Logistics Technology Trends to Act on in 2024

Global supply chain disruptions, labour shortages, and demanding delivery schedules, are putting companies under pressure as we go into 2024. The ability to deploy new logistics technology will be central to mitigating these challenges.

From autonomous forklifts to fleet management software, 59% of UK logistics companies say they plan to invest in new logistics technology in 2024. Companies are also recognising the growing necessity of interconnecting their logistics systems, to streamline operations across the entire supply chain network.

Let’s look at these, and some other key trends, that look set to shape the logistics industry in 2024 and beyond.?

1) Improvements in AI;

Generative AI is a market that is expected to be worth around $13.9bn by 2031, growing at a CAGR of 43.5% from 2023.?

While some logistics systems, for example, Warehouse Management Systems (WMS) already incorporate AI to support functions, generative AI offers a new approach.

Software engines powered by generative AI can process far larger amounts of data than before. They can learn about the intricacies of a specific company’s supply chain ecosystem, and refine and sharpen their analysis and execution over time. Benefits include:?

• More accurate and timely models factoring in all kinds of supply chain considerations, from weather patterns, and port congestion, to manufacturing delays. Real-time predictive analytics will help companies avoid bottlenecks further in advance, so they can formulate contingency plans and maintain service delivery.
• Deeper analysis of data will help to optimise inventory levels in warehouses, and analyse traffic patterns and product movement, helping companies utilise space more efficiently.?
• More expansive view of the supply chain Generative AI can take an expansive view of the supply chain, for even better optimisation and delivery options, based on real-time factors.?
• Automated Execution will ensure analytics are actioned timely and mitigating the need for human intervention.? This drives sustainable and accurate execution every step of the way.

From demand forecasting, and route planning, to inventory management, many digital logistics technology systems utilise AI. The real trick, however, lies in tying all these systems together into one cohesive ecosystem, to ensure data integrity, seamless communication and execution

2) Using digital technology to break down silos

Collaborative logistics ecosystems are gaining momentum. By sharing resources, assets, and information between shippers, carriers and warehouses, companies can improve efficiencies, and reduce costs, whilst offering consistently excellent experiences at B2B customer touchpoints.?

For example, whereas a typical Transport Management Solution (TMS) focuses on load and route planning optimisation, the majority lack warehouse management, or real-time tracking and analytics.?

By integrating a TMS with other business systems, such as the ERP, CRM, (or specialised logistics software, like a Slot Management System), it's possible to facilitate more effective interactions between all stakeholders in the supply chain. This enables smoother communication, enhanced efficiencies, and boosted productivity.

3) Sustainability will be top of mind

The transport and logistics sector contributes to around a quarter of global carbon emissions. Sustainability is a clear objective for companies in 2024.? New mandatory reporting and disclosure around emissions is poised to take place across Europe, too (CSRD including Scope 3 emissions reporting). This means companies will be required to measure, not just their own direct carbon footprint, but those of suppliers and partners right through the supply chain.?

Ways to go greener include switching to more environmentally-conscious suppliers, using eco-friendly packaging solutions (e.g. multimodal ), improved route planning and transport utilisation and considering alternative fuels. This has already become a priority, with 93.7% of companies saying they plan to invest in switching to biofuels.?

Logistics technology is also helping companies move towards a more sustainable future. For example:?

• Introducing electric vehicles.
• Using AI for demand forecasting to reduce overstocks and stockouts and to optimise storage space.
• Route optimisation software can take into account factors such as distance, real-time traffic, vehicle capacity, and delivery time windows, to reduce fuel consumption.?
• Modular transportation solutions enable more efficient journeys.

4) Autonomous vehicles

The rapid progression of AI, sensor technologies, and connectivity, are the catalysts behind the emergence of autonomous vehicles (AVs).?

From self-driving vehicles and trucks, to warehouse stackers, forklifts, pallet trucks, and carry rack robots, autonomous vehicles will continue to enhance logistics operations.

The benefits of increased use of AVs are multi-fold and include:

• Improved efficiencies?
• Streamlined last-mile deliveries?
• Enhanced safety?
• Greener operations
• Better customer service

Logistics technology maturity, a lack of regulatory frameworks, and market readiness are all factors limiting the mass introduction of AVs. However, this sector is worth keeping an eye on in 2024, as there’s likely to be a gradual increase in the use of autonomous vehicles over the coming years.

5) Drones and delivery robotsnbsp;

The number of packages delivered by drone year on year increased by 80% from 2021 to 2022 reaching 875,000 deliveries worldwide. By the end of 2023 drone drone deliveries were forecast to reach one million.?

Drones could become integral for some companies in the logistics sector (for example Prime Air) enabling reliable delivery of goods, whilst overcoming traffic congestion and delays. The main barrier to more widespread use will be regulation, rather than logistics technology.

Delivery robots could transform last-mile delivery. They’re being successfully trialled in Milton Keynes, and DPD have confirmed they are bringing robots to more than ten UK towns in the next year.?

6) Rise of multimodal transport solutions;

Single-mode transport solutions are common in middle-mile freight. Managing the smooth transition of loads between truck and rail, for example, creates additional failure points that can damage on-time delivery.?

However, with increased digitalisation of supply chains, it’s possible to reliably coordinate the use of multiple transport modes to deliver greener and more effective outcomes. Green multimodal solutions that deploy a combination of HVO road and rail transport are able to deliver an 84% reduction in carbon emissions, while increasing on-time deliveries. We expect to see increased adoption of these types of solutions in 2024.??

Don’t just adopt one of these trends;

The logistics and transportation industry looks set to become more reliant on AI, autonomous vehicles, drones, and multimodal transport options. It’s essential companies are aware of, and open to, all new trending technologies in 2024.

However, your ability to deploy these types of technologies requires digital visibility and control over your wider supply chain. This is critical to gathering data and ensuring effective automation at every point.??

At Zeus Labs , we’ve focused on this central problem of digitising logistics to enable ourselves to deploy many of these trends. Freight Command is a SaaS solution that helped us transform our haulage business, and it’s now available to help you:?

• Integrate all your logistics systems together, including your TMS, ERP and WMS. Freight Command sits over your existing tools, providing you with a central command centre.
• Employ advanced predictive analytics to identify problems, and proactively address them. Live dashboards enable teams to track deliveries, and gain performance insights.
• Move towards sustainability goals with a unique “green” multimodal solution based on sustainable supply chain practices.

References:

1. Trends Shaping 2024: Evolution of the Transport and Logistics Industry - BDO
2. Generative AI ln Logistics Market?
3. Responsibility of Transport and Logistics: Carbon Care
4. Logistics Industry Recovery Still Has Some Way to Go
5. Trends for 2024 and Beyond

To find out how Freight Command can help you stay competitive and achieve greater sustainability in 2024 and beyond, book a demo today .