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Three major logistics trends worth watching

Jun 04, 2020

In recent years, the market scale of my country's logistics industry has continued to expand, and demand has been steady and improving. Statistics show that the business volume of express delivery service companies in the country ranks first in the world for 6 consecutive years. In the post-epidemic era, as the company experienced better data access and the widespread use of analytics and artificial intelligence, the supply chain’s

The continuous transformation is largely driven by today's "customer experience economy". It is expected that my country's express delivery business volume will continue to grow by more than 20% in the next five years. Some experts said that at present, the scale of logistics related to people's livelihood and green economy has maintained rapid growth. In the future, my country's logistics industry will also present three major trends in logistics networks, data-as-a-service (DaaS) analysis, and artificial intelligence. These trends are also areas that we should pay attention to.

logistics network

The supply chain network makes the logistics parties more closely connected. Some experts pointed out that the industry is transitioning from a traditional point-to-point EDI network to a real-time API collaboration network. At the same time, a new "professional" network has emerged, which connects the parties and is also integrated in a larger network. Which includes

Real-time freight visibility; Internet of Things network for tracking assets such as containers, pallets, and unit load equipment. This will increase visibility and collaboration capabilities, thereby improving asset utilization, better inventory control and reducing congestion and detention. The tighter network also helps logistics companies create better experiences for their customers, enabling them to “digitalize” services such as payment, fulfillment and shipment monitoring. The real purpose is to reduce costs and provide better services.

Data as a service (DaaS)

Data-as-a-service (DaaS) is a cloud strategy used to promote the accessibility of business-critical data in a timely, protected and affordable manner. DaaS relies on the principle that regardless of whether there is any organizational or geographic separation between consumers and providers, users can provide specified useful data to users as needed. Today, the explosive growth of available data poses a key question for large and small organizations: how to use data and use them effectively? DaaS programs can coordinate data and provide it as a service for downstream applications.

This may include data on the location and route of the forklift and data identifying the warehouse and its congestion. In addition, information about trade routes, number of ports and shipments from overseas suppliers can be used in purchasing and transportation applications. Different sources (for example, multiple operators) normalize the data to make it easier to use on the client.

Analytics and artificial intelligence

The ability to analyze data using more complex (and more accessible) tools, including AI, will bring a better wave of decision-making to many companies, which is the ultimate answer to the need to increase the agility of the supply chain. As the network and data grow, the ability to use analytics to make better and faster decisions is unprecedented. New technologies for visualization and benchmarking are entering the operations team to achieve a more agile supply chain. As data quality improves, artificial intelligence can use data to improve operator selection, identify new product sources, and classify products to further accelerate the supply chain's faster global trade.

Looking at the current status of my country's logistics industry, JD Logistics, Cainiao Department and SF Express have basically formed a three-legged situation. As the industry pattern has stabilized and homogenous competition among enterprises has become increasingly prominent, in order to seize the market opportunities in the future, all parties have embarked on the road of comprehensive transformation and upgrading of diversified development. In the post-epidemic era, the above three major logistics trends have become an important direction for industry leaders.