Technology has influenced almost every single aspect of our lives. There’s no doubt that these days, our interaction with technology has highly increased. Therefore, most industries try to implement the latest tech trends in their favor before they get disrupted. 

The logistics industry is no exception. In fact, it could be one of the most affected and disrupted industries. The reason for this is that in the logistics industries there are many redundant activities that can be automated. Here are some of the most important things that technology has changed in the logistics industry. 

Expectation of Speed

In such an evolving world, people’s expectation of rapidness is increasing. According to Invesp, 56% of online shoppers expect to have a same-day delivery on every online store they buy.  Due to Amazon’s two-day delivery service, most companies need to compete with that type of effectiveness. Therefore, logistics companies try to be as efficient as possible. Most small businesses that don’t offer same-day delivery have a high risk of being replaced by the competition.

Artificial Intelligence

Artificial intelligence is one of the most influential tech trends that’s shaping the future of the logistics industry. Artificial intelligence is implemented in many areas such as security, automation, and efficiency. Autonomous cars, which are powered by AI, are threatening the role of truckers and drivers. 

With these type of vehicles, there won’t be need to hire a driver. However, they’re still on the early stages, so autonomous cars could only self-drive for a couple of minutes. Yet, this is still convenient in case the driver accidentally falls asleep. The car will autonomously drive for a couple minutes, and if the driver continues to be unconscious, it’ll automatically park. 

On the other hand, most of these cars and trucks also vibrate when the driver is deviating from the lane. On top of that, they also have security cameras that surround the vehicle so the driver can see blind spots and drive safer. 

Internet of Things 

The Internet of Things (IoT) means the connection of devices to the Internet. Many supply chain companies are using IoT to provide more efficiency in the logistics experience. In the logistics industry, IoT is used to monitor goods, provide real-time data of the road and improve efficiency of inventory management. 

IoT enables companies to improve fleet management and provide more security to the drivers on the road. IoT is widely used by most logistic companies these days because it enhances the overall performance of transportation. 

Cloud Computing

Cloud computing was created to minimize the risks and costs of maintaining the IT infrastructure. Regardless of the industry, most companies can benefit from having cloud-based SaaS solutions. When it comes to cybersecurity, cloud computing protects data from malicious intrusions on the company’s dataset. 

Besides, cloud software also improves communication in any logistics company. All members of the team have access to information about the transportation and the supply chain no matter where they are. 

 Enhanced GPS Accuracy

GPS systems are not new. However, since the invention of GPS software, logistics companies have improved its efficiency and accuracy. While in the past people used to have printed maps for directions, today it’s as simple as typing a direction in a smartphone. 

However, it’s not only about having accurate directions. It’s also about enhancing transparency. GPS-enabled transportation allows users to know exactly where their package is whenever they want. This way, everyone in the supply chain knows where the package is. Besides, this minimizes the risks of sending the package to a different direction. 

Blockchain

Blockchain is a decentralized financial system that is here to revolutionize the way we do business. Blockchain not only uses a different currency. It also provides more transparency for every given transaction. Plus, blockchain also reduces the time of payment verification. 

Logistics companies can benefit from blockchain to reduce the time and effort of validating the information of financial transactions. In addition, blockchain’s smart contracts provide more transparency and security in B2B collaborations. Smart contracts provide a single record that is shared by both parties. This way, if any of them does any changes, it’ll automatically be reflected on the other party’s records. 

Robotics

When we think about robots, we automatically believe they’re all going to take our jobs and replace us. This is something that everyone is worried about, but that’s simply not going to happen in the logistics industry. Robots in this industry have one single role: to help humans and make their work easier. 

Robots help logistic companies transport goods inside the warehouse. Therefore, when there’s a huge package, humans won’t have to do the heavy job. The most common version of robots in the logistics industry are co-bots. These are robots that can’t work 100% autonomously and require human intervention. 

Customer Service Tools

Customer service is another relevant aspect of any logistics company. According to Front’s 2019 Logistics Trends Report, 98% of logistics companies believe customer service plays a huge role in their business. They also pointed they’d be interested in investing in customer service software to improve their operations. 

Having high-tech customer service software will improve customer satisfaction and enhance the productivity of marketing operations as well. Customer service software streamlines the operations, making it easier to help customers with their queries. Some of the most popular customer service software are Sprinklr, Hubspot, and Zoho Desk. 

Data Science

Data science provides logistics companies with meaningful insights that help them improve the productivity and performance of warehouse operations. By implementing data analysis, logistics companies are able to identify trends and mistakes. This way, they can plan strategies that help them improve their service and provide a better experience. 

Conclusion

Technology has positively influenced the logistics industry. By using tech trends like IoT, artificial intelligence, and blockchain, logistics companies provide better services for their customers. Before the invention of most of the trends we mentioned, most tasks were tedious and required too much effort. Technology has brought automation and satisfaction to the logistics industry. 

DHL Express, the world leader in logistics and express delivery, has contributed to setting up trade between Israel and the United Arab Emirates as the first logistics provider in the region to complete a shipment from Israel to the UAE. Trade between the countries has been set up since September 15, after the recent negotiation of a peace agreement. The development further strengthens DHL’s network by connecting major hubs in metropolises such as Tel Aviv and Dubai.

John Pearson, Global CEO DHL Express, stated: “We at DHL firmly believe in globalization and that open borders are key to enhancing economic productivity across the globe. With the peace agreement between Israel and the UAE now in effect, our global DHL network made it possible to quickly establish new logistic routes between the two countries. We are convinced that both states will benefit from the increasing flow of goods. What is more, it will invigorate the prosperity of the entire Middle East region as trade will expand further.”

