The major component driving the advancement of the logistics industry is the digital transformation. Emerging technologies offer new solutions to tackle existing challenges such as warehouse automation, last-mile delivery, and transportation optimization. For logistics companies striving to survive in this highly competitive industry, it is vital to innovate rapidly and integrate new solutions.
This article was last updated in July 2024.
Dive into Our Data-driven Logistics Innovation Map
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Automated Guided Vehicles (AGVs)
Considered the ground equivalent of drones in last-mile delivery, automated guided vehicles hold an even greater potential for disruption in the logistics industry. Logistics companies willing to innovate in this area can draw from various use cases such as last-mile delivery, line-haul transportation, and warehousing operations. In warehousing, the main application, AGVs massively contribute to a new paradigm of material handling by meeting full automation. In last-mile delivery, significant progress is made as well with automated guided vehicles even being ahead of drones as the regulatory system is more open toward them.
Robotics & Automation
In less structured environments, robots are already capable of manipulating objects, therefore, supporting zero-defect logistics processes and massively supporting performance as well as improving sensing capabilities up to a point where they nearly substitute manual handling. These robots are either 100% automated or collaborate with people (“cobot”). A few of the use cases are remarkably conceivable: fully automatic solutions unload containers or palletize which establishes new application areas such as collaborative, pick & place, and shelving robots among many others. Whereas large companies focus on integration (building hardware and combining it with vision/tactile solutions), cutting-edge startups tend to specialize in vision and tactile solutions, one of the biggest opportunities in the robotics area as they aim to solve challenges such as speed, picking from random, part quality vision, and color contrast.
Augmented Reality (AR) & Wearables
Wearable technology such as smart clothing, bionic arms, or smart contact lenses act as a powerful support tool for the human workforce. Adding an augmented reality system such as wearable cameras or smart-glass displays unlocks additional value for logistics companies, e.g. gamification to train & onboard new employees or the utilization of smart glasses for picking, positioning, and scanning to empower employees to work hands-free.
Drones
Drones (aka unmanned aerial vehicles) begin to disrupt the industry by offering in- and outdoor use cases such as last-mile delivery, inventory management, security, and inspection scanning, serving as collaborative tools for delivering items between employees inside the warehouse as well as certain material handling scenarios. Though drones are not expected to replace ground delivery entirely (see AGVs for reference), this technology has a significant impact on logistics processes.
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Last-Mile Delivery
As the rise of eCommerce has reinforced the importance of customer preferences and demands, last-mile delivery has become a vital aspect for logistics companies. Through making use of smart lockers, a flexible courier workforce along the power of the crowd, last-mile delivery acts as a key differentiator in terms of customer satisfaction.
Anticipatory Logistics
Though anticipatory logistics is not yet very common in the industry, it is without a doubt that it will become a powerful asset. Implemented through software solutions, anticipatory logistics predict demand before it occurs. This enables logistics companies to substantially improve efficiency through reduced delivery times and better utilization of their transport capacity and network through predictive algorithms derived from big data.
Machine Learning
Machine learning or, as it is sometimes called self-learning, is one technology bound to transform the logistics industry as we know it today. Because this form of Artificial Intelligence (AI) requires very little human intervention and adapts algorithms according to the data received, it becomes more efficient automatically. Some application areas for machine learning in the logistics industry include the optimization of algorithms for shippers to select carriers, route, and do quality control, the use of natural language processing (NLP) to speed up data entries, as well as the optimization of storage, order picking, order validation and waste reduction in the warehouse. Ultimately, this results in process optimization and the automation of decision-making in logistics.
Internet of Things (IoT)
Logistics companies are widely expected to take full advantage of the IoT as is holds many promises. Some of the many application areas include smart objects taking part in event-driven processes, asset tracking within the warehouse and in the delivery status, environment sensing (e.g. freshness monitoring), and fleet management. Overall, the IoT adds massive value across the entire supply chain including warehousing, last-mile delivery, and freight transportation.
Disruptive Startups In The Logistics Industry Include:
- French startup Scallog optimizes order fulfillment utilizing automated guided vehicles to lift up to 600 kg and carry storage shelves at a speed of 1 m/s thus dramatically improving warehouse efficiency.
- German oculavis produces smart glasses which empower the human workforce to complete their tasks hands-free. The startup makes use of AR to create new applications including picking & placing orders by vision, scanning, and real-time tracking.
- UK-based Unmanned Life is an award-winning startup operating at the frontiers of drone technology. The company currently works on building “the world’s first and only fully autonomous drone-based parcel sorting center”.
- Quiqup provides e-commerce logistics and delivery services for businesses in the UAE, handling the entire process from checkout to delivery with tech-driven solutions for enhanced tracking and efficiency. The company caters to varying business sizes and needs, offering services like 4-hour international deliveries, storage, and fulfillment, all designed to improve the e-commerce journey for both businesses and their customers.
- Bulgaria’s Transmetrics is on a mission to end delivery inefficiencies by providing logistics companies with network optimization and demand forecasts using predictive analytics and big data.
- Sentenai facilitates the use of sensor networks to support real-time intelligence across logistics networks or in the cloud. The startup’s stream learning system gathers a company’s data to increase the intelligence of its systems, which is able to adapt to changes as it can relearn a stream’s structure.
- IoT startup CargoSense lets companies easily track valuable assets via their platform. The startup’s software taps into data provided by internet-connected sensors, thereby guaranteeing logistics companies full transparency as to what happens to a package until delivery.
Explore Emerging Logistics Startups & Technologies
The eight innovation areas outlined in this Logistics Innovation Map scratch the surface of what we found during our analysis. Blockchain, logistics as a service, cloud logistics, digital identifiers, and additive manufacturing are all areas bound to significantly impact logistics companies in one way or another. Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage and becoming an industry leader.
