The latest "Global Supply Chain Logistics Trends and Challenges and Their Implications on CVs, 2018 - 2025" report highlights the logistics industry and the challenges that disruptive technologies aims to solve.
Key challenges faced by the supply chain logistics industry are:
- Increasing carbon footprint from transportation
- High level of transport vehicular emissions
- Lack of visibility in the supply value chain
- Increasing human capital expenses
- Increased urban restrictions which hinder the movement of freight in the urban environment.
The supply chain logistics industry is undergoing a transformation as technologies like autonomous transportation, Internet of Things (IoT), telematics, data analytics and blockchain are all becoming more widely adopted. Increasing supply chain complexity and service requirements are leading to innovations in last-mile delivery. These technologies and trends are shaping the commercial vehicle ecosystem as well to meet the new requirements. Demand for electric and fuel cell vehicles will increase drastically in the long term, aided by technology development and incentive programs addressing the emisions issue and a reduction in the dependence on fossil fuels used for transportation. A combination of these technologies is creating a connected supply chain with greater transparency which addresses critical issues such as low asset utilization, empty miles and demand-supply mismatch.
New business models have also evolved because of digital proliferation. Growth of telematics services that aid driver comfort and behavior addresses driver retention problems. Level 5 autonomy has the potential to completely eliminate driver costs, though the impact will only be felt after 2030.
The convergence of disruptive technologies is enable new concepts like digital freight brokerage, which optimizes the brokerage process and also opens up new revenue streams and business opportunities.
Meanwhile, Logistics 4.0 enables connectivity of the entire value chain. A connected supply chain, in addition to minimizing the disruptions and associated losses, also maximizes efficiency and throughput by improving operational KPIs. Last-mile delivery is also undergoing a paradigm shift with the emergence of innovative business models. Usage of aerial drones and ground bots along with electric urban delivery vehicles is on the rise with a number of start-ups providing technologies in these areas.
Light commercial vehicle (LCV) manufacturers are collaborating and partnering with technology companies and logistics providers on urban delivery innovations. Commercial vehicle OEMs are working double-time towards bringing futuristic technologies more quickly. A number of collaborations within OEMs, technology providers and logistics companies are among the key strategies being adopted to stay relevant.