Trucking companies of all shapes and sizes will continually look to technological solutions to enhance their logistics efforts. With supply chain issues continuing to vex the transportation sector, trucking companies need all the help they can get. Fortunately, supply chain trends point to a scenario where technology will help trucking companies speed the delivery of goods at the lowest cost possible.
Of course, the pandemic has not been easy on the logistics sector. Operators in this space have dealt with pandemic-related setbacks for a long time. Obviously, COVID-19 created a disparity between the supply of goods and the demand of those goods. Therefore, we are where we are today.
To ensure the delivery of goods remains efficient and consistent, trucking companies and other transportation sector actors must step outside the box and experiment with different logistics methodologies. Micro-fulfillment centers, for example, represent a great way for trucking and e-commerce companies to get deliveries where they need to go on-time.
How Micro-Fulfillment Centers are Coming into Their Own
Still, the upside is that businesses have been forced to take a hard look at their operation and streamline logistics policies. How can they continue to keep customers satisfied by ensuring their orders are received easily and show up on time? Commercial storage facilities have come a long way since everything was done on pen and paper.
Micro-fulfillment centers for groceries and perishable goods are expected to grow by a significant amount in the next four years or so. Why? Because we don’t need giant warehouses anymore. Last-mile delivery has evolved quite a lot over the last few years. As such, the transportation sector has adapted to the changing paradigm.
Micro-fulfilment centers are other otherwise known as urban warehouses. Urban warehouses have made Amazon a juggernaut in the retail and e-commerce spaces. Ranging from 5,000 to around 20,00 square feet, these facilities play a critical role in the successful fulfillment of e-commerce orders. They can also meet the needs for same-day delivery, whether it be through in-store pickup or otherwise.
Urban warehouses are essentially a creation of the e-commerce boom. As a result of the changes in retail purchasing behavior, customers and providers require more capability. There is a fare higher demand for quick shipping, efficient operations, and excellent customer service. And trucking companies understand that they must rise to the demand before their competitors do so first.
Another new trend are reverse supply chains. They will continue to expand as we move through the years. 2022 should bring even more growth in the reverse supply chain sector. And managers will look for more ways to create a better operating environment using reverse logistics.
Using Machine Learning to Enhance Operations
This is not the first time we have talked about AI and machine learning. AI will be a critical tool even for logistics providers. But what are the specific trends that will influence logistics planning and maintenance? Fortunately, there are many, many companies offering novel innovations in logistics management.
Let’s take a closer look at these innovations. First, expect to see continued growth in autonomous vehicle technology. These technologies have been under development for many, many years, and soon we will see driver-assisted AI operating Class 8 motor vehicle on our nation’s roads and highways. The technology will first become ubiquitous on long-haul operations.
Of course, there will be some growing pains. Several states, like Arizona and Nevada are changing their driving policies to allow OEMs building autonomous vehicles to use their states to test the technology. And if we want to wean ourselves off fossil fuels and optimize our transportation, we need to embrace technologies that create a more efficient operation for all industries.
How Autonomous Vehicles Continue to Change
Growth in the autonomous and semi-autonomous vehicles sectors has been rampant thanks to the work of some of the big players in freight delivery. Companies such as DHL, UPS, FedEx, and more continue to make heavy investments in autonomous vehicles. The goal? Not to eliminate truck drivers, but instead to make it easier and more efficient to ship goods around the world.
It won’t be long before logistics companies are using autonomous vehicles to make deliveries, whether last-mile or otherwise. AI technologies in vehicle development and operation is one of the biggest trends of the 21st Century. We have already seen maturation of the technology in other areas, from freight management to preventative maintenance. But autonomous vehicles will really change the game one they come online.
AI is also already being used to assist with route optimization, recruiting, and predictive analysis. Machine learning can analyze weather and traffic patterns and make accurate predictions about the status of a tractor and trailer.
3D Printing Take Over Traditional Manufacturing
3D printing technology has revolutionized whole swaths of the global manufacturing sector. Entire product lines have gone through an entirely new transformation thanks to 3D printing. But where is 3D printing impacting the trucking, transportation, and warehousing sectors?
The fact is 3D printing’s presence in the marketplace has only been growing more and more over the years. It used to be a novel new technology, but now industries of all shapes and sizes are using it to manufacture products and parts. It will impact trucking companies as well. How? Well, imagine that 3D printing allows companies to offer just-in-time production. This allows them to manufacture to order instead of mass-producing high levels of inventory.
Even more, 3D printing technologies are being used at nearly every part of the supply chain process. 3D printing machines can be found in warehouses, for example, where producers and manufacturers use them to build product mock-ups or replacements on demand, in real time. Even distribution centers are getting in on the game, using 3D printers to assemble orders before they are shipped out to the end customer.
In the past, we have advocated for fleet managers to make big investments in fleet management software. Every year that passes, fleet management software becomes even more capable and complex. Even more, today AI solutions have been incorporated into fleet management software. Thanks to AI human intervention into fleet management software processes are needed less and less.
Last-Mile Delivery Growth
Thanks to urban warehousing and e-commerce expansion, last-mile delivery services are going to expand year-over-year. Just about every trucking analyst agrees with this assessment. And you can see this in how e-commerce companies are responding to their last-mile needs. As vehicles continue to change, expect to see last-mile deliveries handling a more diverse array of freight moves. There is also a financial imperative to last-mile delivery growth. It has simply become cheaper for individuals and companies to utilize smaller last-mile delivery companies than it is to use couriers like DHL, UPS, and FedEx.
Additionally, the technology adapted for the last mile gives logistics companies the option of providing full transparency to their shipping partners. Whether delivery small packages, televisions, or cars, last-mile logistics operators can now give their customers plenty of options, tracking, and transparency for their most important deliveries.
There is a reason why partnerships in the transportation sector are so important. Retailers, trucking companies, and logistics companies must work together to focus on creating the best possible experience for their customers. Utilizing technology to do this also allows for more adaptability and flexibility. Unexpected events and market shifts give companies a great excuse to shift technologies. This ensures the continued, smooth flow of products up and down the supply chain.
Blockchain Technology for Supply Chain Management
Blockchain technology has moved beyond the realm of cryptocurrencies. Today, trucking and transportation companies use it to create more secure contracts and decentralized ledgers. This allows all participants down the line to track all transactions and movements in the blockchain. The blockchain goes a long way in reducing fraud by making all but impossible for unscrupulous actors to alter data without detection.
From a fleet perspective, blockchain technology will ensure better asset utilization and help the trucking industry more accurately forecast and predict volumes. It will also enable better driver monitoring and help fleet managers understand whether the vehicle was operating under the right regulatory framework or not.
other benefits of blockchain include transparency of price, ownership, and the entire process of the freight movement. Trucking companies and their shipping partners can expect a reduction in the cost of regulation compliance, improved traceability and track ability, and expedited claims settlements. To say that the blockchain may revolutionize trucking transactions is an understatement. So, what’s next for trucking and logistics in 2022 and beyond? We’ll be right here reporting on it!