Top 5 Innovations That Have Transformed Logistics and Trade

Know five mind blowing innovations of the century, that made drastic transformation in the industry of Logistics and trade

Top 5 Innovations That Have Transformed Logistics and Trade

Logistics is a complicated industry and there is absolutely no doubt about it. Even though it can be summed up pretty easily as the processes involved in transporting the goods from the point of manufacture to the point of consumption, there are a lot of things that are covered under the process. It takes proper planning and even careful execution to run the industry properly as it is quite huge and complex. International trade can be made possible only with the help of a seamless logistics system working alongside it. Below given are some of the best innovations in logistics that has changed the course of the industry for the better:

1. Blockchain Technology:

The more people that are involved in logistics and supply chain, the more complicated it gets. The major issues that the logistics industry of today face is the lack of transparency and the absence of proper ways to track payments. With the introduction of blockchain into logistics, this issue can be resolved. Blockchain increases the transparency when it comes to transactions made, by integrating the data from each and every participant involved in the supply chain. Fraud detection and prevention of theft are some other important benefits of integrating blockchain with logistics. The number of intermediaries that are to be present between each transaction is also decreased here. Many well-laid logistics companies in the trade have managed to reduce human error and transaction costs, making blockchain one of the most innovative aspects to be integrated into blockchain. 

2. Containerization

Apart from the fact that containerization has decreased the shipping costs, they have also had a tremendous impact on reducing the time spent by shipments in the ports. The use of containers to shipping goods from one place to the other has made it easier for the shipments to be transported from one place to the other, which has been incredibly beneficial for perishable goods as well. Before, it used to take a longer time to transport perishable goods, and it was even more of a trouble to transport them to distant places. But this has changed with the invention of containerization. The handling of cargo has decreased and the protection against pilferage has increased considerably. 

3. Drones

As customers have completely adapted to the online mode of shopping, more and more companies have opened their virtual stores and have begun shipping their products all over the globe. Here, quality is determined by the speed of shipment and how efficiently the products reach the customers. Companies like Amazon have already made use of drones to bring the products quickly to the customers, with a delivery time as little as 30 minutes. Drones also decrease operational and shipping costs, which pose a huge advantage for logistics companies. Yet another advantage of using drones is that there is no trouble at all when it comes to returning an item to the warehouse. 

4. Fibre Optic Cables

The flow of information is as important as the flow of goods in logistics and supply chain management. If there is a delay in communicating the relevant information across various departments, it can cause a delay in the whole system, which ultimately causes an increase in lead time. Born-global companies cannot grow at the pace that they intend if they cannot communicate properly to the offices that are placed internationally. The use of fiber optic cables for communication has revolutionized the way such companies do business. The logistics industry has also gained a lot from the use of fiber optics as the flow of information has become more smooth and fast. 

5. JIT Manufacturing Process

The Just In Time manufacturing process has indeed transformed the logistics industry. The shift from being forecast-driven to being demand-driven has showered the industry with various advantages. The parts of products are assembled according to the demand they receive, or in other words, they are manufactured just in time. This prevents any inventory cost as there is no need for additional space to store the finished goods. There is also no wastage of products as they are produced only according to the demand. The advantage can be seen in terms of cost-effectiveness and reduction in manufacturing time. Various companies have adopted this method of manufacturing, which has led to a more lean supply chain as well. 

Every industry must undergo constant change in order to bring out its complete potential and the same can be said about the logistics industry. It has immense possibilities to improve and to innovate, creating a better and quicker flow of information and products from one place to the other.