Third-Party Logistics is a greatly growing industry worldwide. Per Grand View Research, the global 3PL market size is expected to reach $1. 2 trillion by 2025, with a CAGR of 7. 5%. Considering the demand for 3PL services, players in the industry are investing in technology-driven logistics management software to reinforce their tech collection. 3PL providers are profiting bothersome technologies to enhance their distinctive abilities.
Hemorrhage edge technologies have triggered Industry 4. 0, a data-driven approach that grows on information management and mining it to contract logistics company in kolkata automate processes and pace up end-to-end business series. In this scenario, AI, machine learning, blockchain, IoT that are banging in the old way of doing trade, are also bound to spill-over into the logistics industry in general and third-party logistics business in specific.
Artificial Brains: AI will trigger a new data-driven approach in logistics management software for 3PL companies, known to be seen as an uncertainty and volatility. Combined with machine learning technologies; it will help make strategic decisions driven by actionable brains and have a confident affect efficiency, speed, and service quality. AI, when integrated as a technology in 3PL software, facilitates real-time data exchange for your cargo lifecycle. AI-driven tools are enhancing human capabilities in supply archipelago and logistics by assisting high-speed data-driven actions. For example, AI technology like natural language processing, can remove mission-critical information from numerous accounts generated by different partners across the supply archipelago of a 3PL company.
When we asked Lynn Smith, VP for the Supply Archipelago & Logistics Management Software business unit at Katalyst Technologies about the advanced technologies that can be built-into 3PL software to help third-party logistics providers are more efficient in 2020, he explained,
When we asked Charlie Foley, CEO at Bulk Memory Cards about the advanced technologies that 3PL providers can bank on in 2020, he stated, “IBM recently launched its Quantum service, which is the one to look out for in the logistics management software space. Logistics is actually the traveling salesman problem, an NP-Hard problem which can be sorted through Quantum.
“Some less esoteric technologies integrated in logistics management software are blockchain and lot. Blockchain for ledgers as well as transactions and lot in advanced tracking, such as environmental and other data monitoring are already being used by some leading 3PL companies. ”
Moreover, cognitive automation, a combination of AI and RPA, is making business processes intelligent and empowering 3PL companies to make well-informed decisions, thereby creating a positive affect the MOTOROLA ROI. RPA automates tasks by copying massive amounts of data without human efforts, whereas AI extracts information from the data received from RPA. Once AI classifies the data, RPA can generate documents like bills, accounts, and execute payments for end-users.
Blockchain: Blockchain elicits trust and immutability in the link between 3PL providers and their clients. It adds visibility, standardization and innovation to the logistics structure. Blockchain can reduces costs of and digitize activities like navy management, procurement, shipping movement, customs collaboration, trade documentation, and workflows. The client will be benefitted, as costs are optimized and errors are eliminated, while supply archipelago gets traceable and transparent. Well-known 3PL providers are showing their commitment to buy blockchain capabilities.
Andy Moses, Senior VP of Global Products at Penske, said about how Penske is navigating emerging technology markets and the blockchain project specifically, “When it comes to emerging technologies, we’re not here picking winners or losers. We simply stand for our customers. Shippers have much to gain from profiting new technologies, and we are committed to bringing them innovation that drives competitive advantage in their supply archipelago.
“Blockchain specifically offers a great deal of promise, while recognizing that there are difficulties for this new technology to overcome, before it reaches numbers of adopting in day-to-day use by businesses large and small. Our investment in blockchain understands our commitment to learning, developing and implementing innovative solutions for Penske customers. ”
BiTA, Blockchain in Transport Alliance is a platform where 3PLs, shippers, supply archipelago management software companies, shipping forwarders, and technology structure companies are working together and influencing the development of blockchain applications within the transportation industry. Leading 3PL providers like C They would Velupe, FedEx Logistics, Uber Shipping, J B Hunt, Coyote Logistics, Schneider, GlobalTranz, and much more are members of BiTA, who are working with other industry leaders to introduce blockchain interventions in the coming years successfully.
Drones: Drones is one of the trending technologies that is expected to revolutionize the 3PL industry in 2020. They can cut delivery time from days to hours, helping companies to satisfy their customers’ expectations related to speedy delivery. According to Yariv Party, CEO of Flytrex, a drone company, “Flytrex will soon begin its on-demand, unmanned food delivery via commercial drones for residents of Holly Springs, North carolina. Once up and running, flight time from pick up to fall off is within a few minutes, faster than any alternative. ”The latest growing technology will redefine customer experience in 2020.
Internet of Things: According to Forbes, the next-gen companies known as Logistics 4. 0 will be online of Things to connect physical items with internet-enabled devices. According to a written report focused on the internet of Things (IoT) mutually released by Cisco and DHL, there will be 50 thousand devices linked to the internet by 2020. The report further adds that in the coming period, the logistics industry will achieve higher numbers of in business efficiency as IoT attaches millions of shipments being moved, monitored, and stowed in real-time.