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Logistics industry

Logistics industry

The Indian logistics industry is expected to grow to $215 billion by the year 2020 with investments in the sector estimated to reach $500 billion by 2025. Currently, the industry is fragmented and is facing several challenges due to the lack of streamlining in operations. The logistics industry involves coordination between various functions like booking, transportation, documentation and payments, the lack of which leads to reduced productivity and increased costs. With the advent and adoption of technology across multiple industries, it is only a matter of time before the logistics industry completely embraces and adopts revolutionary technology like AI, robotics, machine learning and blockchain. Further to which, end-to-end coordination between the different functions will be streamlined, making the entire process smoother and more efficient. Within the supply chain, the booking of delivery trucks is being made easier with the implementation of machine learning and Artificial Intelligence (AI) that recognizes patterns in data, making the booking process more predictive, accurate, and efficient. The technology is used to understand how clients make their bookings, then the data is used to conduct operations proactively. This means that vehicles can be pre-moved to areas that have a greater booking demand, leading to a cut in operational costs. AI is also used to check the inventory levels and to assess if new orders need to be booked. Another technology that has transformed booking in the supply chain is API data integration which allows the different enterprise systems to communicate with each other seamlessly. The next phase within the supply chain is transportation which involves the pickup and delivery of cargo. Robotics has disrupted the warehouses by taking over the work that was done by humans. The robots work on deep learning algorithms and take a fraction of the time to receive, sort, store, retrieve and deliver cargo as compared to humans. Telematics, which blends telecommunications and informatics, streamlines logistics by providing operators with real-time data about vehicles. This is enabled through connected devices and an Internet of Things (IoT) that allows users to track vehicles, oversee the driver and monitor fuel usage. It also provides information about the driving time and the estimated time for unloading cargo. The introduction of digital Standard Operating Procedure has also made transportation smoother as it gives drivers instructions on how to handle the shipments. Documentation, one of the biggest reasons for the discrepancy in the supply chain, is becoming increasingly digitized to enable streamlined operations. Packing lists, commercial invoices, waybills and load manifests are all moving to the digital platform. Smart contracts, which are blockchain driven, is a revolutionary technology that has changed how documentation is carried out across the supply chain. A smart contract contains a pre-programmed set of instructions that stores the terms of a contract between two or more parties. Since the contract works on the blockchain, it executes the terms of the contract as soon as the pre-specified conditions are met.