Page 26 - Indian Transport & Logistics News July - August 2024 Issue for Website

Spotlight
Logistics
Automation

3. Autonomous vehicles:
The rise of autonomous vehicles is
transforming the field of logistics.
These self-driving trucks, drones,
and delivery robots operate without
human intervention, resulting in cost
savings, improved safety, and round-
the-clock efficiency. This technology
has already made waves globally, with
examples such as Aramex's drone and
robot deliveries in Dubai and Wayve's
autonomous vehicle trials in London
for grocery deliveries.
4. Predictive analytics:
Predictive analytics uses historical
data, machine learning, and statistical
analysis to forecast demand, optimise
inventories, and enhance supply chain
efficiency. By analysing data such
as shipment volumes and customer
behaviour, companies can allocate
resources more effectively and
anticipate potential issues. Predictive
analytics enables proactive problem-
solving and improves profitability by
allowing businesses to operate with
leaner inventory and staffing levels of what is expected in the customer
while meeting customer demands. sectors of logistics companies, such
5. Robotic Process Automation (RPA): as retail and automotive (6 to 8%) and
Robotic Process Automation (RPA) pharmaceuticals (8 to 10%).
uses software robots to automate tasks Although the benefits of logistics
such as order and invoice processing, automation are evident, the
inventory management, and shipment implementation of these technologies
tracking. RPA reduces errors, improves presents its own set of challenges:
accuracy, and increases productivity, 1. High initial costs:
allowing workers to focus on more Investing in automation technology
complex tasks. This technology is set to requires substantial capital. For
transform logistics by driving process instance, a smart warehouse facility can
automation and enhancing efficiency. cost anywhere from $1 million to $25
Talking about the benefits and million, depending on the complexity
latest advancements, Koul said, "We Automated systems can of the systems installed. Therefore,
have recently launched J5, an in- provide high precision businesses must thoroughly assess
house advanced freight forwarding the return on investment (ROI) before
and customs clearance platform. to customer service and making such financial commitments.
Implementation is happening in inventory management 2. Job displacement:
phases, taking a one-line function at operations. Automation can displace human
a time to ensure the process settles Nishith Rastogi jobs, so companies should consider
down well and users are fully trained Locus the social and ethical implications
about it. Integrating AI into processes and plan for workforce transitions by
within Jeena has reduced internal reskilling employees for new roles
process time by around 30%." globally, investment in warehouse alongside automated systems.
automation will see the slowest 3. Integration complexity:
Challenges of implementing growth in the logistics sector, at Integrating new automation tech with
automation around 3 to 5% per year through existing systems can be complex
McKinsey research estimates that 2025. This growth rate is about half for businesses. They must ensure
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July - August 2024 www.itln.in