9 Transportation and Logistics Technology Trends in 2022

25 April 2022

Liubomyr Sirskyi

Content Manager

Logistics is among those sectors that are heavily influenced by innovations. This industry is known for massive amounts of data and manual processes, so it has gained massive advancement in recent years. 

Therefore, enterprises adapt to the new reality and adopt advanced strategies using innovative solutions. They have responded to the latest IT logistics trends in 2022, and we will review the most prominent of them in this article. 

Blockchain

DHL and Accenture stated that the provisional cost of blockchain implementation in logistics in 2022 is $11.7 billion (compared with $2.7 billion in 2019). Moreover, such a solution reshapes the entire industry. Therefore, it is not surprising that blockchain is one of the most rapidly growing logistics industry trends worldwide.

Distributed ledger technology is crucial, making operations more efficient and strengthening data security. It is especially vital for 3PL (third-party logistics). Let's take Koopman Logistics as an example. It became the first enterprise that adopted the BTC blockchain to manage automotive delivery, so it helped develop a completely paperless system with a data-driven approach for vehicle delivery management. Hence, more companies will use blockchain solutions to cut expenses. 

Artificial Intelligence for Transportation

AI-based software may be great for outstanding analytics. Coupled with machine learning, it helps to make precise predictions, manage the entire supply chain and optimise spendings. Two other things significantly improved delivery service: self-driving AI and smart road technology. Plus, first-class cognitive automation solutions make task management easier and faster. And that is why they are among the crucial and current trends in the logistics industry.

For instance, New Zealand-based startup Insite created a top-notch AI-based solution for price projecting, process development and streamlining trade procedures (especially for consumer packaged goods and retail areas). It helps to evaluate risks and control operating conditions. Further, Insite provides tools for efficient data processing allowing managers to make prompt and informed decisions regarding product replenishment.

Internet of Things

We mentioned above that optimised data management is considered one of the vital technology trends in transportation and logistics in 2022. According to the McKinsey study, overall investments in automation will grow by 3–5% (for logistics) and 6–8% (for retail industry) by 2025. And the Internet of Things (IoT) has become one of the most crucial elements of the automated approach. 

Enterprises need cutting-edge solutions to improve data processing to guarantee quick logistics management flow. The Internet of Things connects thousands of physical devices into a massive network, allowing enterprises to monitor and manage relevant data. 

IoT technology has an extension called the Internet of Behaviours (IoB). It assembles data based on the user's behaviour and is linked with IoT apps. Check this article to find out more about the IoB.

Supply Chain Visibility In Real Time

It is one of the vital trends in logistics and supply chain management that continues to evolve. And now, enterprises require advanced supply chain visibility solutions that process valuable data in real time. This approach allows businesses to optimise their operations with actual data like weather conditions, navigation patterns, current traffic, etc. Integrations of purpose-built software make supply chains 20% more efficient, according to Innovecs

When talking about real-time supply chain visibility, we should mention IoT sensor devices. They can be placed on parcels or containers to monitor valuable information. In addition to tracking shipments, IoT sensor technology allows enterprises to check fuel consumption, monitor wear and tear on equipment, and make logistics proactive. For instance, Hapag-Lloyd AG empowered Danish startup Globe Tracker to deliver an IoT solution for the Hapag-Lloyd Live monitoring system. Plus, T-Mobile Austria provides seamless integration with existing infrastructure. That is why we will see more collaborations between transportation giants and young startups in 2022. 

Warehouse Automation

Such an effective solution reduces the human factor and boosts the productivity of all operations. Warehouse automation includes the following technologies:

  • Robotised guided vehicles (AGVs);
  • Robot-based picking & palletising;
  • Automated storage and retrieval systems (ASRS);
  • Put To Wall solutions.

All these options mitigate the risks of errors and enhance overall warehouse productivity. In the case of warehouses, they need a mixture of highly effective technology trends in the logistics industry to cut expenses. 

