demonstrated its growing importance compared to traditional logistics by effectively addressing the problems faced by the latter and increasing efficiency for businesses:

  1. Process Automation: Automation technology is integrated to minimize manual processes, thereby reducing errors and improving productivity.
  2. Intelligent Tracking and Management: Internet of Things (IoT) technology and smart management systems help monitor the location and condition of goods, enabling better management and data-driven real-time decision-making.
  3. Data Analysis and Prediction: Smart logistics leverages big data and artificial intelligence to analyze large datasets and predict demand, optimizing transportation plans, inventory management, and scheduling.
  4. Fraud and Loss Prevention: Automated process management reduces human intervention, streamlining processes efficiently through well-designed systems.

These advancements in smart logistics not only address the challenges posed by the logistics explosion but also set the stage for more efficient and agile supply chain management in the future.

The Future Development Trends of Smart Logistics

In the future, smart logistics will strongly integrate with artificial intelligence, the Internet of Things (IoT), and Big Data to tackle complex challenges. These technologies will play a vital role in enhancing the performance and efficiency of the supply chain.

  1. Innovations in Big Data Management: Big Data technology will be instrumental in handling and analyzing vast amounts of data to optimize logistics processes and make informed decisions. According to IDC, the amount of data generated annually is expected to increase tenfold by 2025.
  2. Application of Artificial Intelligence and Machine Learning: Artificial intelligence and machine learning will be integrated to analyze data and make predictions, optimizing transportation routes, inventory management, and demand forecasting.
  3. Integration with the Internet of Things (IoT): IoT technology will be used for monitoring and managing transportation, storing product information, and automating logistics processes.

With the ongoing development of technology, smart logistics has become an indispensable element to adapt to and harness the full potential of the logistics industry. Businesses should invest in and integrate smart technology into their operations to promote the sustainable growth of this sector in the future.

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