DHL became the first logistics expert to successfully complete a shipment from Israel to the United Arab Emirates, with a very special delivery. After receiving the official approval to initiate trade, Yair Biton, CEO DHL Express Israel, sent a limited-edition coin celebrating the peace agreement to his colleagues in the UAE. The coin was stamped by the Israel Coins and Medals Corporation.

Yair Biton comments: “Beyond the wide-ranging potential between the business communities on both sides, the UAE’s connections and trade contacts with various countries are very intensive and provide Israeli businesses with a gateway to the Arab World. Our international network enables our customers’ new business across borders, according to our mission of ‘connecting people, improving lives’.”

Geoff Walsh, Country Manager, DHL Express UAE stated: “DHL has always been committed to supporting the initiatives of the UAE government.  Our decision to begin the service lane operating flights between the UAE and Israel will further promote trade and commerce between the two countries, as well as energizing bi-lateral relations. We are jointly working towards boosting investment, collaboration and knowledge-sharing across these key business sectors.”

Located along one of the world’s busiest shipping routes, serving as a gateway to the Middle East’s largest economy, and acting as the cultural and commercial meeting point for three continents for centuries – Jeddah Islamic Port has always played an integral part in the world of commerce and trade.

With vision 2030, shipping and logistics have taken center-stage in the Kingdom’s plans, and the race is on to transform the Kingdom’s ports and airports into leading international logistics hubs, which help boost economic activity and leverage the Kingdom’s inherent strengths. There is a spirited drive to embrace change and a renewed focus at the highest levels in the Kingdom to carve out a name for innovation, business-friendliness and customer-centered solutions.

These developments dovetail perfectly with the vision and the plans of the Kingdom’s first and the largest Bonded and Re-Export Zone, LogiPoint – a one million square kilometer logistics zone located within the Jeddah Islamic Port which acts as a transformative platform for the Logistics industry.

LogiPoint is dedicated to enabling logistics in the region and to going OneStepFurther in designing unique and innovative solutions for the logistics industry. They work extensively with their clients to not only understand the needs and requirements today, but also to identify opportunities for innovative new solutions by anticipating the needs of the future. Embracing change, even leading change is part of the LogiPoint’s DNA. Some of the Logistics Solutions rolled out over the last couple of years are as follows:

Export Distribution Hub: Petrochemicals is the Kingdom’s single largest export, with hundreds of thousands of containers exported annually to destinations all across the world. LogiPoint worked tirelessly with the Petrochemical majors Saudi Aramco and SABIC, and with other high-volume exporters to re-engineer the entire export process and to bring the clients closer to their markets by reducing the lead time between order and delivery. In this high-volume, high-stakes industry, this efficiency in logistics translates to vital competitive edge for KSA exporters in the international market.

Cross-border Gulf: Shipments originating in Europe and the Americas, and passing through the Red Sea, typically have a transit time of 8-12 days ahead of them to reach the GCC ports in the Arabian Gulf. LogiPoint introduced the Cross-border Gulf service under which shipments can be discharged in Jeddah and moved to ports and final destinations in the GCC countries via bonded trucking. This helps reduce the transit times by 7-10 days and translates to greater efficiency, increased shelf life, as well as higher revenues and profitability for the clients.

Sea/Air and Air/Sea: LogiPoint have been working extensively with the industry stakeholders and the regulatory bodies to design and streamline multimodal movement of shipments seamlessly. Thanks to the initiatives taken by LogiPoint, it is now possible in KSA to import one leg of a shipment by sea, move it under bond to the desired airport, and load it out by air freight to its final destination. Similarly, air-freight imports can be moved to the LogiPoint bonded and re-export zone for consolidation before being shipped out by Sea. This is an important development in putting the KSA on the world logistics map as a strategically located multimodal logistics hub.

Bonded Express Facility: Lightning fast e-commerce relies extensively on efficient, error-free and high-speed logistics for survival and success. LogiPoint introduced the Bonded Express Facility to cater to e-commerce segment. This facility is dedicated to the clearance and fulfillment of express and e-commerce shipments and is the first of its kind at a Saudi Port. Through policies, processes and an infrastructure built with e-commerce needs in mind, the facility handles and facilitates inbound and outbound express shipments by sea, air and land, thus enabling the e-retailers and online platforms looking to penetrate and serve their target markets in Saudi Arabia and the rest of the Middle East. These initiatives have led to signing of groundbreaking contracts with global and regional e-commerce industry leaders.

Value Added Services: Over the years, LogiPoint have been offering a wide array of Value-Added Services (VAS). These include short-term storage, packing, co-packing, labeling, bundling and distributing goods, duty deferment (important especially when VAT has become such an important part of costing for a supply chain), and clearance and delivery support. There is also the Reefer Village, which boasts a Reefer Container Yard with 240 plug-in points, Reefer cross-stuffing stations, and an ever-expanding fleet of trucks and gensets.

With an eye to the future, LogiPoint have invested into becoming operators of Logistics Parks and Zones in the Kingdom and beyond. Logistics Park, Modon in Jeddah Industrial City 1 and the Logistics Park, South Jeddah in Khomrah are two examples of such investments, which will help create thousands of jobs directly and indirectly. There are exciting new projects in the pipeline, which will see LogiPoint expand their footprint across the Kingdom through strategically located new Logistics Parks and Economic Zones.

In addition to strengthening the Logistics sector in Saudi Arabia, LogiPoint are working diligently to develop Jeddah and the Kingdom into the region’s foremost multimodal logistics hub serving the global trade. In terms of life cycle, LogiPoint are only at the beginning of their journey, and are very well-poised today to play an ever-greater role in nation building and development.