5 Ways Technology Is Leading The Future Of Logistics

We are in the midst of a global supply crunch, with pandemic-induced disruption causing cargoes to back up at ports and soaring shipping costs.

Despite current uncertainty, things will return to normal – just not anytime soon. The sort of disruptions we are experiencing this year are likely to be with us through next year.

We have seen how technology has addressed the challenges of the pandemic, such as the rise of video calling platforms facilitating the sudden shift to remote working for many. Here are a few ways technology is reshaping global logistics to help us be better prepared for future supply chain disruptions.

1. Revolutionary Transport Systems

One of the biggest disruptors in the logistics sector will be Virgin Hyperloop an advanced, on-demand, incredibly fast cargo pod system that will give cargo owners synchronised, seamless and intelligent movement of goods.

Pods are propelled magnetically through the system across large distances at speed, sustainably powered by renewable energy. Ports integrated with this system will be able to securely move people and goods “at the cost of trucking and the speed of flight”.

DP World has invested in bringing this revolutionary autonomous system to the Middle East, and I had the pleasure of watching the first passenger tests in Nevada, bringing us one step closer to making it a commercial reality.????????????????????????????????????????????????????????????????????????????

2. Blockchain Transactions

Blockchain’s momentum will continue to grow as it makes supply chains more secure and transparent.

The digitally encrypted technology allows end-to-end supply chain data to be shared with concerned parties, in the same way as cloud-based data sharing. But blockchain creates a secure, real-time permanent record of all transactions that can’t be corrupted – highly prized attributes in global logistics.

Many sectors are already using blockchain to secure payments, speed up documentation and automate transactions, and this will probably become the medium of choice for cross-border trade as well.

3. Smart Contracts

Automation continues to permeate different aspects of life and the logistics industry is no exception. While AI and automation grab the headlines, smart contracts are making waves with supply chain operators.

These are set digital protocols that action transactions at each stage of the supply chain once conditions are met. This could mean automatically issuing an invoice when a shipment arrives, settling payments between parties, or other supply chain transactions.

Automating what was once done manually and removing the need for third-party arbitration speeds up the entire process.?????????????????????????????????????????????????????????????????????????????????????????????

4. Automated Container Storage

Smart innovations like DP World’s BoxBay are reimagining the way containers are handled in ports.

I say smart because this intelligent High Bay Storage (HBS) system is fully automated to increase terminal handling speed, energy efficiency and safety, while decreasing operating costs.

DP World is partnering in a pilot project currently underway in Dubai, to speed up how containers move through the port.

Scaled to fit any location, the system allows containers or loads of up to 50 tonnes to be stacked up to 11 stories high, putting an end to unproductive container shuffling to maximise space. It provides the capacity of a conventional terminal using a third of the floor area.

5. Digital twins

Imagine being able to look into the future and see supply chain disruptions before they happen – reducing the chance of stock shortages at retailers or ageing inventory at manufacturers.

It sounds far-fetched, but a digital twin can simulate your entire supply operation and provide insights on likely disruptions on the horizon – although you don’t actually get to see into the future.

A digital twin harvests comprehensive data sets from multiple sources, giving complete visibility on suppliers, inventories, weather events and other parts of the supply chain.

Delving deep into the details helps optimise functions like sourcing, planning, distribution and logistics, and can offer valuable insights to help navigate today’s uncertain times.

While innovation can’t fast-track this year’s gifts and supplies, investing in these types of step-change technologies gives us a better chance of making current disruptions a thing of the past.?