Tech and transport, a match made in heaven

Technology is intrinsic to human life now, and dependence on tech will only grow, as the world continues to grapple with the Covid-19 pandemic. For businesses to survive, adapting and embracing newer, faster technologies has become a prerequisite.

The logistics industry is no different. In fact, even before the pandemic hit the world, logistics was one sector that had aggressively used technology to expand its horizon, especially to meet the demands of the ever-rising e-commerce industry.

There is no disputing the fact that real-time tracking of shipments has been a game-changer for the logistics industry. Artificial Intelligence, machine learning, IoT (internet of things) and data analytics help logistics service providers get access to milestone-based tracking, which enables them to view the details of the consignment from one hub to another along with the exact date of delivery.

So, how does IoT work?

Today, devices are created with built-in Wi-Fi capabilities and sensors, from mobile phones and ceiling fans to cars. The easy access to Wi-Fi and the internet connects everyone to everything, which is why it’s called Internet of Things (IoT).

IoT is opening up many opportunities for the logistics sector, such as reducing costs and delays by avoiding risks. Sensors are built into transport vehicles and are connected to alarm systems or the dispatcher that is monitoring and tracking.

These sensors process and transmit the information to the crew who then gains insight into hidden risks and knowledge. Although IoT isn’t an entirely new technology, it continues to impact the future of logistics, allowing for a more accurate in-transit visibility and delivery of goods.

Then there is Radio Frequency Identification (RFID) technology, which has also been in use for a few years and is a popular money-saving way for the logistics service providers to track their consignments. A tag or sensor is placed on the product and radio waves are sent out. The data is then received and processed by the company.

Telematics is also one such technological advancement provided by large auto manufacturers. A factory fitted e-SIM in the vehicles helps in tracking, tracing, monitoring driver’s behaviour and geo-fencing.  Such vehicles can be dedicated to specific category of goods to ensure safety and timeliness in delivery.

Paperless offices, reduced costs

A no-brainer, really. A computer today carries out tasks that were traditionally completed by five to ten workers. Logistics service providers now greatly simplify the process of shipping and returns using tech. Specifically-designed programmes enable consolidation in all aspects of their supply chain in one place. Software will enable digitally organised data and inventory, allowing logistics service providers to manage, monitor and track shipping information, paired with an electronic invoice. Not only can this reduce the risk of error, but there are also significant benefits in efficiency and quality control, saving great amount of money.

Widespread digitisation in India has given way to paperless offices, especially in creating applications for key documents such as lorry receipts and proof of delivery.  Automating these processes has not only resulted in increased efficiency but it has also brought the logistics business a step closer to facilitating contactless logistics.

Cost-effective routes

Another big plus that technology provides to the logistics sector is route optimisation. It is basically a process of choosing the most cost-effective route for a transport vehicle. However, it is slightly more complex than finding the shortest point between the pickup and delivery points. Leading-edge technologies have significantly reduced the transit time of the shipments through route management systems.

The advanced algorithm calculates the shortest and most cost-effective route depending on the two locations. Route optimisation not only saves cost but also time and manpower in the long run.

To explain this in detail, let us look at the example of Geofencing, which is a location-based service that entails marking a certain area or creating a virtual boundary, known as a geofence. With this, the transporter gets milestone-based notifications when there is a movement within the geofence.

The future: Drone delivery

A world where the bride receives her wedding trousseau and the D-day attire from a flying aerial vehicle sounds like something out of a movie, but that is where we’re headed. Recently in the US, Tesla unveiled an autonomous truck. While it wasn’t completely driverless, a driver in the passenger seat to monitor the computer was a huge step in this breakthrough technology. Amazon has already announced the future of packages being delivered right to doorstep by drones, called Amazon Prime Air.

This article has been written by Nilesh Ghule, Co-founder and CEO, TruckBhejo.