There are some successful examples of warehouse automation. Indian startup Addverb Technologies developed Dynamo, a robotised guided vehicle for moving various goods (e.g., working with large-sized loads on a massive scale). Dynamo is available in custom equipment and requires minimal involvement in picking operations.

Another product for warehouse automation is an automated storage and retrieval system. Such a tool can help improve space utilisation and streamline product storage management, thus cutting operational spending. Exotec has developed the Skypod for automated warehouses. This system optimises floor space by using a wire rack with a maximum height of 10 metres.

Technology-Powered Sustainability

This trend covers multiple fields, and logistics is among them. Take last-mile delivery, for instance. It is often cumbersome and time-consuming, requiring some cutting-edge and reasonable approaches. For this reason, companies implement a wide variety of technologies, from electric cars to AI, that chooses the optimal route to lessen CO2 emissions. 

A vast number of companies tend to minimise the impact on the environment. For example, Amazon hopes to become a green company by 2040 and invites other businesses to follow environment-friendly transportation and logistics industry trends. The e-commerce giant, for its part, has signed a contract with Rivian for 100,000 electric vehicles.

Furthermore, over 60 shipping companies led by Maersk stated their commitment to using fleet and net-zero fuel by 2030. This approach has two purposes: to reduce the industry's carbon footprint and inspire other commercial groups to leverage sustainable thinking.

Cloud Computing

Cloud technologies are also designed to change everything in digital logistics. Its size will grow 21.7% every year and reach $46.5 billion by 2025 (according to MarketsandMarkets Global Forecast). 

Among the upcoming logistics technology trends, software-as-a-service (SaaS) business solutions are worth mentioning. SaaS technology minimises communication failures and enhances data management, which makes it an integral part of the IT infrastructure. Hence, warehouse and 3PL giants can implement cloud computing for better fulfilment accuracy and mitigating the pain points. That is why they form advanced strategies to improve processes.

Cloud computing is also an essential part of instant e-commerce, which focuses on delivery time. It has become a response to customers' demand for getting something as soon as possible. Learn more about this business model here

Digital Twins

Many logistics experts know that actual products do not always look like digital models. They don't consider replacing parts, the fatigue impact, and possible product modifications. However, digital twins technology allows us to engage with a computer model of a real object or its part, which changes the game rules once and forever. 

It opens up vast opportunities for deploying such a technology in the logistics sector. Let's take shipment operations as an example. Digital twins can improve them through real-time data processing to determine potential problems. As for now, the port of Rotterdam gathers valuable information about the infrastructure, water condition, and air quality for creating multifunctional hyper-smart containers. This data is helpful for two purposes:

  • Determine potential problems during transportation;
  • Create the future digital twin of the port of Rotterdam that will be an example for other ports. 

Plus, transport hubs can use such models to improve delivery efficiency. That is why they are expected to be one of the most crucial digital trends in logistics in 2022. 

Digital Training

The global pandemic forced enterprises to move online. Even those companies that refused to propose their employees work remotely had to adapt. Plus, many warehouse companies had to hire more people to cover the growing extraordinary demand for online sales. To make their training more efficient, they have begun online sessions. Innovative tools (like video conferencing software, texting apps or even LMS) help enterprises train new workers and cut expenses. 

Many people have stated they prefer to work from home part-time or full-time. Logistics and transportation companies, for their part, will continue the digital training of their employees and implement more first-class technology. 

How These IT Trends Will Affect the Logistics Industry

All mentioned e-commerce logistics trends will significantly impact the whole field. Moreover, the emergence of new technologies in logistics like IoT, blockchain and artificial intelligence are compelling enterprises to pick the best solutions to make their operations more efficient. Therefore, businesses and workers need to prepare for new challenges in 2022. 

At Rocketech, we know how to implement cutting-edge technologies that help you reach your business goals. Using our experience in logistics and e-commerce, we set a list of the most helpful features for every project. Whether you have a small handmade shop or a vast marketplace, we fulfil even the most specific requirements. If you want to know more, check our expertise and contact managers to apply for our help. 

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