The last few years have seen an incredible amount of technological progress in the logistics industry. According to Statista, the 3PL market is projected to reach 1.3 trillion USD in 2024 which can be attributed in large part to the numerous logistics providers who continue to adapt new and advanced technologies. Let’s dive into some of the technology in 3PL operations that could revolutionize the industry in the coming years ⤵
Warehouse automation has gained popularity in recent years. Using warehouse automation, companies are able to streamline how they pick, pack, and manage inventory, thus improving efficiency in the fulfillment process. Logistics providers are looking towards automated item picking systems and case picking systems (AKA, robotics) that would only further increase speed and accuracy. Robotics in the warehouse offer the bonus of easy scalability to match your specific needs and demands.
AI can help logistics providers predict what is going to happen next with their business, leading to cost savings and an overall more efficiently run business. For example, logistics providers can forecast demand to make sure they have just the right amount of inventory without running out of stock. AI also helps predict how to allocate resources, such as workforce and warehouse space. Ultimately, AI can look at any kind of historical data and make educated predictions about next steps the business should take.
Blockchain is a way to record and share information that makes it very difficult for the system to be hacked or manipulated. The robust security features allow for streamlined payment and invoice processes with reduced risk of fraud or errors, helping to simplify transactions. Using blockchain technology, stakeholders in the logistics industry can implement strategies that incorporate optimized processes, provide real-time information updates, minimize errors, and enhance efficiency.
The Internet of Things (IoT) embeds physical objects with devices like sensors, software, or other technologies to connect and exchange information with other devices. Logistics providers use this to gain real-time insights, such as tracking shipments and monitoring conditions along a route, enabling them to mitigate delays and optimize operational efficiency. Another use would be inventory management, where the IoT devices could track expiration dates, necessary restocks, and storage conditions.
The growth of technology in 3PL operations has the ability to revolutionize the industry. Companies who don't adapt could find themselves left behind while others experience exponential growth. What technology do you think will revolutionize the industry?