Future-proof your supply chain with logistics innovations.
The logistics industry has always been an innovative sector, with the goal of creating and contributing to efficient supply chains. Take, for example, Malcolm McLean, who in 1937 came up with the idea of standardized containers, which became a reality through standardization in 1961 – or the European pallet, which in 1949 was designed by Gyllsjö Wood Industry and the Swedish State Railways, with dimensions of 800 x 1200 mm later standardized across Europe. These are examples of two innovations that saved time, space, and streamlined the supply chain, and which still persist today.
The pace of innovation is currently even higher—especially due to major technological shifts that, of course, also impact the logistics industry. We can summarize the main areas of these trends as follows:
- Digitalization and AI
- Automation
- Sustainability
Under digitalization and AI, several areas are included, such as big data, IoT, 3D printing, machine learning— you name it. Data is said to be the new gold, but what good is it if you know where the gold is but don’t know how to dig it up and refine it? Now, with increased digitalization, it’s possible on several fronts to collect, process, analyze, and develop new offerings based on the data that a logistics company holds. Through the Internet of Things, the supply chain, with the help of connectivity, can enable tracking and real-time monitoring of goods, trucks, and load carriers—information that provides input for better decision-making, control, and new services. And if, in addition, AI and machine learning are used to continuously learn from the collected information, even better data is generated for optimizing, for example, forecasts and routes (e.g., Amazon).
Automation includes both automated warehouses or terminals and self-driving vehicles and robotics. Robotic solutions in warehouses, such as Autostore or Carry Pick, are becoming more common, and autonomous trucks are also used in terminal handling. A few years ago, this was almost unthinkable and viewed with critical eyes. The next big thing in automated warehouses is forecasting, planning, optimization, and risk reduction by utilizing advanced analysis and decision-making tools with AI. The next step for vehicles is automation outside of buildings, with tests of driverless vehicles taking place and being evaluated in increasingly complex environments (e.g., mining industries or Einride), as well as robot solutions for home delivery of parcels.
When it comes to trends in sustainability, these are clearly linked to international and national goals—Agenda 2030. Among other things, the development of electrification is progressing rapidly through pilots and implementation of fully electric vehicles, expansion of charging infrastructure, and electric roads.
Despite its history of innovation and current pace of innovation, the logistics industry has been considered surprisingly slow-moving, and it is no coincidence that many innovation seeds have been sown and start-ups have emerged in recent years. We only need to look at other industries, such as banking or pharmacy, to understand that gaps such as innovations in digitalization and AI, automation, and sustainability have the potential to create competitive products and services. It’s dangerous to get stuck in old ways and constantly react to what’s created on the periphery.
What we need in the logistics industry are companies that lead the way and quickly move from ideas to testing, and finally, to implementation and scaling. At DB Schenker Consulting, we have many years of experience in proactively planting seeds, testing their competitiveness, and then allowing their growth potential to thrive through implementation. We are ready to help you and your company future-proof your supply chain with logistical innovations!
